Are you aiming to build your business empire in Oman? If yes, Salalah free zone company setup can be an excellent move for you. With over 140+ registered companies, the SFZ is an emerging business hub for logistics, food processing, pharmaceuticals, assembly & light manufacturing, reexporting, and green energy.
Salalah Free Zone company setup is a business registration procedure that allows foreigners to register a company in the Salalah Free Zone with complete ownership powers.
From a FZ Limited Liability Company & Free Zone Establishment to a branch and representatives, you can register a Salalah Free Zone business setup from anywhere.
As a non-Omani resident, you can liaise with the Free Zone authority, open a company bank account, enrol for taxes with the Oman Tax Authority, and obtain a business license with Enterslice. Our associates will also help you file your annual returns, register for VAT, declare the ultimate beneficial ownership, and fulfil compliance obligations.
0% Corporate Tax- Long Term Benefits
No Restrictions on Dividends and Earnings Repatriation
No Minimum Capital Requirement
Best location- Ease of International Business
Personal Income Tax- 0%
Enjoy 0% Customs Duty on Import & Export
Partner with Enterslice for Salalah Free Zone business registration, establish a strong business presence, and take advantage of Oman’s Vision 2040 benefits for entrepreneurs.
The benefits of Salalah Free Zone company setup include corporate tax concessions, duty-free movement of goods, a strategic location for global trade, and no minimum capital requirement. The key advantages of the company registration in Salalah free zone are as follows:
You don’t have to pay corporate taxes for a period of up to 30 years after the Salalah Free Zone business setup. As a business owner, you can enjoy financial incentives and use that money for company expansion and growth.
Goods like equipment, raw materials, and machinery to and from within the Salalah Free Zone are duty-free from import and export duties, meaning 100% customs exemption after you start operating from the free zone.
Once you register a company in the Salalah Free Zone, you can enjoy the zero-rated VAT treatment on supplies within the Free Zone. A reduced 5% rate does apply if you supply goods to the mainland region.
Foreigners can completely own their Free Zone LLCs and FZEs after registration without any restrictions, meaning there’s no need to appoint a local sponsor or partner.
As a foreign-owned business shareholder, you can repatriate 100% of your earnings, dividends, and profits to your home country without any deductions.
With the Free Zone’s proximity to the Salalah Port, you can take advantage of the cost-effective container hub and reduce the logistics and shipping times after the Salalah Free Zone company formation.
If you’re seeking Salalah Free Zone business formation, you can obtain various approvals like initial registration, business license, visa approvals, and related regulatory approvals through the Public Authority for Special Economic Zones and Free Zones (OPAZ).
Oman has various types of Free Trade Agreements with over 20 countries, which allow entities to obtain market access to duty-free goods and services after the Salalah Free Zone company formation.
The Free Zone is specifically designed for manufacturing and industrial business activities with modern infrastructure, strong utility supplies, storage, and warehousing facilities.
You must have at least two members to establish a limited liability company. The type of business structures for Salalah Free Zone company formation is as follows:
An FZ limited liability company is a structure that can be formed with two shareholders and one director. Highly recommended for global entrepreneurs and big partnerships. All members enjoy liability protection for their personal assets against business debts.
An FZE is a legal entity structure that can be registered by one shareholder who can be either an individual or a corporate entity. Most foreign entrepreneurs and sole proprietors go for this structure because it separates the liability of the business from that of the single shareholder.
Foreign parent entities can open a branch office as a Salalah Free Zone business setup. However, the setup doesn’t have a separate legal existence of its own. The parent organization controls the branch.
A representative office is a liaison office that is used by foreign founders for marketing, research, promotion, and networking within the Salalah Free Zone local market. You can conduct economic activities and commercial activities with an RO.
Business owners with existing Omani mainland companies can expand their business operations in the Salalah Free Zone by registering a branch office in the FZ region. Like a foreign company’s branch office, the local entity is responsible for all operations.
The list of documents required for company formation in the Salalah Free Zone is as follows:
Application Form
Passport copies of all members
Proposed company names (at least three)
Specimen signature of all shareholders/directors
A lease agreement (flexi-desk or warehouse)
A latest passport-size photograph of key personnel
Business plan
Memorandum of Association
Articles of Association
A resolution appointing the manager
Specimen signature of the authorized signatory
A Board of Resolution for the branch office setup
A certificate of incorporation and good standing
Power of attorney (POA), if any
Register of all directors and shareholders
Audited financial statements of at least two years (for the branch office)
Company profile
Check out how Enterslice consultants will help you apply for Salalah Free Zone company formation, as explained below:
Our associates will help you finalize a company structure based on your business activity. You can choose from Free Zone LLC, FZE, a branch office, or a representative office.
The next step is to file an application to obtain the initial approval for registration, name approval, and lease from the Salalah Free Zone Authority. We'll submit documents like passport copies, corporate documents, proposed business names, and a business plan.
Our associates will assist you in leasing an office, such as a flexi desk, warehouse, industrial land, or a small private office in the Salalah FZ. Our legal associates will draft the lease agreement on your behalf before applying for the Salalah Free Zone company formation.
Foreigners are needed to submit incorporation documents like the MOA, AOA, power of attorney, board resolutions, and related paperwork after notarization and legalization. Our lawyers will help you complete this task before the final submission to the authority.
We'll submit the incorporation documents once you’ve signed them to the Salalah Free Zone Authority. You must pay the registration and license fees, as prescribed by the concerned governmental authority.
The Free Zone authority will issue the commercial registration certificate and Free Zone license for company formation in the Salalah Free Zone.
Even though there’s a tax exemption for over 25+ years, you must still register for corporate tax with the Oman Tax Authority for compliance after the Salalah Free Zone business setup.
We'll help you apply for a company bank account opening in top banks that are foreign-founder friendly, like the Bank Dhofar, Bank Muscat, Sohar International, and National Bank of Oman.
The timeline for Salalah Free Zone company formation is as follows:
You should search the company name through the MOCIIP portal to ensure your name doesn’t conflict with any mainland companies. Send out three proposed names to the SFZ authority.
Submit the application form, passport copies, a list of proposed business activities, company name, and shareholder details to the Salalah Free Zone Authority to obtain the initial approval.
Notarize and legalize the shareholder documents and sign a lease agreement with registration/license fees to finalize the company formation in the Salalah Free Zone.
The Salalah Free Zone Authority will review the documents and grant the Commercial Registration, Chamber of Commerce Enrollment, and Trade License certificate.
Apply for a corporate tax ID with the Oman Tax Authority once you’ve completed the Salalah Free Zone license process and registration.
Set up a corporate bank account by submitting your business plan, incorporation paperwork, and compliance documents, as requested by the banking authorities, to conclude the Salalah Free Zone company formation process.
The key criteria for Salalah Free Zone business setup are as follows:
Get an insight into the requirements of the Salalah Free Zone license process.
The Salalah FZ is mostly famous for industrial, logistics, and light assembly business activities for the Salalah Free Zone company formation.
Top Industries for Salalah Free Zone Company Setup
Common Activities for Salalah Free Zone Business Registration
Enterslice's compliance team will help you fulfil the annual obligations within deadlines. The compliance requirements after the Salalah Free Zone company formation are as follows:
At Enterslice, we will enlighten and help you with effortless Salalah free zone company setup.
Enterslice is a global business incorporation service provider. We’ve successfully helped over 5,000+ foreign entrepreneurs, startups, and SMEs in the Middle East's top jurisdictions like the UAE, Saudi Arabia, Egypt, and Oman. Key reasons to trust Enterslice for Salalah Free Zone company formation are as follows:
You can apply for the company formation in the Salalah Free Zone from anywhere- fully remote, meaning you don’t have to travel to Oman for starting a business in the FZ, as a foreigner.
Yes, the SFZA allows 100% ownership for global entrepreneurs looking to register a business setup in the Salalah Free Zone without needing to appoint a local director or sponsor.
Companies registered in the SFZ don’t have to pay the usual 15% income tax for up to 30 years after the incorporation. Moreover, foreign founders are free to repatriate their earnings after the business is set up fully.
Although not mandatory by law, you should appoint a corporate service provider who would assist you in completing formalities for license approvals, bank account openings, local employee hiring, and visa approvals.
A Free Zone limited liability company is good for two or more partners with flexible management and liability protection. Other options include a free zone establishment, a branch office, and a representative office. Besides, an FZE is more advantageous for a single-member business setup.
No, currently there are no restrictions for foreigners seeking a Salalah Free Zone company setup for most business sectors like manufacturing, logistics, green energy, warehousing, supply chain businesses, and services.
The company formation in the Salalah Free Zone will allow you to: 1) enter the international business trade; 2) save business profits via 100% earnings repatriation; 3) have no tax liabilities- zero-rated VAT, customs duties, and corporate tax; 4) ability to scale up operations in other GCC jurisdictions; and 5) simplified and centralized licensing setup.
The fee structure (in USD) for the business setup is as follows:
The above-mentioned structure doesn’t include capital investment by individual shareholders.
No, you don’t require an Omani resident as your company’s local partner or director since the Free Zone allows complete foreign ownership for non-resident founders for Salalah Free Zone company formation.
All legal entities are required to get separate approvals alongside the company incorporations, depending on their business activity. Common licenses include trade, industrial, and services.
No, you can establish an offshore company in the free zone. All owners are required to lease an office, land, warehouse, or flexi desk within the FZ. Besides, the offshore setup is not permitted by the authorities due to the requirement of actual business operations after registration.
Yes, companies are allowed to update or modify their licensed activities by formally applying with a request and obtaining the mandatory approvals from the SFZA and ensuring compliance with the regulations.
Currently, there’s no minimum fund mandate by the SFZA for global and non-Omani residents seeking an LLC or FZE in the SFZ, Oman, easing the financial burdens for SMEs and startups.
Yes, you can lease ready-to-use warehouses, storage facilities, factory settings, and industrial units for foreigners since investors can’t own land in the Salalah Free Zone. However, you can lease the office or workplace for at least 30 years.
Yes, as a foreign founder, you’ll have to employ at least one local resident in accordance with Oman’s legislation and regulations after you register a company in the Salalah Free Zone.
If you cross the required threshold of USD 100,000 in a year, then you will need to enrol for Value Added Tax. Accordingly, you will have to file monthly and quarterly reports with the Oman Tax Authority.
The standard corporate income tax is 15% in Oman, and a 10% is applied on payments to non-residents for management fees, services, and royalties. The rate doesn’t apply to the Salalah Free Zone-registered companies after incorporation.
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