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Sohar Free Zone Business Setup- An Overview

Sohar free zone business setup for foreigners provides a flexible company structure, complete ownership control for foreigners, tax breaks, and customs duty relief. Obtain affordable office workspaces and transform your business dream into reality.

Enterslice’s services for Sohar Free Zone business registration include MOA/AOA drafting, document notarization, coordination with the authorities, flexi-desk setup, tax registration, and corporate bank account opening. Our associates will also assist you in preparing your financial statements and making mandatory post-registration declarations.

Check out options like co-working spaces, flexi-desks, small private offices, or commercial leases for storage or warehouses, depending on your business activity. At Enterslice, we'll also assist you in connecting with the best Oman-based fintech banking solutions, so you don’t have to worry about expenses and fund management after Sohar Free Zone company registration.

No Restrictions for Global Businesses

up to 25–30 Year Tax Holidays

Import and Export with Zero-rated Tariffs

Remote Business Incorporation- No Need to Travel

No Local Partner or Director Required

Expand Your Operations Globally- UAE and Beyond

Personal Income Tax- 0% in Oman

Handled via OPAZ ((Public Authority for SEZs and FZs)

Key Sectors- (Manufacturing, Trading, and Logistics)

Company Formation in Sohar Free Zone with Enterslice

Apply for company formation in Sohar Free Zone with Enterslice’s specialized team of over 10,000 experts globally. Get multilingual support to translate documents for business setup and join the club of companies in the Sohar free zone.

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What Are the Benefits of Sohar Free Zone Company Setup?

The benefits of Sohar Free Zone company setup include complete foreign ownership, long-term tax exemptions, profit repatriation flexibility, and liability protection. Some key advantages are as follows:

Corporate Tax Incentives

Corporate Tax Incentives

As a newly established company, you can benefit from tax benefits for up to 25 years, depending on your business activity after Sohar Free Zone company registration.

100% Foreign Ownership

International Expansion

There are no such restrictions on foreigners seeking Sohar Free Zone company registration setup in Oman. You don’t have to appoint a local partner or sponsor. As a foreign founder, you can appoint directors of any nationality.

Complete Repatriation of Profits

Complete Repatriation of Profits

Global entrepreneurs can fully repatriate their capital gains, earnings, dividends, and profits without any deductions or taxes to their home country after Omar Sohar Free Zone business formation.

No Duties Within Free Zones

No Duties Within Free Zones

You don’t have to worry about import or export duties on goods moving in and out of the Sohar free zone region, increasing your revenue after Sohar Free Zone business registration.

Optimal Location

Optimal Location

The strategic location of the Sohar Free Zone provides direct access to the Sohar Port, expanding a gateway to other GCC countries, India, and East African international jurisdictions.

Ease of Operations

Ease of Operations

You can save yourself some hassle by obtaining all types of licenses, permits, and visa approvals via a single portal after company formation in Sohar Free Zone.

Advanced Infrastructure

Advanced Infrastructure

As a foreigner, you can easily get an office space, workplace, or a warehouse at the best quotes with the Sohar Free Zone company setup.

Fully Remote Setup

Fully Remote Setup

There's no requirement for you to visit Oman for Sohar Free Zone company registration. You can start a company with a flexi-desk or a co-working space.

What Are the Types of Structures for Sohar Free Zone Company Registration?

The types of structures for Sohar Free Zone company registration are as follows:

Free Zone Limited Liability Company (FZ-LLC)

An FZLLC legal entity is a business structure that you can open with two or more members. The structure provides liability protection to shareholders, meaning you can protect your personal assets against business debts. Partners can enjoy flexibility in the management of the company.

Free Zone Establishment

A free zone establishment is a company structure that allows single foreign entrepreneurs to establish a Sohar Free Zone business setup in Oman’s top FZ. Artificial persons, like legal entities, can also become shareholders in an FZE.

Branch of Foreign Parent Company

A branch office of a foreign parent company is a legal structure that doesn’t have a separate legal existence of its own. The parent entity has complete control over the branch office’s management and business operations. You can easily establish a Sohar Free Zone company setup of your international entity, provided you appoint a local service agent for administrative tasks during registration.

Mainland Entity’s Branch Office

If you have a limited liability company (LLC) in Oman’s mainland area can establish a branch office in the Sohar free zone to extend your business operations and network with tax advantages and fewer duties.

What Documents Are Required for Sohar Free Zone Company Registration?

The list of documents required for Sohar Free Zone company registration is as follows:

Application form for the incorporation

Copies of the applicant’s passport

A copy of the parent company registration certificate

A board resolution

Company's office address (flexi or co-working office lease)

Proposed company name (at least three)

Memorandum of Association

Articles of association

A certificate of good standing (if required)

Power of attorney (if applicable)

A business plan and a list of activities

ID proof of the local service agent

Resume of all shareholders

Specimen signature of authorized signatories

Company incorporation certificate of the mainland LLC (if any)

Appointment letter for the authorized signatory

Ultimate beneficial ownership declaration

Organizational structure of the proposed entity

Capital structure information- usually declared, not paid-up

Looking for speedy documentation?

How to Register a Company in the Sohar Free Zone with Enterslice?

Understand how to register a company in the Sohar Free Zone with Enterslice experts:

Select a Company Structure

The first step is to select a business structure like an FZLLC, free zone establishment, or branch office setup. Our associates will help you decide the well-suited structure, depending on your capital, business activity, and management.

Name Reservation

Our associates will help you decide and reserve a company name for Sohar Free Zone company registration. You should select at least three names before applying for a reservation. The company name should be free of any type of conflict with an existing business or trademark in the Free Zone. The name shouldn’t violate any laws of Oman.

Draft Documents

Enterslice’s legal professionals will prepare the business’s Memorandum of Association & Articles of Association, name reservation certificate, passport copies, CVs of the shareholders, and related paperwork. Our associates will also oversee notarization and translations of the entire documentation.

Application Filing and KYC Review

Once we’ve prepared your documents, we’ll apply for Sohar Free Zone company registration with a business plan, incorporation paperwork, shareholding structure, and proposed business activities to the FZ authority. The authority will scrutinize your business profile, registration documentation, and KYC of all members. If satisfied, they will give you the initial approval.

Set up an Office Address

We'll help you select office space based on your company's requirements and business activities. Most foreign founders go for flexi desks, co-working, or private addresses. Options like a private office, factory lease, or executive are better for industrial, trading, or regulated activities.

Sign Documents and Obtain the Business License

You will have to sign the incorporation documents, submit the entity’s registered office lease, and make the payment for Sohar Free Zone business registration and license approval. The FZ authority will evaluate the documents and issue the CR certificate and trade license.

Register for Taxes

Even though there’s a tax holiday for Sohar Free Zone business setups for up to 0-25 years on corporate income, you must still register for corporate taxes. Businesses that exceed the USD 100,120 taxable income should enrol for value-added taxes (VAT). Our tax associates will register for mandatory compliance with the Tax Authority of Oman.

Open a Company Bank Account

A corporate bank account is mandatory to separate personal and business funds and capital. The account will help you manage expenses, make payments to vendors, and disperse salaries. Common banking institutions that are foreign-friendly include Sohar International Bank, Bank Muscat, National Bank of Oman, and HSBC Oman.

Confused about the complex process?

What is the Timeline for Company Formation in Sohar Free Zone?

The timeline for company formation in Sohar Free Zone is as follows:

Reserve a Business Name: 1 to 2 Days

Search and reserve a trade name with the Sohar Free Zone Authority before formally applying for the company's registration. The name search will assist in avoiding potential infringement and legal disputes. Apart from the company's registry, you should also check out the National Intellectual Property Office (IP) portal for a search against registered trademarks.

Documentation: 5 to 7 Days

Prepare the registration documents to obtain initial approval for the Sohar Free Zone company registration. Draft a business plan with market segments, list the proposed activities, and map out the organizational structure. You should also form shareholder agreements, draft the MOA/AOA, and notarize all documents.

Obtain Preliminary Approval: 2 to 3 Days

The Sohar Free Zone Authority will review all the documents and conduct a compliance screening of all the shareholders and directors of your Free Zone LLC or Establishment. The FZ authority may seek clarifications if they have any questions regarding your applications before granting approval.

Get a Business Address- 1 to 2 Days

Once you’ve obtained the initial approval, you should sign the lease for your official business address and all the incorporation documents to obtain the Sohar Free Zone business setup certificate and trade license.

Pay the Registration Fees and Obtain the Final Approval: 1 to 5 Days

Pay the Sohar Free Zone company registration, license, and any other administrative charges, and obtain the certificate of incorporation and business license authorization from the FZ authority.

Tax Registration: 5 to 7 Days

Enrol for corporate tax with the Oman Tax Authority with the required company documents after completing the Sohar Free Zone license process.

What are the Key Criteria for Oman Sohar Free Zone Business Registration?

The key criteria for Oman Sohar Free Zone business registration are as follows:

  • The activity should align with the permitted list of activities with the FZ. 
  • A plan should explain the nature, target market, projections, and risk assessments.
  • The business model should include human resources, projected turnover, and feasibility.
  • Clear mention of the company structure with proposed business activities.
  • The ultimate beneficial ownership declaration on all owners. 
  • Board resolution and company documents must be submitted for the branch office. 
  • Personal ID and residence proof of all directors and managers.
  • The MOA should declare USD 52,000 as the minimum capital, not paid-up. 
  • A business address is required within the Sohar Free Zone Area. 
  • You can apply for a Sohar Free Zone company setup with a virtual address. 
  • A general manager should be appointed (no restrictions on nationality).
  • A corporate bank account for separating personal and company funds.

Get expert insights on how to register a company in Sohar Free zone.

Business Opportunities for Sohar Free Zone Company Registration

From services & trading to commercial and industrial, explore over 100 business activities before you kickstart your Sohar Free Zone company registration.

Top Industries for Sohar Free Zone Company Setup

  • Green Energy
  • Tech
  • Food Production
  • Manufacturing
  • Logistics
  • Metals
  • Professional Services
  • E-commerce

Common Business Activities for Sohar Free Zone Business Registration

  • Law Firms and Legal Service Providers
  • Accountants and Business-Managed Services
  • General Trading
  • Import-Export
  • Online Marketplaces
  • Processing of Food
  • Warehousing and Storage
  • Supply Chain Management Companies
  • AI Startups & SaaS Platforms
  • Cloud Services
  • Metal and Steel Manufacturing

What are the Compliance Requirements for Sohar Free Zone Company Registration?

The list of compliance requirements for Sohar Free Zone Company Registration is as follows:

  • Apply for business license renewal within 30 days of the current 1-year validity.
  • Update your office’s lease agreement.
  • Maintain the shareholder agreement, general manager, and board resolutions.
  • Update the FZ authority if there’s a change in the ultimate beneficial ownership.
  • Notify the authorities if there’s a change in the entity’s shareholders or structure.
  • Prepare balance sheets, P&L accounts, and cash-flow statements.
  • Register for VAT if you cross the prescribed threshold.
  • File and submit the annual corporate tax returns within 4 months of the year-end.
  • Report quarterly VAT returns with prescribed deadlines.
  • Maintain proper VAT invoicing and payment compliance.
  • Enrol with the Customs Authority if you’re planning to import or export.
  • Annual tax return filing irrespective of income.
  • VAT registration if taxable income is above the threshold.
  • Align your operations within the scope of your business license.
  • Maintain the minimum balance in your corporate bank account.
  • Coordinate with FZ and tax authorities if there’s an audit.
  • Obtain approvals before share transfers, business activity changes, or GM appointments.
Sohar Free Zone Company Registration

Want 100% Foreign Ownership in Sohar Free Zone?

Start your company in Sohar Free zone with Enterslice experts.

  • 30-Minute Expert Advisory
  • 100% Digital Process, No Physical Visit Needed

Why Trust Enterslice for Sohar Free Zone Company Registration?

With a proven experience of over 15 years, we have successfully registered thousands of companies in the top Middle East economies like UAE, Oman, Saudi Arabia, and Egypt. From application filings to end compliance, get expert support for a seamless business setup experience. The key reasons to choose Enterslice for Sohar Free Zone Company Registration are as follows:

  • Registered 671+ Companies in Sohar Free Zone
  • 99% Success Rate, Best in the Industry
  • 0% Personal Tax Advantage
  • 1 Dedicated Sohar Free Zone Company Setup Specialist
  • 24/7 Cross-border Documentation Assistance
  • 100% Bank Account Opening Coordination
  • 0% Import/Export Duty
  • Strategic Access to GCC, Asia and Africa Markets

Frequently Asked Questions on Sohar Free Zone Business Setup

Although not mandatory or required by the Omani company law, for the Oman Sohar Free Zone business formation. However, you may still need the services of a corporate service provider for opening a corporate bank account.

Businesses in the Free Zone can enjoy a tax break of 20-25 years after incorporation, once you register for a company. So, it's a 0% corporate tax, personal income tax, or import duties. Value-added tax is also zero-rated on supplies within the zone and a reduced 5% on goods supplied to Oman’s mainland.

A company in the Sohar Free Zone will help you: 1) establish your business in the competitive market; 2) attract attractive financial benefits like a tax exemption for over 20 years; 3) no requirement for appointing a local director as company partner; 4) ready-to-use offices and warehouse facilities; and 5) no customs duties within the free zone.

Yes, you can form a company in the Sohar Free Zone as a non-Omani resident. Currently, there are no restrictions on most business activities for foreign investors applying for company registration from their home country. You don’t have to travel to Oman to operate your business entity.

The general corporate tax rate is 15% for most foreign entities with PEs in the Oman mainland region. However, there’s a reduced rate of 3% that applies to SMEs with a capital of USD 130,000, employees between 1-15, and a USD 260,000 annual turnover or less.

Currently, there’s no VAT if you operate in the free zone region on most supplies. However, the standard 5% rate will apply if you have business operations with the mainland businesses.

A Free Zone limited liability company (LLC) is better if there is more than one member, and a Free Zone Establishment (FZE) for single entrepreneurs. Both structures offer complete business ownership with tax incentives and 100% earnings repatriation.

Yes, all free zone LLCs, branch offices, and FZEs are required to file annual returns even though there are no tax liabilities for 20-25 years. The return needs to be filed irrespective of the annual turnover threshold.

The minimum capital for a company set up in SOHAR Free Zone is USD 52,000, which should be declared in the Memorandum of Association of the company. The same amount doesn’t have to be paid up at the time of incorporation.

No, you can set up a business in the SOHAR Port and Freezone with just a virtual address, as restricted by the free zone authority. Foreigners are required to obtain a flexi-desk, co-working, or private office lease for business operations.

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