OMAN COLLEGE OF MANAGEMENT & TECHNOLOGY

DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SCIENCES

Halban
Sultanate of Oman
November 2020

203202* – Company Accounting

ASSIGNMENT

Procedure to start a company in Sultanate of Oman

Student ID:

202012015

Name of the Student:

Hajar khamis alrejebi

Instructor

Dr. BALAMURUGAN MUTHURAMAN

Introduction:

Although establishing a company does not necessarily require you to possess a high academic
degree or previous experience in corporate management, nor is it necessary to own capital, yet it
is not that easy.

The process of creating a company involves working on a lot of stages and in each stage a lot of
details and procedures, but surely all of them are within reach.

What are these stages that must be worked on? What are the details and procedures included in
each stage?

In this topic, we will get to know the details of establishing a company step-by-step and the
procedures involved in each stage from the beginning until the establishment and actual launch
of the company.

 Steps to establish a company:

1 - Start with yourself:

It is imperative that you start with yourself and identify some important matters that will
determine your path in the following stages.
For example, why do you want to start a company? What drives you to do that? Do you
have some capital and want to invest it, do you want to get an additional source of
income, or do you want to get rid of the routine of the job and commit to the daily work
of eight hours a day six days a week.

It is not just the matter of determining the reason for the establishment of the company, it
is necessary to ask yourself more questions that will help you get the right start.

 What skills do you have?

 What aspects or areas do you prefer to work on the most?
 What areas do you have good experience in so that you can invest your expertise?
 How much financing can you provide for the company in the first stage?
 How much money is needed for the company?
 Do you have a clear vision of how to fit in between your personal and professional life
and the time you will spend working on the company?

An explicit answer to these questions will give you a clear vision of the stage you are
currently in, and whether you are really ready to go through this experience, and thus
know if you should continue with what you plan or stop doing it and address weaknesses.

2 - The idea of the project .. What will the company do?

It is a good idea to test the idea that you want to work on, there are many strategies that
can help you test the idea and then make sure of its usefulness. You can ask people
directly, use questionnaires and forms, whether online or on the ground, or conduct
research and marketing studies, or Feasibility study for the company.

3 - Market study:

Market study helps you achieve a deeper and comprehensive understanding of the
market, competitors, the public and customers. You will know who your competitors are,
what are the problems they face and how to overcome them, who are your customers and
customers who will buy from you, what are their needs regarding the product or service
that you provide, do they need things other than It is present in the market and if
competitors offer a product or service that is deficient, thus an opportunity for you to fill
that deficiency.

4 - Consult others and listen to their opinions:

Giving small groups of users the option to try a product or service before its official
launch in the market is an excellent option to ensure the feasibility of this idea of the
product or service, as you can hear the opinions of neutral people and know their
experience with the product and their perception of it.

5- Official documents and documents:

Even here, you are supposed to have a clear vision of the company that you intend to
establish, what services or products you intend to provide, in addition to studying the
market, the feasibility of the idea you are working on, and even conducting initial tests on
your services or company products. So now you are about to officially launch your
company.
 But before the actual launch of the company, some formal steps and procedures are
necessary, This would or provide you with the legal cover that will protect you from any
risks that may threaten the company and the trademark that you intend to establish, and it
protects your commercial interests legally, and in case you encounter any problems, you
can formally claim your rights, in addition to protecting the company’s data and
information, and even protecting Company name and prevent others from using it or
abusing it.

6- Writing a business plan for the company:

The business plan is like a roadmap for the company you are working on, showing and
explaining all the details of the work starting from the first moment of making the
product (in case the company sells products) or the service (in case the company provides
services) until the last stage in which the product or service is provided To the client.

The most prominent steps that should be included in the business plan:
 Introducing the company and its services or products.
 The company's scope of work, which includes matters such as management and work
team, and the company's goals and vision.
 Company structure and divisions.
 Study and analyze competitors.
 The vision for the development and growth of the company.
 The financial side of the company.

The business plan should include these aspects as necessary and with full details of each
aspect. In addition to any additional matters required by the nature of the company and
its work.

7 – Finance:

There are many ways in which it is possible to obtain financing for your company, but
that does not mean that it is easy, unless you have sufficient capital to finance your
company, at least in the early stages and until you start making profits.

8- Development of the product or service:

Once you have implemented all the previous steps in the journey of establishing your
company, that means that you have come a very important step in the journey, and it is
good to move to another stage in which you focus on the value provided by the company,
develop this value and increase its effectiveness in the eyes of customers and customers
of the company, which means making the product.
 This stage includes many details based on what you want to provide a product or service,
in the case of products, will you import ready-made products from abroad, for example,
or will you deal with a factory in your country to offer you these products and you sell
them, or it may be you who will manufacture these products after purchasing the
materials Required primary and industry equipment as well.

9 - Team work:

Whether you are working to establish a small, medium or large company, you need
someone to help you with your business, you may need full-time or part-time employees
with you.

 Determine the goal that you want from each person who will work with you, what are the
tasks that will be assigned to him, and therefore what skills, competencies and
experiences he must possess?
 Follow formal recruitment mechanisms, to avoid hiring the wrong people.

10 – Workplace:

The company needs a workplace, this place may be an office, a group of offices or a
store, depending on the nature of the company and what it will provide and the work
team.
To choose the right place for your company, you have the following:

 Ensure that the location is appropriate for the company culture, image, brand and image
in the eyes of customers and clients.
 Make sure the location is convenient and close to or easily accessible to the largest
segment of your audience and customers.
 External appearances today are very important for the company or project, and the place
where the company is located says a lot about the nature and image of the company.

11 - Marketing and sales:

Marketing is one of the important stage as well, and its importance is no less than any of
the previous stages, and accordingly the success of your company and the project you are
working on will depend. Good marketing is what people know about your project and
your company and thus get sales and then profits, and without sales, no profits, and
without profits you cannot continue .
 You must have a marketing strategy for the company at every stage of its stages, there are
many forms and marketing strategies that you can rely on, in any case, and most likely
you will need a marketing specialist within the company's work team

The most important things to keep in mind when developing a marketing strategy:

 Define your audience and customers you want to target precisely and clearly, and know
what their needs are and what they are looking for.
 Study the market well and analyze competitors' activities to determine the best, most
efficient and effective marketing options.

12 - After marketing .. Development and growth:

The development and growth process is part of the company's marketing strategy. Often if
you can build an effective and successful marketing strategy it is easy for you to develop the
company and follow a correct growth strategy.

Growth can take place in many forms, such as expanding into new markets, launching new
products, developing existing products or services, improving customer experience,
increasing the company's market share, attracting more customers and achieving more sales,
and much more.

_ The company formation process was still a challenge.The matter for anyone wishing to open a
company activity in Oman is a set of steps that must be followed; While various types of
companies can be established in the Sultanate, the most common type in the Sultanate is limited
liability companies.

_ When registering in person, the first step is to go to the commercial registrar at the Ministry of
Commerce and Industry. By doing this, the business will be able to check the availability of the
chosen company name, either in person or via the Internet. The applicant will submit a
completed application form, along with the supporting documents to the Ministry of Commerce
and Industry. Among the additional required documents are a copy of the passport or identity
cards of the shareholders, the signature form of all authorized persons, the company's standard
registration forms and the articles of incorporation, and requests for special licenses, which may
differ according to the nature of the company's business. Finally, a Certificate of Initial Deposit
of the share capital from the bank must be presented; Note that the company registration process
actually takes about three days to complete.
_ Once all the required documents are submitted, the applicant receives a list of fees, including a
fee of 40 Omani riyals (104 US dollars) to register the company for five years, a fee of 128
Omani riyals (332 US dollars) for registration with the Chamber of Commerce, and a fee of 15
riyals. Omani ($ 39) to register with Muscat Municipality.

*Steps to establish a company in Oman:

_ Choose a name for the company and go to the Ministry of Commerce and Industry to verify the
possibility of using this commercial registered parent name.

_ Submit the company incorporation application form.

Prepare the necessary documents, which include:

-personal identity card and a copy of the passport.

- Request to obtain a license.

-Company registration form.

-Memorandum of association, a document from the bank to prove the capital deposit.

*Company registration request:

_ The conditions for registering companies vary according to their types.

_ He must present to any company a copy of its articles of incorporation signed by all of its
partners.

_ The application for registration must be preceded by the reservation of a trade name for the
company.

_ To bring copies of the civil IDs of the company’s partners and authorized persons to be
submitted with the registration papers.

*Types of companies in Oman:

1- Solidarity company:

It consists of two or more persons, and all partners are responsible for the company's obligations
and debts. The company must be registered with the commercial registry upon incorporation.
There is no minimum share capital.

2- Recommendation company:
A simple partnership company consists of two types of partners:

General Partners: Those who manage this company and take care of its debts.

Limited partners: those who do not have the responsibility of managing the company, but
share their capital, and are obligated to pay the company's debts according to the amount of their
share in the company only.

3- Public shareholding company:

Divides its capital into shares of equal value, and each shareholder is responsible according to
the amount of his contribution to its capital. The capital may not be less than two million Omani
Rials, or half a million Omani Rials in the event that the company was established by
transferring from another type of company to a public shareholding company. The number of
founders shall not be less than three persons.

4-A closed joint stock company:

What applies to the public shareholding company applies to it, except that its shares are not
offered for public subscription.

5- The company is limited in liability:

It consists of two people at least and fifty people at most. Each person is responsible according
to the value of his share in the company’s capital. It divides the company's capital into shares of
equal value. There is no minimum for it.

6- Joint venture company

The joint venture company consists of at least two persons, and the company does not have legal
personality and is not subject to registration and licensing procedures. In order to guarantee the
rights of the partners in the limited partnership, the company contract specifies their obligations
and rights and specifies how to distribute their profits and losses.

7-Holding Company:

This company participates in establishing other companies or owns shares in them, works to
manage them, lends them, and provides the necessary support for them. Its capital is not less
than two million Omani Rials.

8-One-person company:
 It is owned by one person and it is limited in liability. The founder determines the capital to be
invested and the company's activity in accordance with the laws.

_ Advice on procedures for establishing companies in the Sultanate:

 Businessmen wishing to start establishing a company belonging to the category of small

and medium companies in the Sultanate must invest their money and resources to ensure
compliance with the regulatory requirements in force in the Sultanate.
 Seek advice and help from a lawyer.
 You must prepare a comprehensive agreement for all shareholders for all partners.
 Prepare yourself for a lengthy process to scale up the business and manage all required
licenses.
 Use your time and capital to undertake the needs assessment and market studies for
proposed business activities, as well as to prepare a comprehensive business plan.

_ References:

- https://www.google.com/amp/s/www.zawya.com/mena/ar/story/amp/
ZAWYA20180314133758/
- https://www.mohamah.net/law/ ‫عمان‬-‫سلطنة‬-‫في‬-‫شركة‬-‫تأسيس‬-‫وشروط‬-‫إجراءات‬/
- https://www.magltk.com/launch-business-guide/
- https://www.google.com/amp/s/tijaratuna.com