Oman Client case studies
Security equipment company expands to the Middle East
Our Client is a company from China that supplies and installs Security System equipment including CCTV, Access control and Intrusion Systems. The company also has subsidiaries in Hong Kong, Singapore and Dubai and is currently looking to expand its market share to Taiwan, Malaysia, Philippines Korea, Oman, Qatar and Egypt.
Our Client already has existing customers in Oman, hence, having a company in Oman is an urgent need for them.
Our Client, Lui Chin, contacted Healy Consultants to understand more about the various Omani corporate structures, the company incorporation process and its requirements. As he explained to us about his company’s activities and detailed business plan in Oman, our client engagement director, Ms. Karen Lee recommended setting up a local limited liability company (LLC). This is the most common entity for foreigners who wish to conduct business in Oman due to its simple structure and incorporation process. Healy Consultants also informed our Client that an Oman LLC required at least 30% local ownership, which we would be happy to assist our Client with if needed.
Our Client is interested to open a corporate bank account with HSBC Oman due to its excellent services and facilities. Healy Consultants gladly accepted the request but informed him that HSBC in the Middle East moves very slow for account opening and that he should consider opening a second corporate bank account with Standard Chartered, Arab Bank and Ahli Bank.
Within two weeks, our Client signed Healy Consultants’ engagement letter confirming services required, provided complete due diligence documents and settled our engagement fees via bank transfer. Immediately thereafter, Healy Consultants prepared and emailed our Client a detailed project plan, outlining the necessary steps and estimated completion time.
Healy Consultants prepared the incorporation forms in English and Arabic, and had them signed and apostilled in Hong Kong. Thereafter, we submitted the complete application form to the Oman Ministry of Commerce and Industry to secure an incorporation certificate, showing the company’s detailed business activities.
Before we can proceed with tax registration, the Oman Government must review and approve a lease agreement for office premises. Healy Consultants assisted him to locate an office in Muscat and liaised directly with the landlord to draft a lease agreement for our Client review and signature.
Once the lease agreement is signed, Healy Consultants filed the Declaration of Business Particulars with the Oman Tax Department of the Finance Ministry to obtain a tax registration certificate. The company is fully registered as a legal entity in Oman and is legally allowed to commence business.
Corporate bank account
After the company was successfully incorporated, Healy Consultants prepared complete bank account opening forms and submitted them to different banks in Oman. To increase approval chances, we also drafted a business plan outlining the company’s core activities, financial projection, market analysis and corporate structure.
Furthermore, to satisfy statutory requirements, Healy Consultants also provided an Omani passive nominee shareholder who held 30% of the company shares. The nominee and our Client entered into an agreement to ensure that he has no control over the company’s management. This is important to protect our Client from any potential claims and litigation risks.