Oman Client case studies in 2024

A Saudi Arabian manufacturer of electrical submersible oil well pumps establishes an LLC company in Oman to bid for local contracts

Background

• Our client specializes in research, development and manufacturing of oil well pumps in the GCC region. In addition to the manufacturing, our client also provides oilfield services offering after sales support, maintenance and installation services for all their products.
• Having previously engaged Healy Consultants Group in early 2018 and worked closely with Kunal Fabiani for research in Morocco, our client contacted Kunal in June 2018 to urgently setup the appropriate structure in Oman to enable his Firm to submit a proposal for a local Omani tender contract before the deadline – end of July.
• Since the proposed shareholders and directors of the new entity were Saudi nationals, Kunal suggested a simple general trading LLC would be the optimum structure After expert analysis and deliberations, in mid-July our Client agreed and proceeded to re-engage Healy Consultants Group for the new business setup.

Engagement planning

• Healy Consultants Group prepared and emailed our Client an engagement advancement proposal and the formal invoice including only those services that were deemed necessary to meet the contract deadline.
• Kunal recommended our Client confirm with the tendering institution’s legal department that an entity without license for oilfield services from the Oman Ministry of Oil and Gas (MOG) would still be eligible to submit a proposal.
• Within 1 week our Client reverted confirming that in accordance to the tender contract, if a company is awarded the tender, this company has 30 days to formalize any additional licensing requirements to fulfill the contract.

Company registration

• Kunal immediately liaised with Healy Consultants Omani attorneys to prepare the general trading company incorporation forms and emailed the same for our Client’s signature and courier return to Healy Consultants’ Muscat affiliate office.
• As one of the shareholders of the new Omani entity was travelling outside of Saudi Arabia, the signing of the company registration application was delayed by 1 week.
• Aware of the proximity of the deadline and to expedite the process, Kunal requested Healy Consultants Group attorneys to submit scans of the signed incorporation forms whilst the originals were being couriered to Muscat.
• Upon receipt of the original signed documents from our Client, within 3 days of application submission, Healy Consultants Group obtained MOCI approval and immediately emailed our Client a scan copy of the Certificate of Commercial Registration on 30^th July.

Engagement completion

• Pending the results of the tender, the original Omani corporate documents were safely kept at the company’s Muscat registered address.
• When instructed by our Client, Healy Consultants Group will i) submit a complete quality license application with MOG, ii) assist our Client to locate business premises close to the oilfield where the maintenance and upkeep services would be rendered and iii) submit a corporate bank account opening applications with multiple banks including regional and international banks.

Security equipment company expands to the Middle East

Background

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.

Engagement planning

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 an international bank in Oman due to its excellent services and facilities. Healy Consultants gladly accepted the request but informed him that the international bank in the Middle East moves very slow for account opening and that he should consider opening a second corporate bank account with other international and regional banks.

Company incorporation

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.

Supporting services

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.