Oman corporate banking services in 2023
Since 2003, Healy Consultants Group helps multi-national Clients open multi-currency corporate bank account in the Oman for local companies.
Our team will project the multi-currency corporate bank account opening process, including supervising the injection of statutory paid-up share capital required before Oman company registration though it is likely the bank signatory will have to travel to Oman. Opening a Oman bank account for a Oman company requires strong due diligence and know-how. Learn how our team of experts guarantee corporate bank account approval.
Table of Oman banking problems and solutions
No. Oman banking problem Solution 1. Oman banks always require physical presence as well as the signatory to obtain a residence visa in order to successfully secure a corporate bank account opening. Our Firm will seek banks with branches for non-Oman residents. This might allow the beneficiary to visit at a branch closer to them, or in their home country in some cases. 2. Bank refuses to onboard a foreign company which does not have a physical office in the Oman, or Oman customers or suppliers. If an active Virtual Office is not sufficient for the Oman bank, Healy Consultants Group will open an international corporate bank account with a top tier bank outside Oman.
Healy Consultants Group has a guaranteed corporate bank account approval policy.
3. While some international and local banks offer multicurrency accounts, they often require Clients to open a Omani Riyal account before opening accounts in other currencies.
Payments to and from Omani beneficiaries to be done in the local currency. For example, local Suppliers to be paid in Omani Riyal.
Open a Omani Riyal corporate bank account together with a US$, € and £ corporate bank account, along with e-banking and local Visa debit cards.
Clients who prefer not to open a Omani Riyal account can choose to open separate foreign currency accounts, if required.
4. The majority of Oman banks only provide telephone support during Oman business hours Sunday through Thursday. This is inconvenient for multi-national Clients in The USA or Asia Pacific. Healy Consultants Group staff assist our multi-national Clients with bank communication, regardless of time zones. 5. Global banks continue to tighten corporate bank account opening procedures, their internal compliance departments completing more thorough due diligence of Clients. Consequently, our Clients should expect bank account approval to take a minimum of six weeks. Furthermore, banks now require evidence of proof of business in the country where the company bank account will be, including sales contracts or lease agreement. At the start of an engagement, Healy Consultants Group prepares a quality business plan tailored to our Client’s business and organises the Client’s KYC documents, making the bank’s verification process timelier.
If our Client requires a bank account at short notice, we recommend an immediate Oman solution, if available.
The Oman banking sector
Healy Consultants Group’s summary view
- Oman banking sector has improved post the impact of COVID-19 pandemic as a result of fiscal consolidation. Higher oil prices in the world market further consolidated the gains and brought windfalls for the economy. That said a reversal in the high oil price environment can cause an adverse impact on financial and economic stability.
- There are no foreign exchange controls into or out of Oman. The Omani rial is fully convertible and is pegged to the U.S. dollar (OMR 1 = US$ 2.60). There is no restriction on the repatriation of capital from Oman.
- Oman has a Bank Deposits Insurance Scheme (BDIS) with the current coverage of a reimbursement upto OMR 20,000 (US$52,000). The deposits shall be eligible for compensation if they are savings deposits, current accounts, call deposits, time deposits, Government deposits, trust & pension funds deposits, and other deposits specified by the Central Bank.
- Oman implements FATCA regulations, and requires the disclosure of the beneficial ownership of each corporate bank account opened in the Oman.
- Oman is a participating jurisdiction for Common Reporting Standard and facilitates the automatic exchange of financial account information amongst jurisdictions.
- Oman’s sovereign credit rating in May, 2023 is i) BB (Standard and Poor’s) ii) Ba2 (Moody’s) as Oman banks continue to recover from the impact of Covid-19 pandemic
- Overall, Healy Consultants Group recommends our multi-national Clients’ minimize the funds held with Oman banks.
Key information on the Oman banking sector
- Oman’s banking sector consists of 16 licensed local and foreign commercial banks, two specialized banks and eight Islamic commercial banks. Banks are subject to supervision by the Central Bank of Oman, which regulates and licenses private banks, monitors interest rates, and issues development bonds and notes.
- Some reasons Oman banks give for rejecting new accounts include i) due to security and compliance reasons they are unable to verify new Clients based overseas ii) only opening accounts for entities wholly owned by Omani nationals or companies (i.e.: they will not onboard a company which is beneficially owned by companies not registered in Oman) and iii) no economic substance in Oman.
- On average, Oman banks take two months to issue corporate bank account numbers and e-banking access.
- Most Oman bank branch staff speak Arabic and correspondence and online banking etc may be in Arabic. If required, Healy Consultants Group staff assist our multinational Clients with bank communication. Furthermore, Healy Consultants Group can also provide Bank Signatory and Treasury services to our Clients to facilitate transactions.
- It is important that our Clients are aware of their corporate and legal obligations in Oman and that they timely fulfil the same. Let us know if you require Healy Consultants Group’s assistance to timely and efficiently complete your legal and corporate responsibilities.
Healy Consultants Group fees to help open a corporate bank account in Oman
- For a fee of US$4,950 and without bank signatory travel, our staff will secure Oman corporate bank account approval for a local Oman LLC or branch.
- Our multicurrency corporate bank account opening fees cover the following support services:
- Creating a quality business plan for the Oman banks, explaining the purpose of the business and future banking transactions.
- Securing welcome emails from multiple Oman banks, inviting our Client to submit a corporate bank account application.
- Healy Consultants Group’s banking team completing, on our Client’s behalf, the corporate bank account application forms and collating Know Your Customer (KYC) due diligence documents.
- Over the following weeks, the bank officer reverting to our team multiple times to prepare an accurate, complete multicurrency corporate bank account opening file. When the Oman bank officer is ready, Healy Consultants Group will convene a physical meeting with our Client.
- Following successful completion of the above, the bank officer submits a complete potential customer file to the bank’s Legal and Compliance Department.
- After several weeks, e-mailing multicurrency corporate bank account numbers to our Client.
- Within three weeks, arranging our Client to receive e-banking log in details, including corporate Visa debit cards and cheque books.
Contact Healy Consultants Group for assistance with opening an Oman corporate bank account.