Business

Oman begins implementation of e-commerce regulations

E-commerce activity is set to gain new momentum in Oman.
 
E-commerce activity is set to gain new momentum in Oman.
MUSCAT: The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) has started the implementation of the regulatory provisions for e-commerce under Ministerial Decision No. 499/2023, after a period of 90 ninety days from its publication in the official gazette.

This regulation is part of the national plan for e-commerce with the aim of establishing a legal and regulatory framework for the development and enhancement of e-commerce. It seeks to formalise local e-stores, facilitate access to them, regulate online buying and selling processes, reduce online fraud and scams related to e-commerce. Additionally, the regulation is introduced to align with countries that are advanced in regulating e-commerce, overseeing online stores, and imposing administrative penalties on violators.

Azzah bint Ibrahim al Kindiya, the Director of the Commercial Affairs and E-commerce Department at the MoCIIP, pointed out that the regulatory provisions for e-commerce have been introduced through collaboration and partnership between the MoCIIP, the Ministry of Transport and Communications, Information Technology, the Royal Oman Police represented by the General Directorate of Customs, the Consumer Protection Authority, the Central Bank of Oman, the Telecommunications Regulatory Authority, Asyad Group, and the ITHCA Group. This reflects the ministry's commitment to involve all relevant entities in the field of e-commerce. The private sector was also engaged to understand their challenges, address them through the regulations, and adopt their ideas and suggestions.

Al Kindiya emphasised the requirement for obtaining a licence to engage in e-commerce by submitting an electronic license application through the “Oman Business Platform.'

The regulations specify several conditions for obtaining the license for individuals who do not possess a commercial record. The licence applicant must be an Omani citizen, and the age of the license applicant should not be less than 18 years.

She added that for commercial companies to obtain the license, they must be registered in the commercial register. Non-Omanis can engage in e-commerce according to the provisions of the Foreign Capital Investment Law. Individuals or commercial companies must also obtain the approval of the relevant authority if the nature of the activity requires it.

The licence is issued by the Commercial Affairs and E-commerce Department at the Ministry and has a duration of one year, two years, or three years based on the applicant's request. The licence specifies the electronic means or online store through which the licensee conducts their authorised activity. License holders are required to apply for license renewal upon its expiration. In case of rejection, the applicant can appeal to the Minister of Commerce, Industry, and Investment Promotion within 60 days of notification.



The appeal must be decided within 30 thirty days from the date of submission, and non-response within this period is considered a rejection.

To register for an e-commerce license in Oman, individuals must initially obtain a commercial registration as a freelancer if they do not possess any other commercial registration. The process for registering as a freelancer involves accessing the Oman Business Platform through the link business.gov.om, selecting the service to create a new commercial registration, choosing the legal form as freelance business, filling in the commercial registration details, electronically signing the application, and obtaining the commercial registration.

Subsequently, to acquire the e-commerce license, individuals should access the Oman Business Platform at www.business.gov.om. Under Business Affairs Management, they must update commercial registration details, add the desired e-commerce activity, and navigate to licenses (commercial registration licenses). After selecting the registration, they can click on ‘Submit License Application,’ choose ‘Yes’ to license the activity as e-commerce, specify the desired activity, and proceed by clicking ‘Next.’

For individuals, the next steps include selecting activity locations, adding the address of the e-commerce activity (website link), clicking ‘Submit License Application,’ and completing the application form, attaching the required documents, and paying the fees to obtain the license automatically.

Similarly, companies seeking an e-commerce license need to follow a parallel process. They should access the Oman Business Platform at www.business.gov.om, update commercial registration details under Business Affairs Management, add the desired e-commerce activity, and go to licenses (commercial registration licenses). By choosing the registration and clicking on ‘Submit License Application,’ selecting ‘Yes’ to license the activity as e-commerce, specifying the activity, and clicking ‘Next,’ companies can progress through the application.

For companies, the subsequent steps involve selecting activity locations, adding the address of the e-commerce activity (website link), clicking ‘Submit License Application,’ and completing the application form, attaching the required documents, and paying the fees to obtain the e-commerce license automatically.