MUSCAT: The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) will shortly launch measures aimed at enabling local business owners to either regularize or liquidate inactive or dormant businesses that serve as a cover for the so-called ‘hidden trade’ phenomenon prevalent in the Sultanate.
Starting from tomorrow, June 15, 2021, the Ministry will make available a package of facilities to enable owners of commercial companies to either cancel/liquidate the commercial registries (CR) of businesses that are dormant. Such enterprises can either be liquidated for a year or merged for a period of 6 months, the Ministry stated.
“The new procedures aim at supporting the companies to correct their legal status, encouraging owners of multiple commercial registries (CR) to liquidate or the merge their businesses, thus enhancing the government’s efforts to combat the phenomenon of the hidden trade, improving the business environment, maintaining market competitiveness, and supporting small and medium enterprises development plans,” said the Ministry. “They aim to enable entrepreneurs to cancel old inactive commercial registries through a package of facilities and fee exemptions.”
The hidden trade phenomenon, according to the Ministry, contributes to a number of negative economic and social consequences. It compromises the efficacy of general and micro economic policies, disrupts the labour market and Omanisation policies, and contributes to unfair competition that impacts the performance of small and medium-sized enterprises (SMEs).
The number of new commercial registries recorded from January 1 to June 10, 2021, totaled 8,447.
Fees for liquidation will be limited to RO 50, the Ministry said, noting that all relevant government penalties and fines will be waived as well. The liquidation request can be submitted electronically through the “Invest Easy” electronic portal or through Sanad Service Centers. Applications should include a notice announcing the commencement of the liquidation process, duly approved by the owner, along with a copy of the minutes of the shareholders/partners meeting.
Further, in accordance with the Commercial Companies Law issued by Royal Decree 18/2019, applicants can request for the completion of liquidation procedures after six months from the date of the announcement in the Official Gazette.
As for procedures for merging commercial registries, all such requests can be submitted electronically through the “Invest Easy” portal or via Sanad Service Centers, along with a copy of the merger announcement published in a local newspaper. In accordance with the Commercial Companies Law, the applicant shall wait for 30 days before the approval is granted.
Transfer of ownership of the commercial registry from one owner to another, as well as transfer of the residency of expatriate labour to the holder of the new registry or partner, can be completed against a payment of 200 per commercial registry regardless of the number of expat labour. The previous fee was RO 316.
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