Muscat: The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) has urged all institutions and commercial companies to open a bank account in one of the licensed banks in the Sultanate of Oman.
This is mandatory as per the Commercial Companies Law' issued by Royal Decree 18/2019 and its executive regulations issued by Ministerial Decision 146/2021 and Ministerial Decision 412/2023 regarding combating hidden trade.
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The Oman Chamber of Commerce and Industry (OCII) also stresses the need for all commercial institutions and companies to commit to opening a bank account in one of the banks licensed to operate in the Sultanate as per the provisions of the Commercial Companies Law and ministerial decisions to combat hidden trade
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Decision 412/2023 was issued in July 2023 in response to successive appeals from citizens over the past years to stop hidden trade, which has economic and social repercussions on business owners and society.
The Ministry said it wanted to avoid the negative effects of hidden trade on the national economy and local markets, which include cases of commercial fraud, impact on labor market regulations, unequal competition with entrepreneurs and small and medium enterprises, and tax evasion, among others.
MOCIIP is urging citizens and residents to contribute to reducing cases of hidden trade and reporting them.
The hidden trade is seen as enabling a non-citizen (expatriate) to practice business and commercial activities while he is not authorized to do so, through the use of licenses, commercial registers, and approvals issued to the concealed person - be it a natural or legal person (company).
The decision states that every person who becomes aware of any person's conduct of concealed trade must inform MOCIIP of that immediately, which can be also the electronic evidence.
MOCIIP may impose one of the following penalties - striking off the activity from the commercial register or an administrative fine of R05,000 or an administrative fine of R010,000 in case the violation is committed for the second time.
There will be a suspension of the activity for a period of 3 three months, or an administrative fine of 15,000 in the event of committing the violation for the third time, with the activity being struck off from the commercial register, and the activity may not be re-registered except after one year has passed from the date of the cancellation.
The ministry said that the decision to combat hidden trade came as part of the implementation of the executive regulations of the Foreign Capital Investment Law and to create an attractive investment environment in the Sultanate of Oman.
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