Firms in Oman told to work as per licence norms

Muscat: Companies in Oman have been told to exclude activities for which they have not taken licence from the Ministry of Commerce and Industry. “Legal action including cancellation of registration will be taken against erring traders and investors who indulge in activities other than what they have been registered for,” said a statement from the ministry. Companies that have ceased their operations should take adequate measures for their liquidation in accordance with the law, the ministry urged.

According to Khalid bin Khamis al Masrouri, Director of audit and control department at the ministry, registration of some companies has already been cancelled for not producing bank statements as required by the foreign investment law in the country. “The law mandates that foreign establishments produce bank account details in a period of less than six months from the date of registration of the company with the ministry,” he said. Al Masrouri said that the number of foreign companies and their investments witnessed a steady growth in the last couple of years.

According to figures from the ministry, from 7,992 companies at the end of December 31, 2017 with a total capital amount of RO 3.642 billion, the number rose to 8,811 companies at the end of December 31, 2018. The investments reached RO 3.760 billion during the period. While a total of 638 applications were received for registration in 2018, around 570 were processed and licences issued. At the same time, Al Masrouri revealed that there was an increase in transactions in terms of applications and completion. “This was made possible thanks to the easy and simple method of registration process through “Invest Easy” portal leading to improved investment environment in the Sultanate,” he said.

Al Masrouri said that 1,100 applications were processed in 2018 through the portal. The financial statements and reports of the Board of Directors and presence of representatives of general bodies of 338 joint stock companies were also studied. Of them 226 were normal general bodies, 112 extraordinary founding bodies during the year 2018. The number of Omani joint stock companies increased from 362 with a total capital of RO 8.397 billion till the end of December 31, 2017 to 380 companies with a capital of RO 8.412 billion at the end of December 31, 2018. A total of 18 permits were issued to set up new Omani joint stock companies with a capital of RO 14.233 million during the period from the beginning of January till the end of December 2018, Al Masrouri added.