Recent updates to Omani corporate law have introduced significant changes for businesses operating in the country. These updates include a new requirement for companies to authorize and delegate authority for the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) filings, a mandate for all companies to hire an Omani employee within one year, and new regulations for identifying and recording ultimate beneficial owners (UBOs). These changes have important implications for businesses, and it is essential to be aware of and comply with them.
This article provides an overview of the three updates to corporate requirements in Oman.
Designated Persons for MOCIIP Filings
A significant update has been introduced to the MOCIIP portal. Prior to filing any application through the portal, an authorized manager and signatory of an Omani company must now authorize and delegate authority to the person who will file the application.
This delegation can be granted for various matters within the MOCIIP portal and can be limited in time. The maximum duration for a delegation is five years, and it can be terminated at any time by an authorized manager and signatory.
The process for granting authorization is as follows:
- Access the MOCIIP website: Visit the Oman Business Platform - e-Services.
- Login: Use your ID card to log in and ensure the Omani company’s details are displayed.
- Choose "My CR Delegation Rights": This option is located under "Manage a Business" in the "Commercial Registration" section.
- Select delegations and delegatee: Choose the desired delegations and enter the ID card details of the person who will be delegated.
Requirement to Hire Omani Employees
The MOCIIP Investment Centre has also recently introduced a new requirement for all companies in Oman to hire an Omani employee.
For new companies, after establishing a company in Oman, the authorized signatory will receive a text message notifying them of an obligation created against the company’s commercial registration certificate (CR). This obligation mandates that the company hires an Omani employee within one year from the date of the notice.
Existing companies will also be notified of this requirement on the portal. If this requirement is not met within the specified timeframe, MOCIIP may suspend any further modifications to the CR certificate.
UBO Declarations to MOCIIP
The regulation for identifying the ultimate beneficial owner (UBO) (MOCIIP Ministerial Decision No. 424/2023) establishes comprehensive guidelines for commercial companies to maintain accurate records of individuals who exercise ultimate control over the company.
All commercial companies, excluding public joint-stock companies, are required to create and maintain a UBO register of all shareholders who own 25% or more of the company. This register must include detailed information such as the UBO's name, date of birth, nationality, place of residence, and address. If no UBO exists, the highest administrative officer will be considered the UBO for regulatory purposes. Commercial companies must promptly update the UBO Register within five working days of any changes and designate a local representative to coordinate with MOCIIP and other competent authorities. They must also provide any requested data from the UBO Register within three working days.
Additionally, companies must maintain a shareholder register that includes detailed information about each shareholder and their shares, ensuring any changes are recorded within five working days.
The regulation enforces compliance through administrative penalties, including warnings, fines, suspension of activities, or deletion from the commercial registry, with a grievance process available for those affected by such penalties.
Conclusion
These updates have important implications for businesses operating in Oman. It is crucial for companies to be aware of these changes and ensure compliance with the new regulations. Our legal team can provide expert guidance and assistance in navigating these updates and ensuring your business remains compliant with Omani law.
If you have any questions or concerns regarding the new corporate requirements, please get in touch with us.
Social Media cookies collect information about you sharing information from our website via social media tools, or analytics to understand your browsing between social media tools or our Social Media campaigns and our own websites. We do this to optimise the mix of channels to provide you with our content. Details concerning the tools in use are in our Privacy Notice.