Sohar Free Trade Zone

verified by : Andrey Ovchinnikov

28 May 2024

The Sohar free trade zone, established in 2010, has proven itself attractive to businessmen and investors for the purposes of starting a business and buying property. Tax incentives, low prices for licenses and company registration, favorable office lease, investor visas for 2 years and a range of other benefits have led to an increasing number of people choosing Oman as a safe haven, relocating with their families and businesses.

Benefits of a company formation in Sohar

  • Foreigners are permitted to fully own established companies
  • Up to 25 years of corporate tax holiday
  • Absence of import duties
  • Zero re-export duties
  • 0% personal income tax
  • Up to 30% discount on General Trade License
  • Discounts on registration fees
  • One-stop-shop for business setup services - licenses, registration, visas, and bank account opening, etc.
  • Low investment requirements
  • Remote company registration
  • Proximity to Sohar Airport
  • Competitive office rent
  • Convenient location between Muscat and Dubai
  • Variety of logistical infrastructure
  • Free trade agreements with the USA, Singapore, and Europe

For traders and suppliers, Sohar Free Zone offers optimal access to regional and global markets. 

Sohar Port is:

  • A major logistics hub designed for the largest ships in the world;
  • Channels for import and export;
  • Various types of cargo, including container shipments,
  • A crossroads of sea routes connecting the markets of the Middle East, India, and East Africa.

Sohar Freezone is a free trade zone covering an area of 4,500 hectares with a total investment of 27 billion US dollars. It is a gateway to the Gulf countries, offering opportunities for investment and business operations in a region with a government that is friendly to foreign entrepreneurs.

Types and cost of licenses

In the Sohar Free Zone, you can obtain the following types of licenses:

  • Industrial License - 385 OMR
  • Light Manufacturing License - 385 OMR
  • General Trade License - 3,000 OMR
  • Service Provider License - 560 OMR
  • Logistics License - 385 OMR

Licenses need to be renewed annually.

Business activities

Sohar Free Zone caters to various economic sectors, including:

  • Petrochemical Industry
  • Steel, Iron and Aluminum Industry
  • Plastics
  • Auto Parts
  • Ceramics
  • Furniture
  • Grains

Facilities and infrastructure

The development plan of the Sohar Free Trade Zone in Oman covers 4500 hectares, with the first phase of 500 hectares already 64% occupied. The zone offers a plethora of facility solutions, including warehouses, industrial and logistics land for lease, and office spaces for rent.

The Sohar Free Zone is connected by highways to the United Arab Emirates and Muscat (220 km to Oman's capital) and has road links with Saudi Arabia, ensuring quick and easy transportation and logistics.

The Sohar Port free zone is capable of accommodating very large vessels. The port handles different types of bulk: dry, break and liquid. It is strategically located between India and the GCC countries.

Sohar free zone company setup procedure

  1. Submit an application: Apply for company registration at the free zone office or online.
  2. Prepare documents: Gather the necessary documents.
  3. Pay fees: Pay the required fees.
  4. Receive license and registration documents: Obtain your license and registration documents.
  5. Apply for visa: Arrange for your visa.
  6. Open a bank account: Set up a bank account.

You can complete all these steps quickly with minimal effort.

  1. Get in touch with Emirabiz experts to schedule a free consultation where we will discuss your situation in detail and help you choose the type of license, company structure, and name that complies with legal requirements.
  2. Send us a copy of your passport and other required documents, and we will submit the application on your behalf. The registration process is remote and takes about 2 weeks.
  3. Visit Oman to collect the incorporation documents, process your visa, and open a bank account (this takes no more than 5 working days!).

Cost of starting a free zone business in Sohar

The cost of registering a company includes:

  • expenses for commercial registration fees of 1,050 Omani rials,
  • purchasing a license,
  • obtaining investor visas, and other expenses. 

The cost of opening a bank account with Emirabiz is $4,000.

Our company's experts will provide you with more detailed information about business setup.

One-stop-shop services

Sohar Port and Freezone acts as a centralized hub catering to clients' needs who can get everything they need to establish and run businesses with utmost efficiency at one place:

  • To register a company
  • To obtain a license
  • To obtain environmental approvals
  • To submit applications for electricity, water, and other utilities
  • To get labor permits
  • To obtain visas
  • To receive tax exemption certificates
  • To open a bank account

Have you got any more questions? Feel free to call us! Emirabiz will guide you through the entire process of establishing your business and adjusting to life in Oman.

Benefits of Sohar Free Trade Zone company

  • Zero corporate and income tax
  • No duties on imports and re-exports
  • 100% foreign ownership of the company
  • Repatriation of profits and capital
  • Simple accounting with minimal reporting and no audit
  • Company registration takes 2 weeks
  • 2-year residency visa
  • No need to stay in Oman to maintain resident status
  • Quick opening of bank accounts in USD, EUR, CNY, OMR, AED

Start your business in Sohar Free Trade Zone today

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