Tips and Strategies to Setting Up Your Company

1. Choosing the Business Entity Once you've decided to setting up a business in Oman, you'll need to decide whether to form your business as a separate legal entity, and if so, what that entity will be, and what are some of the other steps you'll need to take to get up and running. Sole Proprietorship: Single owner businesses sometimes choose to operate as a sole proprietorship. In this situation, the business essentially operates as an extension of the owner. The profits and losses of the businesses will be accounted for on the individual tax return of the owner. This form of business has the obvious advantage of simplicity in that there are no separate corporate or partnership formalities to be followed. Tips and Strategies to Setting Up Your Company

2. General Partnership: • Two or more individuals who own a business in Oman may elect to form a General Partnership. In a general partnership, the general partners determine how they will share profits and losses of the business, and enter into a written partnership agreement documenting these shares. The profits and losses of the general partnership then flow to the tax returns of the individual partners in accordance with the ownership percentages that are set forth in the partnership agreement. The partnership itself is not subject to any separate income tax. • Limited Partnership: • The Limited Partnership form of business is similar to the General Partnership in that profits and losses are distributed to the partners and flow through to the tax returns of all partners in accordance with the percentages the partners determine in the partnership agreement.