Oman Legal System Designed to Attract for High Class Business Opportunities
Formation of SOAC and SOAG
Oman legal system is designed in such a way to attract the foreign person for the high class business opportunities in the country. All these foreign investments are basically governed by Commercial companies'(Penney,2008) laws which provide five type of business entities and the mostly commonly in use are SOAC in which the shares are not offered to the public parties and are not open for the subscription and If a company has to be converted from SOAC to SOAG form, there should be 40% shares issued to the public parties under the Muscat Securities Market for listing and trading. The minimum requirement of the capital for the formation of an SOAC Company in Oman is 50000OR and to convert it to SOAG labeled company it should must be increased to 2 million OR and this requirement can be varied based on the nature of the company and the percentage of the shares that are owned by the foreign parties. This huge increase in the capital can be done in the form of mergers and acquisitions in the way formally described in the legal framework of Oman. Addition to all this the bonds offered must be of same nominal value and must be provided with similar terms and conditions and must not be exceeding the total share capital that is issued by the company.(Meese,013)
Merits:
A minimum of three stockholders and an investment of RO 150,000 are required for a SOAC. The SOAG needs at least of 5 and a max of 12 members in the firm, whereas the SOAC requires at least of 3 and a maximum of 12 director's .SOAG has a minimum capital of RO 2 million, with the founders having to contribute for 30 to 60% of the stock. Every investor's responsibility is restricted to the amount of money they have invested. SOAG is an open joint stock company that simply means the stocks of the company are readily available for the secondary market for the purpose of trading but as a con of this type of company the liability of the decrease in the company debt will be directly on the stakeholders of the company and they have to deal with it while on the other hand in SOAC type of companies(shipton,2007) of Oman the stock of the company is not open for the secondary market and the transfer of the shares of the market is performed on the grounds of the rights which were belongs to the preemptive era of the other shareholders of the company.
Business Ideas in & Investment Opportunities in Muscat Oman
The legal framework of Oman is based on the principal of Shariah law which is the backbone of Islamic law, while this legal framework is administered through wali which is associated by judge. Legal framework of Oman also ought to be complex ones in many ways hence it always strive to give relief base on fair decision by this judicial system though in Oman religious laws are mixed up with the regional tribal laws which directs many laws to sought out problems according to situation. Though laws regarding to commercial matters are being borrowed from other parts of worlds alike of Europe and Middle East which lay down a structure for commercial subjects. Oman legal system is purely based on the teachings of Islam and also directs that no law will prevail against the teachings of Islam. Hence the royal directives made entire judicial system of Oman including the civil courts and magistrate under the ambit of ministry of justice. Supreme Court is the most authoritative and highest court in Oman while many regional courts are located in many cities which deal with the matter which appears in first instance regarding criminal matter and also civil cases alike of family and inheritance one.
Small Business Ideas In Oman
Legislation
Legislation in Oman are divided into two parts, one is primary legislation which are the directives of royal orders through royal highness and are printed in official gazette. Though the other one is secondary legislation, they are the orders which are directives of ministry and this authority to ministry is given by a royal order.
The court language in Oman is Arabic and all documents which are presented in court for evidentiary purpose in other language must be accompany with their translation in Arabic language. In Oman regions which are populated one are divided into 61 district and each district is governed by a governor who is responsible to look out all the disputes(N,1995) among that district hence also for maintain law and order. Though these walis are authorized under the ministry of interior and all cities in such district have framework of courts and qazi's. The Majlis-e-shura in Oman consists of 84 members who come from election, this assembly made a bond between the people and ministries. These assemblies overlook all the drafts and legislation made by the respective ministries. Hence its authority is also limited as they are not allowed to overlook any matter regarding security and foreign matters. Other house is Majlise Dawla(Rasheed,2021) who is responsible for all critical issues in country and consists of 71 members.
In Oman supreme court is the highest court and have a appellate authority among all the court hence it can review all the decision of lower courts in country. Hence there are total 6 appellate courts and 45 primary courts which overlook matters regarding shariah and civil nature. While court of first instance constitute lowest level in hierarchy. While the country runs on the principal of legislation , executive and judiciary among which legislation makes laws , executive imposed that laws and execute the orders and judiciary overlook all the matters according to law.
The public authority of Oman for the protection of consumer rights in the market was developed in 2011 by the royal order that was done to support the falling market of consumer in the Oman that was on the edge of chaos. The main and the objective purpose of this act was to keep in balance the fluctuating prices of the stock in the market and to guarantee the fair (belwal, 2020) treatment of the stakeholders of the company to the consumers. Other objectives of the act includes developing awareness in the consumers on the general matter of the dealings and to find the best solutions for the complaints that were registered by the consumers specially for that time and later. The monopoly system was deemed after the enactment of these rules of the consumer right in the Oman.
The main functions of the act includes the supervision of the implementation of the general polices of the Oman on the consumer protection in accordance with political authorities of the country and also the administration of the structure and the programs that are necessary for the more effectiveness of the consumer protection act in the country. It includes the surveys that should be conducted in the different markets to get a chart of the consumer related issues existing in the market. There should be working on the promotion and the development of the market in the present time. There will be more variety that will be offered to the consumers at prices ranging from the lowest to peek levels. A competition must be there in all the products present in the market to break the monopolies of the companies in the company regarding to that specific product that can be harmful for the entire country and the general awareness in the public will be spread be different means of communications. The cooperation of the international companies will be appreciated and also promoted in the country in the meantime. The inspection of the market will be done on time to time basis to make it confirm(younes,2018) that the perfect quality goods are delivered to the consumer on a reasonable prices. The collaboration of all the states with in the country will be promoted for the streamline of the exertive and authoritative tasks and all will be assisted for the achievement of the goals described in the consumer right protection act in the sultanate of Oman.
Small Business Ideas In Oman
· Tourism & Travels:
· Event Management:
· Technology Based Startups:
· Grain Farming:
· Vegetable Farming:
· Restaurants
· Filling station:
· On road servicing agency:
· Transporting Business: