By virtue of the Decision of the Ministry of Commerce and Industry (“MOCI”) No. 2021/146 the Sultanate of Oman approved its long-awaited regulations (“Regulation”) on its Company Law (“Law”), previously enacted by Sultani Decree 2019/18 dated 13 February 2019.
The Law was the centerpiece of an entire package of corporate legislation including the Law on Investment of Foreign Capital enacted by Sultani Decree 2019/50 dated 1 July 2019, effectively reshaping the Omani foreign direct investment landscape. The impact of COVID-19 shortly afterwards slowed down the implication of these large reform efforts in the Sultanate. However, now, the Regulation provides further clarifications on the application of the Law.
The Regulation with its 96 articles is less comprehensive than the Law stretching over 312 articles and puts great emphasis on exercising corporate administrative processes through electronic means provided by MOCI. The Regulation inter alia furthermore contains provisions regarding the share capital of companies, the processes around the transformation and liquidation of companies as well as provisions regarding closed Omani joint stock companies (SAOC).