Business Setup & Legal Framework

  • Free Zone Company (FZC) – A limited liability company with one or more shareholders.
  • Free Zone Establishment (FZE) – A single-owner company, ideal for individual investors.

Setting up a company involves:

  • Submit Investor Inquiry sheet and get the initial approval.
  • Submit the registration application with required documents.
  • Obtain necessary licenses and approvals.
  • Lease land or facilities within the zone.

The SFZ offers a “One-Stop-Shop” service to assist investors throughout the process.

The OSS is a dedicated service center within SFZ that streamlines and simplifies all investor-related procedures. It brings together representatives from key government entities under one roof to support investors throughout the business setup and operational journey.

The OSS assists with a wide range of services, including:

  • Business registration and licensing
  • Land and facility allocation
  • Approvals from government authorities
  • Environmental permits coordination
  • Visa and labor-related services
  • Utility connection support (electricity, water, telecom, gas)
  • Customs coordination and facilitation
  • Renewal of licenses and permits

No. Investors must lease land, a warehouse, or an office within the Salalah Free Zone to establish a company. Offshore companies are not permitted, as physical presence and business operations are required for registration.

Yes, businesses can modify their licensed activity by submitting an official request and obtaining the necessary approvals. The new activity must comply with SFZ regulations.

Incentives & Advantages

Yes, businesses can modify their licensed activity by submitting an official request and obtaining the necessary approvals. The new activity must comply with SFZ regulations.

Tax Incentives:

  • Income tax exemptions for up to 30 years, reviewed every 10 years.
  • Customs Benefits: Exemptions on imports and exports.
  • Ownership: 100% foreign ownership permitted.
  • Capital Requirements: No minimum capital required.
  • Omanisation: Omanisation rate of 20%.
  • Simplified Procedures: Streamlined processes for land allocation, licensing, and customs.

No. The Free Zones Law does not require a minimum capital to establish a company in the Salalah Free Zone, making it accessible for SMEs and startups.

Infrastructure & Facilities

No. Land within Salalah Free Zone is not available for purchase. Instead, land is provided to investors through long-term lease agreements (up to 30 years, renewable).

Land is allocated based on:

  • The nature and scale of the proposed project
  • Utility and infrastructure requirements
  • Availability within designated clusters (industrial, logistics, food, etc.)

Yes. SFZ offers ready-to-use warehouses, offices, and industrial units for investors who prefer not to build on raw land.

Yes. Any investor planning to construct a facility must obtain a Construction Permit before starting any work. SFZ provides permitting guidelines and technical support through its Engineering & Technical Affairs team.

Costs & Financial Considerations

Costs may include:

  • Business registration fees
  • Commercial register fees
  • Oman Chamber membership fees
  • Land or ready facility lease (charged per square meter annually)
  • Utilities and service fees (electricity, water, security, maintenance)

Fees vary based on the type and size of the facility. Contact the Business Development team for a customized offer.

Sector Focus

SFZ caters to a wide range of sectors, including:

  • Food Processing
  • Pharmaceuticals
  • Petrochemicals
  • High-tech industries
  • Mining and Mineral Processing
  • Logistics and supply chain management
  • Packaging and assembly

Regulatory Requirements

The Omanisation rate in SFZ is approximately 20%, designed to facilitate business operations while promoting local employment.

Environmental permits are required only for projects with potential environmental impact. Low-risk or non-industrial projects may not need a permit but still undergo an initial review.

Once your project activity is defined, the Environmental Affairs Unit will assess whether an environmental permit or Environmental Clearance (EC) is required.

Examples:

  • Permit likely required: Manufacturing, processing, recycling, chemical-based industries
  • Permit unlikely: Administrative offices, trading, warehousing, low-risk assembly lines

Yes. According to Royal Decree No. 38/2025, prohibited activities include:

  • Activities threatening national security or public order
  • Highly polluting industries without control
  • Gambling, illegal trade, or activities against public morals
  • Trading in weapons, nuclear materials, or hazardous goods (without special permits)

Connectivity & Integration

No. While SFZ is not directly integrated with the port, both operate under the Asyad Group. Strong cooperation ensures efficient logistics and smooth movement of goods to global markets.