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.
Incentives & Advantages
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.