+968 9596 3381
Phone Number
[email protected]
Email Address
Mon - Thu: 8:00 - 5:00
Online store always open
Duqm Free Zone Company Setup (2025 Guide): Benefits, Steps & Costs
Duqm Free Zone Company Setup (2025 Guide)
The Sultanate of Oman is rapidly emerging as a global investment hotspot, and at its heart lies the Special Economic Zone at Duqm (SEZAD). Conceived as a mega-project, Duqm is strategically positioned to become a logistical, industrial, and maritime gateway connecting the Middle East, Africa, and Asia. For international investors and businesses looking for unparalleled opportunities, establishing a company in Duqm Free Zone offers a compelling proposition.
SEZAD provides a highly attractive environment, characterized by significant incentives, world-class infrastructure, and streamlined regulatory procedures. If you’re planning to expand your operations or embark on a new venture in the Arabian Gulf, Duqm represents a strategic entry point designed for long-term success.
This comprehensive 2025 guide will walk you through the immense benefits of setting up in Duqm, detail the essential steps involved, and provide clarity on the associated costs. Setup in Oman stands as your expert partner, simplifying your company formation journey in Duqm and ensuring a seamless, compliant, and efficient establishment.
Why Choose Duqm Free Zone for Your Business?
Duqm stands out among Oman’s free zones for its multi-sector investment incentives and strategic access to global trade routes. Key advantages include:
100% foreign ownership (no local sponsor needed)
Tax holiday up to 30 years (extendable)
0% import/export duties
No personal income tax
No restrictions on capital repatriation
Access to Port of Duqm, Duqm Airport & logistics corridors
Fast-track licensing & customs clearance
Land lease at competitive rates
Strategic location outside Strait of Hormuz
Duqm is ideal for industrial, logistics, oil & gas, renewable energy, tourism, construction, and marine-related businesses.
Eligible Business Activities in Duqm
SEZAD supports a wide range of industries. Some of the most in-demand and supported activities include:
Oilfield services & equipment manufacturing
Maritime & ship repair facilities
Logistics & warehousing
Food processing & agro-industries
Construction material manufacturing
Data centers & ICT infrastructure
Hospitality & tourism resorts
Renewable energy projects
Automotive assembly & components
If your business aligns with Oman Vision 2040 or supports local employment and sustainability, Duqm may offer custom incentives.
Types of Legal Entities You Can Register
Businesses in Duqm Free Zone can register under several legal structures:
Free Zone Limited Liability Company (FZ-LLC):
Most common form, can be owned 100% by foreign investors.Branch of a Foreign Company:
No need to set up a separate legal entity.Joint Venture Company:
Useful for partnerships with Omani or GCC investors.
Each type must be registered with SEZAD’s One-Stop-Shop (OSS) and comply with SEZAD’s legal and regulatory framework.
Licensing Categories in Duqm
To operate in Duqm, companies must obtain the appropriate licenses, which include:
Industrial License – For manufacturing, assembling, or processing activities.
Commercial License – For import/export, distribution, wholesale, or retail businesses.
Service License – For consulting, IT, engineering, legal, and related services.
Logistics License – For storage, freight forwarding, and warehousing services.
SEZAD may also grant dual licensing for operating inside and outside the free zone under specific conditions.
Step-by-Step: How to Set Up a Business in Duqm Free Zone
1. Choose Legal Structure & Business Activity
Decide whether to establish an FZ-LLC, branch, or JV, and confirm your business activity is permitted in Duqm.
2. Reserve Trade Name
Submit at least three proposed business names for approval with the Duqm OSS.
3. Apply for Initial Approval
Provide a brief business plan, activity description, passport copies of shareholders, and financial commitment letter.
4. Submit Legal Documents
Prepare and notarize required documents:
Memorandum & Articles of Association
Board resolution
Power of attorney (if applicable)
Lease agreement (office or industrial land)
5. Sign Lease Agreement
Select land or office space within SEZAD. Options include pre-built units or custom plots.
6. Obtain Operating License
Receive your sector-specific license from the OSS.
7. Open Bank Account & Deposit Capital
Once licensed, open a local bank account and deposit any required capital.
8. Start Operations
Begin trading, manufacturing, or service delivery. Compliance audits and inspections may apply, depending on sector.
Have Any Question?
basic
OMR 500
- Company Formation
- Corporate Bank Account
- Office Address
- Power of Attorney
Standard
OMR 1700
- Company Formation
- Corporate Bank Account
- Virtual Address
- Power of Attorney
Gold
OMR 2150
- Company Formation in Oman
- Workdesk Address
- Corporate Bank Account
- Mail Routing
- Secretary
Premium
OMR 3500
- Company Formation
- Address: Private Cabin
- Corporate Bank Account
- Telephone
- Wifi
- Security
- Mail Routing
- 10-15 Business Days
Tax and Customs Benefits in Duqm
Duqm Free Zone companies benefit from generous fiscal advantages:
0% Corporate Income Tax for up to 30 years
No VAT on transactions within the zone
No customs duties on imported goods used inside the zone
No withholding tax on repatriated profits
0% Personal Income Tax for employees
You may still need to register for VAT if selling goods/services outside Duqm or to mainland Oman.
Residency & Workforce Benefits
Investor residency visas are available for company owners and senior management.
No Omani shareholder or partner required for most FZ-LLCs.
Work visas for foreign staff are facilitated through the Duqm OSS.
SEZAD promotes hiring Omanis and provides incentives for companies creating local employment.
Who Should Consider Setting Up in Duqm?
Duqm is ideal for:
Global manufacturers looking to access GCC, Asia & Africa
Oil & gas service providers supporting Oman’s energy projects
Logistics operators seeking multi-modal trade hubs
Construction & heavy equipment firms
Tourism & resort developers
ICT and clean energy startups
Key Sectors of Focus in Duqm:
Logistics & Maritime: Leveraging the Port of Duqm, dry dock, and strategic shipping lanes.
Petrochemical & Heavy Industries: Supporting energy-intensive manufacturing.
Fisheries & Food Processing: Capitalizing on Oman’s rich marine resources.
Tourism & Hospitality: Developing resorts and attractions.
Mining: Exploiting mineral resources in the surrounding areas.
Renewable Energy: Promoting green initiatives and projects.
Why Choose Duqm Free Zone? (Benefits)
Investing in Duqm Free Zone comes with a suite of unparalleled advantages designed to maximize profitability and ease of doing business:
100% Foreign Ownership: Unlike some traditional mainland company structures (though mainland 100% foreign ownership is now also widely available for many activities in Oman), Duqm unequivocally offers 100% foreign ownership of businesses, providing complete control to international investors.
Significant Tax Incentives:
Corporate Income Tax (CIT) Exemption: Companies operating in SEZAD are generally exempt from corporate income tax for a period of 30 years, renewable for additional periods. This is a massive financial advantage.
Customs Duties Exemption: Goods imported into the zone for industrial, re-export, or commercial activities are exempt from customs duties.
No Personal Income Tax: Oman does not levy personal income tax on salaries and wages, which benefits employees in Duqm.
No Withholding Tax: Exemption from withholding tax on dividends, interest, and royalties (under specific conditions).
Full Repatriation of Capital and Profits: Investors enjoy complete freedom to repatriate their capital, profits, and dividends without any restrictions or currency controls.
Strategic Location & Market Access: Situated on Oman’s Al Wusta coastline, Duqm boasts a prime location outside the Strait of Hormuz, providing direct access to international shipping lanes and connecting to the lucrative markets of the Middle East, Africa, and Asia.
World-Class Infrastructure: SEZAD offers state-of-the-art facilities, including:
Port of Duqm: A deep-sea multi-purpose port.
Dry Dock: One of the largest ship repair yards in the Middle East.
Duqm Airport: Facilitating air cargo and passenger movement.
Extensive Industrial Lands: Fully serviced plots for various industries.
Dedicated Utilities: Reliable and efficient supply of power, water, and gas.
Simplified & Streamlined Procedures: SEZAD’s “one-stop-shop” approach consolidates all government services required for investors, making company registration, licensing, and obtaining permits remarkably efficient.
Long-Term Land Lease Agreements: Businesses can secure long-term land lease agreements for up to 50 years, renewable for similar periods, providing stability and certainty for large-scale projects.
Flexible Employment Laws: SEZAD often offers more flexible labor regulations and streamlined visa processing for foreign workers, easing recruitment.
No Currency Restrictions: The Omani Rial is pegged to the US Dollar, providing exchange rate stability, and there are no restrictions on currency transactions.
Types of Legal Entities in Duqm Free Zone
SEZAD offers various legal structures to cater to different business requirements:
Free Zone Establishment (FZE): A single-shareholder company.
Free Zone Company (FZC): A company with two or more shareholders (can be individuals or corporate entities).
Branch of a Foreign Company: For existing foreign companies wishing to establish a direct presence in Duqm.
Branch of an Omani Company: For existing Omani companies wishing to operate from Duqm.
Representative Office: A non-commercial office primarily for promotion, marketing, or liaison activities.
Strategic Integration of Setup in Oman Services
Navigating the nuances of free zone regulations and international documentation can be complex. Setup in Oman offers specialized services to simplify your Duqm Free Zone company setup:
Company Formation (Duqm Specific): Our core expertise lies in streamlining your business establishment. For Duqm, we provide end-to-end Company Formation Services, guiding you through selecting the optimal legal entity (FZE, FZC, Branch), managing all documentation, liaising directly with SEZAD, and securing all necessary licenses and permits, ensuring a swift and compliant setup.
Investor Visa: As a foreign investor establishing your presence in Duqm, obtaining legal residency is paramount. Our Investor Visa services facilitate the visa application process, ensuring you and your key stakeholders can reside in Oman and actively manage your Duqm operations.
Corporate Bank Account: Post-registration, a local corporate bank account is essential for injecting capital and managing day-to-day operations in Duqm. We assist in opening your corporate bank account in Oman, facilitating smooth financial transactions within the zone.
Work Visa: For your team relocating to Duqm, securing proper work permits is vital for legal employment. Our Work Visa services handle the entire application process, ensuring your employees can legally contribute to your Duqm-based business.
PRO Services (Duqm Specific): Beyond initial setup, ongoing administrative compliance with SEZAD, license renewals, and managing specific free zone regulations require dedicated support. Our comprehensive PRO Services ensure your Duqm entity remains compliant with all local authorities, handling all necessary submissions and liaison on your behalf.
Challenges & Key Considerations
Activity Restrictions: While Duqm is broad, ensure your specific activities are permitted. Some activities might require additional approvals.
Documentation Rigor: The requirement for attested and apostilled documents can be time-consuming. Starting this process early is crucial.
Capital Demonstration: While not always a fixed high minimum, you must still demonstrate financial capability to undertake your proposed activities.
SEZAD Specific Regulations: Adhering strictly to SEZAD’s regulations, which may differ from mainland Oman laws in certain aspects (e.g., labor law, tax incentives).
Physical Presence: The need to secure physical office space or land within Duqm as part of the licensing requirement.
Have Any Question?
Our Track Record For Delivering Success.
0
+
Happy Customers
0
+
Project completed
0
+
Years Experience
Unlock Your Potential in Oman’s Future Hub – Duqm
Partner with Setup in Oman. We are your dedicated experts in Duqm Free Zone company formation, providing comprehensive support to turn your vision into a successful reality.
Case Study: Global Logistics Firm Expands into Duqm
A UAE-based logistics company set up its Oman operations in Duqm in 2024. By leveraging proximity to the Port of Duqm and Duqm Airport, the company reduced cross-GCC delivery times by 30% and operating costs by 18%. The company also benefited from a 10-year tax holiday and full customs exemptions, enabling expansion into African markets via Oman.
Frequently Asked Questions (FAQs)
Can I own 100% of my business in Duqm Free Zone?
Yes, Duqm allows 100% foreign ownership for most business activities.
Do I need a local sponsor or partner?
No local sponsor is required in the free zone.
Is Duqm suitable for startups?
Yes. SEZAD encourages both large-scale industrial projects and scalable startups, especially in technology and logistics.
How long does the setup process take?
The average setup time ranges from 2 to 6 weeks, depending on activity and documentation.
Do I need to register with the Ministry of Commerce?
No. Duqm companies are registered through SEZAD’s One-Stop-Shop, which acts as the regulatory body.
Is VAT applicable to Duqm companies?
Only if selling goods or services outside the free zone or to the mainland.
Have Any Question?
Ready to Get Stared?
Fill out our quick and easy contact form below. Briefly tell us about your vision and goals, and we’ll be in touch shortly to discuss a personalized plan for your success.