Detailed insight on Oman Sultani Decree No. 55/1990, Oman Law No. 4/1974, Promulgated by Oman Sultani Decree No. 18/2019.

Oman Sultani Decree No. 55/1990: Commercial Law

• Framework: Establishes a broad legal structure for business and trade in Oman, covering commercial activities, merchants, obligations, contracts, banking operations, and commercial agency.

  • Title 3, Book 3: Commercial Contracts: Governs the essentials of commercial contracts, including offer and acceptance, ensuring enforceability and setting the stage for dispute resolution.

  • Chapter 1, Title 5: Commercial Agency: Defines the relationship between principals and agents, protecting the rights and responsibilities of each party involved in commercial representation.

  • Book 6: Banking Operations: Regulates financial transactions, including deposits, transfers, and letters of credit, which are vital for the stability and efficiency of the banking sector.

  • Book 5: Maritime Commerce: Includes regulations regarding maritime companies, ships, and related activities, reflecting Oman's historical and strategic focus on maritime trade.

• Implications for the Market:

  • Banking Sector: Governs banking operations, including deposits, transfers, and letters of credit.

  • Trade and Agency: Regulates commercial agencies, commission agencies, and brokerage, impacting how international businesses operate within Oman.

  • Real Estate: Addresses the purchase, sale, and rental of real estate for commercial purposes.

• Specific Industries:

  • Finance: Establishes the legal basis for banking practices and financial transactions.

  • Import/Export: Defines the rules for commercial agencies, affecting international trade relationships.

  • Real Estate Development: Shapes the legal landscape for property investments and commercial leasing.

Oman Law No. 4/1974, Promulgated by Oman Sultani Decree No. 18/2019: Commercial Companies Law

• Framework: Governs the establishment, registration, management, and dissolution of various types of commercial companies in Oman.

  • Part 2: Company Formation: Streamlines the process of establishing different types of companies, including documentation and registration, facilitating business setup.

  • Title 13: Corporate Governance: Outlines the responsibilities of directors and shareholders, promoting transparency and accountability in company management and operations.

  • Title 13, Chapter 9: Dissolution Processes: Defines the legal framework for the winding up and liquidation of companies, ensuring a structured and regulated closure.

  • Part 2: Types of Companies: Covers regulations for various company structures, including joint liability companies, limited partnerships, joint venture companies, joint stock companies, limited liability companies, and one-person companies, providing options for different business needs.

• Implications for the Market:

  • Company Formation: Dictates the procedures for setting up different types of companies (e.g., LLCs, joint stock companies).

  • Corporate Governance: Defines the rules for company management, shareholder rights, and dissolution processes.

• Specific Industries:

  • All sectors: Its effects cut across all industries because it establishes the legal framework for practically all businesses operating in Oman, from small enterprises to huge organizations.

Conclusion

These laws collectively establish a structured and regulated environment for commercial activities in Oman. The Commercial Law (Oman Sultani Decree No. 55/1990) sets the broad parameters for trade and finance, while the Commercial Companies Law (Oman Law No. 4/1974) provides the specific regulations for company formation and governance. Businesses operating in Oman must adhere to these laws to ensure compliance and facilitate smooth operations.