A common strategy for foreign companies to achieve complete foreign ownership is by creating a Branch Office of their parent company. Legally considered a direct extension of the parent company, a Branch Office lacks a separate legal identity. Consequently, the Branch Office carries the same name as its parent company.

Setting Up and Structuring a Foreign Branch in Oman:

To establish a branch of a foreign company, it is crucial that the foreign company holds a contract with a government entity or a government wholly-owned company. Alongside the registration documents, the foreign company must submit an undertaking, declaring its commitment to bear the liabilities of the branch and the actions of the branch manager. The duration of the Branch Office is limited to the necessary project execution period in Oman. It is prohibited from undertaking any work for third parties unrelated to the project. The branch's activities must align with those of its parent company, and engaging in other activities requires prior approval from the parent company and registration with the Ministry of Commerce and Industry.

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