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How to Start a Business in Al-Mazunah Free Zone ?

How to Start a Business in Al-Mazunah Free Zone ?

The Al‑Mazunah Free Zone (AMFZ) is a premier business hub in Oman—offering strategic location, 100% foreign ownership, zero tax, and simplified regulations. Whether you’re a trader, manufacturer, or logistics provider, starting a business in Al‑Mazunah Free Zone can unlock regional growth opportunities.

This guide explains all you need to know—from legal setup to operational requirements—so you can launch with confidence and compliance.

Why Choose Al‑Mazunah Free Zone?

Al‑Mazunah Free Zone offers 100% foreign ownership, full repatriation of profits, and zero customs duties on re-exports. Its strategic location near Yemen enables easy access to Gulf and African markets. With low setup costs, fast licensing, and simplified processes, it’s ideal for investors seeking growth and trade flexibility in Oman.

Strategic Border Location

Situated on the Oman–Yemen border, AMFZ offers easy access to GCC markets and neighboring countries—perfect for cross-border trade and logistics businesses.

100% Foreign Ownership

Unlike mainland Oman, AMFZ permits full foreign ownership, letting entrepreneurs run a business freely without a local partner.

Zero Tax & Customs Benefits

Businesses benefit from zero corporate tax, no customs duty on imports or re‑exports, and flexible repatriation of profits.

Simple Licensing Process

AMFZ offers streamlined licensing with clear fee structures, fast approvals, and minimal bureaucratic delays—ideal for startups and SMEs.

Business Activities Allowed in Al‑Mazunah Free Zone

Understanding permitted activities is key. Typical sectors include:

Trading & Distribution

Import/export of goods, wholesale and retail operations—ideal for trading companies.

Logistics & Warehousing

Opportunities in transport, storage, and multimodal logistics—leveraging AMFZ’s customs advantage.

Light Industrial Manufacturing

Allowed activities include assembly and packaging for export-oriented industries.

Services & Support Facilities

Business support services such as consultancy, IT, and e‑commerce are permitted under specific licensing terms.

Legal Structure and Company Types

AMFZ supports flexible company forms:

Free Zone Company (FZC)

A standalone vehicle with 100% ownership that can rent warehousing or office space within AMFZ.

Branch of Foreign Companies

Existing overseas firms can set up branches without needing new ownership entities.

Leasing a Storage or Office Unit

Particularly useful for service providers or traders looking for a physical address without complex structures.

Step-by-Step Company Formation Process

Starting a company in Al‑Mazunah Free Zone is quick and efficient. From choosing your business activity to obtaining your license, each step is clearly defined and supported by zone authorities. With minimal paperwork and fast approvals, entrepreneurs can launch operations confidently and begin trading in just days.

Step 1 – Choose Your Business Activity

Identify the primary trade, logistics, or light industrial activity you’ll carry out. This affects licensing category.

Step 2 – Submit Application & Documents

Prepare:

  • Application form (available from AMFZ)
  • Passport copies
  • Bank reference letters
  • Local agent letter (if needed)

Step 3 – Pay Registration & License Fees

Fees depend on business activity and space type. AMFZ offers transparent fee schedules for trading, storage, or services.

Step 4 – Sign Lease / Allocation Agreement

Secure your required premises—office, warehouse, or land plot.

Step 5 – Get Your Free Zone License

With documentation and payment in order, approval is granted quickly. You receive your commercial license and CR.

Capital & Deposit Requirements

Al‑Mazunah Free Zone requires a minimum capital investment, typically ranging from OMR 5,000 to OMR 10,000, depending on the business activity. This capital must be deposited in a local bank as proof of commitment. The financial requirement is designed to support business stability and growth within the free zone.

Minimum Capital

AMFZ requires a minimum paid-up capital, typically between OMR 5,000 to OMR 10,000 depending on activity. Capital proof must be shown during licensing.

Bank Account Opening

Open a corporate account with an Omani bank. You’ll need:

  • Trade license
  • Lease agreement
  • Passport copies
  • Bank deposit confirmation

Office, Warehouse & Utilities Setup

Businesses can lease ready-to-use office spaces, storage units, or large industrial plots based on their needs. Al‑Mazunah offers modern infrastructure with cost-effective power, water, and telecom services. The streamlined setup ensures your workspace is operational quickly, so you can focus on scaling and servicing clients right away.

Premises Options

AMFZ offers tiered spaces:

  • Lightweight offices
  • Warehouse units (varied size)
  • Ready‑built plots for industrial factories

Choose according to your operational needs.

Utilities & Service Support

On‑site facilities include:

  • Power and low‑tariff electricity
  • Water and telecom services
  • Customs office inside the zone

Visa & Employment Permits

After licensing, investors can apply for a Golden Investor Visa and request employment permits for their staff. The zone’s PRO services assist with labor quotas, visa stamping, and medical clearances. Employers must meet Omani labor laws when hiring, ensuring a legally compliant workforce setup from the start.

Investor Visa

You can obtain a Gold Investor Visa through AMFZ, valid for two years and renewable, covering your ownership.

Employee Visas

You must apply for labor quota approvals from Oman’s Ministry of Labor. The process involves:

  • Passport copies
  • Medical tests
  • Employment contracts

AMFZ can assist via its PRO office.

Customs & Trade Advantages

Businesses in Al‑Mazunah Free Zone enjoy bonded warehousing, simplified customs procedures, and zero-duty benefits on re-exports. Located near the Yemen border, the zone is ideal for companies focused on cross-border trade. Goods stored in the zone aren’t taxed unless moved to the Omani mainland, offering strategic tax planning benefits.

Bonded Facility Benefits

Goods entering AMFZ are duty‑free until re‑exported or released into Oman mainland—ideal for export or trade setups.

Simplified Customs Procedures

With customs on‑site, you get faster clearance, and access to e-tracking systems for imports/exports.

Post-Establishment Compliance

Companies must renew their license annually, update employee visas, and maintain financial records as required. Though compliance is minimal, businesses must still meet local regulations. The zone assists with PRO and administrative services to simplify your ongoing compliance obligations, so you can focus on growth and profitability.

Annual License Renewal

Your license must be renewed yearly. Fees cover renewed lease, admin charges, and any staff visa updates.

Financial & Audit Requirements

Annual submission of financials may be required by AMFZ. Audit obligations are typically light, unless enforced by bank or investor.

Employee Quota Updates

Any staff changes must be reported to the Ministry of Labor via AMFZ’s PRO desk.

Banking & Corporate Finance Considerations

Businesses can open corporate bank accounts in Oman with multi-currency support. Financial services such as letters of credit, working capital loans, and trade finance are available. Local banks offer flexibility and security, ensuring your financial operations remain smooth, transparent, and aligned with global trade requirements.

Multi-Currency Accounts

Omani banks offer multi-currency accounts, useful for trading with GCC, Europe, Asia.

Trade Finance & Letters of Credit

Banks support trade financing products such as L/Cs, working capital loans, and invoice discounting—helpful for growing businesses.

Strategic Advantages of Al‑Mazunah Free Zone

Al‑Mazunah’s border location, zero tax benefits, and customs-free trade make it an ideal hub for logistics, trading, and manufacturing. It’s perfect for companies targeting GCC and East African markets. The zone’s simplicity, scalability, and low operational costs offer long-term competitive advantages for regional and global entrepreneurs.

Access to GCC Road Networks

Border customs post speeds goods to Yemen and GCC via road—cost-effective for freight and distribution.

No Mainland Office Requirement

You’re not tied to Oman’s mainland rules—you can operate within AMFZ boundaries only, saving cost and compliance needs.

Scalability & Expansion Potential

Choose from larger warehouses or industrial plots if you plan to scale up production or storage capacity.

Exit Strategy & Liquidation

If you choose to exit your business, the process is straightforward. You must cancel all visas, settle outstanding dues, clear customs, and submit your closure request to the zone authority. With proper documentation and clearances, liquidation or license transfer is efficiently managed, preserving your legal and financial reputation.

Graceful Closure

If needed, the exit process is straightforward—cancel visas, clear customs, submit liquidation forms, and return leased asset.

Transfer of Ownership

Licenses and leases can be transferred to new investors, subject to AMFZ approval.

Conclusion

Choosing to start a business in Al‑Mazunah Free Zone provides access to zero tax, full foreign ownership, seamless customs, and flexible licensing—making it the ideal environment for expanding trade, logistics, or light manufacturing operations across GCC and neighboring markets.

To ensure smooth setup and ongoing compliance for your venture, rely on experienced Business Setup in Oman specialists who understand AMFZ’s rules and can guide you to success.

FAQs

Can I own 100% of my Al‑Mazunah company?

Yes. AMFZ allows 100% foreign ownership in most permitted business activities.

How long does registration take?

Typically 7–10 working days, provided documents and fees are complete.

Do I need a mainland office in Oman?

No. You operate entirely within the free zone unless you decide to trade in mainland Oman.

Are there taxes in Al-Mazunah Free Zone?

No. The zone offers zero corporate tax and no customs duties on eligible activities.

How many investor visas do I get?

You’ll get one golden investor visa, plus employee visas based on your labor quota.

Can I re-export goods from AMFZ?

Absolutely. Goods are bonded and duty-free, making re-export simple and cost-effective.

Can I lease multiple warehouses?

Yes. Scaling options are available—from storage units to large industrial plots.

What happens if I close the business?

Cancel visas, clear customs, liquidate assets, and deregister—AMFZ will guide you through.

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