Task 1: Evaluation of the process of converting Partnership to Limited Liability

Company (LLC)
It's normal for Omani entrepreneurs to originally begin their business experiencing out
sole proprietorship or maybe partnership as the structure of theirs but later on they are
going to convert to a restricted responsibility business (LLC).

Based on Article thirteen Bis one on the Sultani Decree four of 1974 Commercial
Companies Law CCL, it's allowable to transform a business through a single condition
to the next by a choice given around accordance with the guidelines created for
amending the memorandum of incorporation of a current provider or maybe the articles
of its of connection in deep conformity with all the methods as well as problems of
companies of what transformation requires place. (Coviello and Jones, 2014)

When it comes to Article thirteen Bis two, transformation of companies shan't lead to the
construction associated with a brand new juristic individual and also the organization
following conversion process shall hold on to almost all the previous rights of its as well
as debts which preceded some conversion process. The conversion process won't give
off users coming from the joint liability of theirs with regard on the business preceding
the transformation unless of course the creditors will concur to discharge. Based on
CCL, it's allowable for partnership to transform to minimal responsibility business
offered the candidates comply together with the provision on the CCL.
The methods for transforming partnership right into a small responsibility business are
as follow:
1) The candidate is necessary to liaise together with the MOCI and also publish an
agreement of selling of percent. The agreement with the selling of portion is a share
transfer method in which the existing proprietor offers a percentage of the stake of his to
the next Omani or maybe a different partner. The agreement with the selling of
proportion is going to be performed as well as signed with the MOCI. All people, the
seller as well as customer have to be existing with the MOCI. If every among the people
aren't offered to sign in the MOCI, the lacking bash will have to issue strength of lawyer
authoring the effectiveness of lawyer holder to sign of his behalf. (Sajwani, 2011)
2) After the sale of portion is performed, the candidate is needed to post the required
files on the MOCI. The title reservation. The first task is the fact that the candidate is
necessary to reserve a title of business and also the suggested title of companies must
mirror the term LLC. The files to become published will be the following:
a) Constitutive agreement of the LLC will establish away the business's pursuits, level of
capital, quantity of shares, members' nationalities, voting rights, respective
shareholdings, partners' conference among others. This particular booklet is necessary
to be ready with Arabic as well as signed by all of the partners;
b) Certificate of great standing up. When the new partner is a person, the brand new
inbound companions will in addition need to develop a certification of great upright with
the country of theirs of origin; (Ruppert, 2014)
c) Constitutional resolution and documents of partner, inside the function which the
partner is a company entity, it is going to need to offer the constitutional documents of
its as certification of incorporation, articles and memorandum of incorporation, as well
as the resolution approving the participation of its within the LLC;
d) Original duplicates of business registration certification, laptop printout as well as
Oman Chamber of Commerce certificate/card of current partnership; as well as five)
Copies of the ID cards just for the regional Omani partner as well as passport text just
for the overseas partner.
In the event that all of the above papers are posted towards the MOCI for
transformation of partnership to an LLC, the MOCI will evaluate the application program
sales letter and then submitted files as well as for endorsement. As soon as the
endorsement, they are going to issue the brand new industrial registration booklet within
the title of LLC. The MOCI will even issue a sales letter verifying conversion process
based upon that the LLC will probably be allowed to amend the name of its during the
correct ministries, other government bodies and banks. The above mentioned
transformation procedure is going to be simpler in the event that all of the written
documents are prepared and additionally each are posted to MOCI for approval and
review. (Rowe, 2012)
Conclusion
Business owners in Oman may choose to convert to other forms of business structure.
If they want their business to be larger in size after its growth. Or the businessman want
to show the investors that they are growing bigger in the industry, they are converting a
partnership into LLC. Other reasons for converting is when businessmen looks for more
flexible business operations or changing to structure where it will provide them more
protection for their personal assets. Converting a partnership into LLC is quite simple
depending on the business you are currently operating. All the necessary documents
and other requirements should be submitted to MOCI for review and approval.

Task 2: Critical Comparisonof the business organizationculture in terms oflegal

personality, formationand administrative requirements
SoleProprietorship
Soleproprietorship is a business structure where an individual serves a sole owner. The
sole proprietor starts his business on is own and obtain his business license under his
own name. The owner or the sole proprietor bears the full extent of his assets and
liabilities and the business does not possess a different legal entity from its owner. The
process involved in the formation of a single proprietorship is simple and few compared
to other business structures. The formation process includes:
1) The business entity of a single proprietor has to be registered with a minimum
capital of OMR 3000.
2) The documents required such as public key infrastructure enabled ID card, public
key infrastructure enabled resident card, authorized signature forms and
individual identity card have to be presented at the MOCI to initiate the process
of registration and
3) It becomes necessary that the individual ensures registration of the business
entity with the ROP and obtains a good standing certificate.
After the process in done, the Ministry of Commerce and Industry will issue a trade
license and the business now under sole proprietorship can start. (Jones & Coviello,
2014)
Partnership (General as well as Limited)
An overall partnership is a connection with a minimum of 2 individuals as well as whose
participants are severally and jointly likely towards the responsibilities on the connection
on the complete scope of the personal wealth of theirs. There's simply no optimum
restrict to involvement. Most basic JVS have to be authorized inside the Commercial
Registrar. The understanding which sets away the connection among the companions,
in addition to virtually any consequent agreements have to be submitted together with
the Commercial Registrar. The specific partnership should include the title of just one or
even much more of the associates combined with a sign which the partnership is
available. Managing devolves upon every companions, except if normally is suggested
to the partnership understanding.

A partnership has 2 kinds of members: common associates that are engaged within the
managing of limited partners and the partnership that just add capital on the
partnership. The basic associates are likely towards the responsibilities on the
partnership on the complete scope of the personal wealth of theirs. The responsibility of
restricted associates on the responsibilities on the partnership is restricted towards the
quantity of capital contributed by the restricted companions, offered the limited
associates don't do managing of the partnership or even usually action within the
partnership's brand. (Eickleman, 2011)
.
A partnership needs to have no less than 2 individuals, plus there's absolutely no
optimum restrict to involvement. Most restricted JVS have to be authorized inside the
Commercial Registrar. The partnership understanding as well as some consequent
agreements have to be submitted with the Commercial Registration. Much like common
jvs, the title associated with a small partnership should add the name of just one or even
much more of the associates combined with a sign which the partnership is available.
Managerial constructions resemble the ones that are present overall jvs don't waste for
the limitations required on the restricted companions to participate within control. Thus,
managing is restricted to as well as worked out through the basic associates. The
dissolution of restricted responsibility JVS is dependent on identical concepts governing
 the dissolution of common jvs, though it should be stressed that the demise, insanity,
withdrawal or bankruptcy associated with a small partner doesn't justify dissolution
.
Limited LiabilityCompany (LLC)
LLCin Oman should have no less than 2 as well as max of forty shareholders and also
the least capital is OMR 150000. It is able to additionally undertake tasks established
out there within the items found in the LLC'sconstitutive agreement much like
Memorandum ofAssociation (MOA)/Articles of Association (AOA). (Rowe, 2012)
The following process to register LLC in Oman:
1) Name Reservation. Candidate calls for distributing application program to Ministry of
Industry and Commerce (MCI) exposed to appropriate law to reserve the title of
organization topic to restriction of applications of specific brand as provided in Omani
Law;
2) MCI Application (Incorporation scanned documents submission). Following reservation
and approval of Name, right now the next thing is preparing as well as get files such as
international shareholder papers or maybe Omani shareholder scanned documents,
Constitutive shrink plus authorized signatory type, bank account certification for proof of
conformity with LLC's capital requirements;
3) Oman Chamber of Industry and Commerce (OMCI) registration. This is the last stage of
registration progression and it is gotten directly about the MCI finishing its registration
procedure to follow another recommended industrial regulations as well as regulation
for business within Oman;
4) Approvals. With respect to the dimensions, composition and nature of company,
additional federal approvals might require;
5) Company Seal. The instructions to help make the organization seal or maybe stamp is
given through the signed up authorized signatory on the LLC. When given towards the
provider on the stamp or maybe seal, this kind of instructions must be drive with an
attested signature sample verifying the asking for persons' power to get the stamp or
maybe seal; (Ruppert, 2014)
6) Post registration. When the LLC is authorized the organization is going to need to
arrange as well as get using approval or registration, because the situation could be to
 jog business/trade found Oman. This contains the subsequent process: Municipality
license Tax registration with RoyalOman Police,Registration with Ministry of Manpower,
to put on for labor clearances as well as visa, Import Export License, with respect to the
dynamics of company as well as Industrial, other and environmental licenses and
permits, based about the nature of company. (Sajwani, 2011)

Joint Stock (SAOG and SAOC)

Joint Stock Company is among the biggest types of the entity found Oman. You will find
2 primary kinds of Joint Stock Companies. They are:
Public Joint Stock Company: It's likewise known as SAOG plus it provides the shares of
its with the general public and also shows up on the Muscat Securities Market.
Closed Joint Stock Company: It's additionally known as SAOC and that doesn't provide
the shares of it’s into the general public, and it is necessary to use no less than 3
shareholders. (Coviello and Jones, 2014)
The procedure for creating a SAOG or SAOC is akin to that particular of an LLC, but is
a lot longer and much more document intensive, particularly for just a SAOG. The
overseas business has to initially implement for title reservation on the Commercial
Registrar on the MCI. Other measures are as follows:
1) An application program has to be posted towards the Director General of Commerce in
the MOCI for issuance of a management Decision with a pair of documents;
2) After distributing the entire package deal together with the essential costs, the Director
General of Commerce at the MOCI has thirty days or weeks to find out whether or not to
approve the business's development. In case authorized, a management Decision for
registration on the business is given;
3) The Director, throughout the program of your time, might talk to you in order to amend
the suggested AOA or MOA and also could ask for extra duplicates of just about all
published documents;
4) Once an Administrative Decision approving the development on the company is given,
the business's founding participants have thirty days or weeks to convene a Constitutive
General Meeting (CGM);
5) In the conference, the part should confirm all of the activities used by the founder before
the registration particular date on the organization as ratification of virtually any
agreements moved into interested in on behalf of the manufacturer and also
endorsement of all of pre formation costs incurred for the registration and also
development of companies. (Gabrielsson, 2014)

Company should concurrently load up the application program type for business
registration of Arabic and also sign identical through the authorized signatories For
aSAOG, another intricacy may be the necessity of carrying out a preliminary public
providing. Written documents necessary to develop a joint inventory organization of
Oman are as follow:
1) Covering sales letter in Arabic;
2) Final constitutive shrink as well as Articles of Association,
3) Foreign shareholder files (similar to all those written documents necessary for an LLC),
4) Omani shareholder documents (similar to those documents needed for an LLC),
5) A bank account certification given by a bank account inside Oman verifying that every
one of the founder shareholders has deposited the capital contributions of theirs with all
the bank account inside the title of to-be-formed business;
6) Copies of identification electronic documents of the founder shareholders, if all-natural
individuals. (Chetty and Campbell-Hunt 2014)

The shares within an LLC aren't valuable and also the shares has to be completely
compensated in place at beginning of the business, however in an SAOC the shares
could be presented on the market also it's allowable paying several of the capital at first
and issue extra capital in the future. Additionally, conference formalities will vary for
every framework. LLCs could have casual conferences as well as absolutely no rii
conference is needed. SAOCs, however, should have statutory conferences from
establish times in accordance with Omani law. In the end, the project type or maybe
small business required and also the single requirements of the people required will
decide whether a SAOC or LLC may be the greatest choice for a specific scenario.
Joint Venture
A joint endeavor needs to have no less than 2 individuals, plus there's absolutely no
optimum restrict to involvement. Jvs aren't susceptible to registration demands. The
understanding which sets upwards the joint endeavor should determine the goals of
joint online business, the rights as well as responsibilities of the members of its and also
the division of losses and profits. Dissolution of JVS might occur in which the phrase on
the endeavor expires, the endeavor achieves the objects of its, most passions are
transferred to just one individual, bankruptcy, loss in everyone or even most of the
creation and the capital of a participants shrink to break down the endeavor. (Vahlne
and Johansson, 2014)

Holding Company
Underneath the CommercialCompanies Law of Oman (CCL), a keeping business might
be created possibly being a joint inventory business or maybe a restricted responsibility
business. The least capital necessity of a holding provider is RO 2000000. This kind of
capital might be either compensated in place upon incorporation on the keeping
organization within total or even in portion on the degree of fifty % within the situation
associated with a joint inventory business. If of issued share capital becoming partially
settled upwards subsequently the rest of the sense of balance is going to need to
become compensated in place in 3 yrs through the particular date of incorporation of
keeping organization.

A keeping organization can't personal passions belonging in a limited or general

partnership also it's prohibited through having shares belonging in another keeping
organization. The least capital necessity of a keeping business is going to be RO
2000000. As established away earlier mentioned, fifty % of issued share capital might
be compensated with the moment of incorporation on the keeping organization with all
the leftover sense of balance is going to need to become compensated in place in 3 yrs
through the particular date of incorporation of the holding organization. (Cavusgil, 2010)
Setting up a presence inside Oman
The Sultanate's political balance as well as contemporary trading process, helps make
Oman probably the most appealing hubs within the Middle East for overseas
companies. Installing a small business inside Oman is usually a troublesome process
also it's recommended to entail a from the local farmer's market training lawyer within
the establishment procedure, because the vast majority of the written documents
requested by the Omani governmental authorities have to be drafted with Arabic. This
poses challenging for company proprietors who may have don't talk Arabic fluently. In
general, the procedure of establishing a small business isn't an especially long body, in
the event the area laws are adhered to and also the customer submits papers or even
legalized duplicates of essential electronic documents with the country of its of
origin/registration.

Picking out the right authorized framework with the company pastime you want to
perform within the Sultanate. As it's necessary for every business conducting business
within the Sultanate to enjoy an authorized existence of Oman, the initial stage for just
about any possible business person must be to thoroughly examine all the accessible
authorized buildings for international investments in Oman to figure out the best
excellent authorized type of the Oman dependent subsidiary of all of the prospect. We
are going to focus over the most widely used internet business versions for joint
overseas as well as Oman investments within the Sultanate which includes getting a
nearby representative, setting up a department business office, as well as establishing
Limited Liability Company. (Bloodgood, 2012)

Findings and Conclusion

Sultanate of Oman is one of the countries in Arab which is stable, developed and has
political stability. The political and social situation are very strong and the focus in on
developing the country’s economy. With this scenario, Oman is very attractive for local
investors and for foreign investors. But generally, all the investors before they start a
venture in Oman should think of the best business structure to start with. All the
business structures are available to choose from like SoleProprietorship,
Partnership,Limited LiabilityCompany, JointStock Corporation, JointVenture and
HoldingCompanies. All these legal entities in Oman have its characteristics and legal
personality. The administrative requirements of the business structures were discussed
and analysed.

Any businessman or investor planning to set up a business in Oman should choose an

entity which he believes would be appropriate for his type of business. Oman
requirements in entering into business are doable so the businessmen will be motivated
to enter the business in Oman. There is flexibility to operate different entities in Oman
to attract more inventors. Before choosing a business structure, an investor should
know certain points regarding the type of business and the benefits of the chosen
business structure.

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