finance & economy

Incentives to curb multiple commercial registers

May 20, 2021

MUSCAT: Within the framework of efforts aimed to stem the phenomenon of the multiplicity of commercial registers, the Ministry of Commerce, Industry and Investment Promotion on Wednesday announced a package of facilities for commercial companies willing to liquidate or merge with other companies with effect from Tuesday June 15, 2021, for a whole year. The move is aimed at helping commercial companies to adjust their status and encouraging the owners of multiple commercial registers to liquidate or merge with other entities.

Dr Saleh bin Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, said that the increase in commercial registers is generally considered a sign of a good economy indicating economic openness and an improvement in the business environment, however the gradual increasing in the number of new and inactive commercial registers indicate some sort of defect.

There are several reasons for the presence of inactive commercial registers, but it is mainly linked to hidden trade, a phenomenon that causes negative socio-economic results including inefficiency in proposing macroeconomic policies as well as affecting the labour market and Omanisation and employment policies in addition to the emergence of unfair competition that affects the small and medium enterprises.

Mubarak bin Mohammed al Dawhani, Director-General of Commerce explained that the facilities offered to companies planning for liquidation include that one of the partners acts as liquidator instead of the accountancy and audit offices. He added the company has to pay RO 50 which includes all the liquidation procedures and exemption from government fines.

In the case of merger, commercial companies will be exempted from fines and fees on commercial registers provided that the owners of individual establishments and commercial companies bear any financial claims made by a third party, the official said.

omanobserver

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