Terms to convert limited liability companies into closed joint stock firms to be unveiled shortly
The Sultanate of Oman is poised to introduce new regulations and procedures that will enable Limited Liability Companies (LLCs) to transition into Closed Joint Stock Companies (CJSC). This initiative, which falls under the auspices of the Ministry of Commerce, Industry and Investment Promotion, aims to foster a more robust, transparent, and sustainable economic landscape in line with Royal directives and landmark economic reforms.
Qais bin Mohammed Al Yousef, the esteemed Minister of Commerce, Industry and Investment Promotion, highlighted the government’s commitment to enhancing the integrity and viability of businesses within the nation. By facilitating the transformation of LLCs into CJSCs, the Ministry targets the core of Oman’s business structure, providing pillars such as improved audit systems, governance, and transparency in financial dealings.
In an effort to streamline this significant transition, the Ministry promises a simplified procedural framework. This strategic move is not just about restructuring but also instilling confidence among investors, creditors, and clients. A Closed Joint Stock Company structure offers increased flexibility in management, expedited operational capabilities, and seamless share trading processes, thereby nurturing an environment conducive to business expansion and longevity.
Dr. Saleh Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, echoed the Minister’s sentiments. He underscored the Royal endorsement of this initiative as a cornerstone for capital market development and a step forward in revitalizing the commerce and industry segment of the Omani economy. The overarching goal is to stimulate company growth, enhance decision-making agility, and fortify stakeholder confidence across the board, setting a precedent for enduring corporate success.
This forward-looking initiative stands as a testament to Oman’s dedication to evolving its commercial and industrial sectors. By paving the way for LLCs to become CJSCs, the Sultanate is not only promoting a more dynamic market but also laying down the foundations for future generations to inherit a stable and thriving economic framework.
