SOHAR compliance is not one annual renewal. A working company needs to keep its SOHAR licence, premises, tax, VAT, customs, workforce and technical approvals aligned throughout the year.
For the wider SOHAR location and project context, use the SOHAR Freezone Investor Guide.
This article focuses on SOHAR. For the general framework, use Annual Compliance, Audit and Licence Renewal for Oman Free Zone Companies.
1. SOHAR licence renewal
SOHAR’s published Rules and Regulations state that the licence is valid for one calendar year and is renewed annually when the required conditions are met.
- valid licence status;
- valid lease agreement;
- payment of financial obligations due to the Operating Authority;
- payment of renewal fees.
The live One-Stop Shop should be checked before each renewal because forms, fees and digital procedures can change.
2. Premises are part of compliance
A licence renewal does not replace the lease/property agreement. Keep the premises valid and use it only for the approved activities. Sharing/sublease and changes to premises should follow SOHAR approval rules.
3. Tax and exemption file
Under Royal Decree 38/2025, an exempt enterprise still submits tax returns. If the company relies on a legacy SOHAR exemption, keep the actual exemption certificate/decision, expiry date and any continuing conditions in the file.
4. VAT
VAT-registered companies should file VAT returns under the Tax Authority schedule and maintain evidence for Special Zone zero-rating where used.
5. Customs and inventory
| Check | Why |
|---|---|
| Bayan/customs registrations | Must remain usable for the company’s cargo operations. |
| Inventory reconciliation | Customs entry/exit should match warehouse stock. |
| Exemption-controlled items | Machinery/materials should remain used for approved purposes. |
| Mainland transfers | Keep free-zone-to-free-market declarations and tax records. |
| Origin claims | Retain production/origin evidence for preferential exports. |
6. Workforce
Track work permits, visas, professions, Omanisation and employee records. New roles or changed activities can alter the labour position.
7. Technical approvals
- environmental permit and monitoring;
- Plot Work Permit / construction approvals;
- Civil Defence;
- utilities;
- waste and wastewater requirements;
- sector/product approvals;
- insurance and HSSE requirements.
Do not assume the commercial licence renews all technical approvals.
8. Annual calendar
| Timing | SOHAR compliance review |
|---|---|
| Monthly / transaction-based | Customs and inventory, workforce changes, project milestones and HSSE. |
| Quarterly | VAT return if registered and internal customs reconciliation. |
| Before expiry | SOHAR licence, lease/property right, visas/work permits, insurance and technical permits. |
| After financial year | Accounts, tax return and audit where required by the applicable framework or contract. |
| Immediately after change | Shareholders/UBO, signatory, activity, address, facility or project amendment. |
9. Frequently asked questions
How long is a SOHAR Freezone licence valid?
SOHAR’s published rules state one calendar year, with annual renewal subject to the required conditions.
Does tax exemption remove annual tax filing?
No. The current zone law requires tax returns even for exempt enterprises.
Does licence renewal renew the lease?
No. The premises agreement has its own validity and obligations.
Does every SOHAR company need an audit?
Do not assume one universal rule. Check the entity, tax/exemption basis, zone terms, lender/shareholder requirements and applicable law.
Should customs records be kept after re-export?
Yes. Keep the declarations, inventory and commercial records needed to support the movement and any later verification.
10. Official sources
- SOHAR Freezone Rules and Regulations
- SOHAR One-Stop Shop
- Royal Decree 38/2025
- Oman Tax Authority: returns
Official public information reviewed on October 2, 2026. Build the company calendar from current SOHAR, Tax Authority, Customs, Ministry of Labour and sector requirements.
