Business Incubators
Regulations for creating business incubators (No.45/2022) were released by the public authority for small & medium enterprises development in February 2022. Minister of Trade, Industry, and Investment Promotion Qais bin Muhammad bin Musa Al-Yousef
To begin, applicants must be either an institution or a firm. A suitable location for a business incubator must be found. Except for virtual business incubators and accelerators, the business incubator should be congruent with its aims and suited for the purpose and activities for which it was founded. The application for a license must be filed on the supplied form to the Authority’s responsible department. The data and documentation indicated in the above-mentioned form must be sent with the application. The following facts and documents, in particular: A copy of the current commercial registration as well as an action plan are required.
Moreover, the license period is one year, it can be renewable for a similar period. The types of business incubators that have been licensed by the Authority are specified as the follow:
- Business incubators and accelerators
- Co-working space incubators
- Virtual business incubators and accelerators.
Business incubators main missions are
- Provide the appropriate environment for the beneficiary while carrying out their work
- Providing technical support for the start-up phase of small and medium enterprises
- Supporting innovation and development for the beneficiary
- Encouraging and supporting investment in the business incubator sector and small, medium-sized enterprises
- Providing appropriate technical support to transform investment, commercial and economic ideas, in the form of successful small and medium enterprises.
- Providing administrative, advisory, legal, accounting and marketing services. Periodic follow-up and assistance in preparing feasibility studies, work plans and services
On the other hand, Business incubators must adhere to the following licensing provisions: Not to use the business incubator headquarters or any part of it for purposes other than those designated for it. Submit an annual report to the Authority on its performance, achievements, and activities it has practiced. Based on the prior written consent of the authority, provided that this data is updated In the Authority’s database (30) thirty days from the date of the legal disposal. A change in its legal form, or any other legal action, only thereafter.
The authority, based on the provisions of this system, may take the following administrative penalties: Warning the business incubator to remove the causes of the violation. An administrative fine of (250) two hundred and fifty Omani riyals. Suspension of the license for a period not exceeding (30) thirty days, which can be extended for a similar period.
The license is canceled in the following cases: Failure to engage in business incubator activity for a period of (6) months from the date of obtaining the license without providing an excuse acceptable to the Authority. Repeating the same violation of the provisions of this system within a year. Evidence of obtaining a license for deception, fraud, forgery, or submission.
written by :
Maram Al Farsi
Wijdan