The business law
TASK 1
- INTRODUCTION
Business law, which is also referred to as commercial law, is a bunch of laws and rules that regulate the dealings concerning economic issues majorly business organizations. It covers all requirements that show how a business can be set up and run. The Sultanate of Oman has set business laws that govern the operation of business activities in the country. Basing on the case set up for analysis, the rules covered in the case are: Registering and formation of a Limited Liability Company by locals of Oman; Minimum share capital required to start an LLC; Employment laws for both locals and foreigners; Public sector procurement laws; Bankruptcy filing rules; Ending of an LLC. This paper discusses the laws related to the above activities of the partners.
OBJECTIVES
- To analyze the specific business laws that outline the specific actions of the partners in the case study.
- To outline the specific points that have been discussed in the essay paper.
- To give a list of references baring proper in-text citation of the literature.
- To critically evaluate the health and safety laws in Oman.
- To analyze the laws regarding legal considerations for promotional offers in Oman.
- To evaluate the laws related to the trademark in Oman.
- DISCUSSION
A limited liability company is a company where one’s shareholder liability is circumscribed to each capital share. The Sultanate of Oman requires that for the formation of a limited liability company, there should be no less than two partners and a maximum of forty shareholders. One of the partners is required by law to be a citizen of the Sultanate of Oman, a constituent of the USA, or a member of the GCC. The individual should own more than 30% shares of the company. The Local Transportation Company LLC (LTC) was established by four citizens of Oman, namely Ahmad, Sadiq, Yahya, and Maeen, as required by the law. The least amount of capital that is needed for the business law to start a company in Oman is set at OR 150,000. This law influenced the formation of Local Transportation Company as the four investors invested a total of OR180000 by each contributing; Ahmad OR 85000, Sadiq OR 55000, Yahya OR 22000, and Maeen 18000. Employers in Oman are required to consider the labor laws set in employment during the employment of workers. The rules are strict on employing foreign workers in a field of work that can be quickly done by local workers. The state imposed a policy known as “Omanisation” a rule that clearly states the percentage of domestic workers that are to be employed by specific industries in operating in Oman. The rate of Oman workers to be used are regularly updated following the directives offered by the Ministry of Manpower in Oman. Some of the available jobs in various sectors are correctly set aside for only Omani nationals. Local Transportation Company has been able to follow the set law as the company has employed a total of fifty drivers who are all nationals of Oman. The company has further used twenty mechanics, of which two are Omani nationals, and eighteen are foreign employees. The employment of both international and local nationals has been influenced by the laws set by the Ministry of Manpower in Oman.
The business law in regards to tender procurement requires that local distributors of products register with most of the vendors to take part in tenders and receive documents regarding the bids needed. Companies are required to apply for tenders to be picked for the tender supply. The company that gets a solicitation is mandated to sign a supply contract with the vendor, which states the agreement between the two parties. The document should include the goods being supplied, the amount of payment is issued, and the period within which the tender is to run. Local Transportation Company, through the given business laws, was able to apply and win a bid from Muscat Municipality. The proposal won was that of supplying the municipality with transport services for its workers. The company signed the contract to offer the transport services for two years. The commercial company law in Oman states the steps under which a company is to file for bankruptcy. The law states that a court must declare bankruptcy as the proclamation of insolvency of a business is one that is set on the grounds of the end of the company due to financial trouble. After being declared bankrupt, a company must be removed from the Commercial Register and face liquidation. A liquidator is appointed by the court to transfer the company’s remaining assets, the law in Oman. Bankruptcy can only be written off by the court if the company can pay all the debts in the list of debtors prepared by the court. Local Transportation Company faced financial trouble in 2019 and filed for bankruptcy and end of the company in 2020. The company list of debt as per the law is; Bank debt of OMR 210000; unpaid invoice of OMR 35000; due rent of 7000 and outstanding salaries of OMR 68250. According to business law, bankruptcy can only be lifted by the court if the company cancan fully pays for the debts.
- CONCLUSION
Business law is a bunch of laws and rules that regulate the dealings and activities of a business or organization in a specific country. The primary purpose of the regulations is to make sure that companies observe law and order, can solve disputes quickly, follow the set standards for operation, and see the set rules when relating to other businesses, customers, and the government. The Oman government has set up business laws that help the country in regulating business activities. The requirements help in guiding an individual on how to start a company in Oman. The conditions require a minimum of two partners and a maximum of forty shareholders. The laws state the employment laws that are needed to be followed by the companies situated in Oman. The laws protect residents’ employment, stating the conditions under which a company is to employ its workers. If a company faces financial trouble, the business law states the steps to be followed when applying for bankruptcy and the owners’ intent to end the operations of a company. As stated above, it is evident that countries require business law to monitor the activities of companies operating under their jurisdiction and protect their citizens from foreign competition in the employment market.
TASK 2.
- WRITE AN ESSAY THAT REFLECTS YOUR ANALYSIS AND CRITICAL EVALUATION ABOUT OMAN LAWS THAT ARE RELATED TO HEALTH AND SAFETY, LEGAL CONSIDERATIONS FOR PROMOTIONAL OFFERS, AND LAWS RELATED TO TRADEMARKS.