Difference Between SAOC and SAOG

SAOC vs SAOG

“SAOC” and “SAOG” stand for many different things, but in this article we will be discussing SAOC and SAOG companies of Oman. In Oman, the listed companies have either “SAOG” or “SAOC” written with their names. SAOC and SAOG are both joint stock companies in Oman. Joint stock companies are two types, closed and open. The main difference between them is that in a closed joint stock company the transfer of shares has to be subjected to other shareholders’ preemptive rights. In an open joint stock company, the shares issued may be freely sold to third parties.

Other forms of business entities in Oman include holding companies, limited liability companies, and general partnerships. General partnerships are formed by two or more entities whereas a limited liability company is formed by one or more partners or sole proprietorships.
In Oman, a lot of joint stock companies are either partially or fully owned by the government of Oman.

SAOC
“SAOC” stands for “Societe Anonyme Omanaise Close.” These companies are closely held companies. They are also joint stock companies. A joint stock company is a company which falls between a corporation and a partnership. Three or more entities or individuals can form a joint stock company and issue stocks. The stocks are available for secondary market trading, but the liability of the company debts falls on stockholders. Joint stock companies have access to financial reserves and liquidity of stock markets as well as restrictions that come with a partnership. A company is considered SAOC in Oman if the minimum capital required is 500,000 (approx. U.S. $1.3 million). SAOCs are closed joint stock companies; thus, the transfer of shares has to be subjected to other shareholders’ preemptive rights.

SAOG
“SAOG” stands for “Societe Anonyme Omanaise Generale.” An SAOG is also a joint stock company, but the minimum capital required for this type of company is 2 million (approx. U.S. $5.2 million). Moreover, in an SAOG, a minimum 40 per cent of the companies’ stocks are issued for public subscription. It is also called a general joint stock company. SAOGs are open joint stock companies which means the stocks can be sold and traded to third parties.

Summary:

1.“SAOC” and “SAOG” are joint stock companies in Oman. An SAOC is a closed joint stock company which means a transfer of shares is subject to the preemptive rights of other shareholders; an SAOG is an open joint stock company which means the stocks are available for secondary market trading, but the liability of the company debts falls on the stockholders.
2.“SAOC” stands for “Societe Anonyme Omanaise Close”; “SAOG” stands for “Societe Anonyme Omanaise Generale.”
In Oman, for a company to be an SAOC, the minimum capital required is 500,000 (approx. U.S. $ 1.3 million); in Oman for a company to be an SAOG, the minimum capital required is 2 million (approx. U.S. $5.2 million).
3.For an SAOG company, the minimum stock made available to shareholders is a minimum 40 per cent.

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