Company Formation in Oman
Feature
Highlight the key benefits and features
- Ownership
100% Foreign Ownership (No Local Sponsor/Kafil Required)
- Required Documents
Passport Copy Only
- Minimum Capital
No Minimum Capital Deposit Required
- Timeline
7 to 14 Business Days
Why Choose Oman for Your Business?
Strategically positioned at the crossroads of Asia, Africa, and Europe, the Sultanate of Oman presents a unique and compelling value proposition for international entrepreneurs and investors. Beyond its political stability and robust infrastructure, Oman offers a business environment designed for growth and success.
100% Foreign Ownership and No Need for a Local Sponsor
One of the most significant advantages is the Foreign Capital Investment Law (Royal Decree 50/2019). This landmark legislation allows for up to 100% foreign ownership of companies in most sectors on the mainland. This eliminates the traditional requirement for a local partner (Kafil), giving you complete control over your business operations and profits
A Stable Economy and Strategic Location
Oman is committed to sustainable growth through its "Oman Vision 2040" national strategy, which focuses on economic diversification and attracting foreign investment. Its strategic location, with major deep-water ports in Salalah and Sohar, provides direct access to the world's busiest shipping lanes, making it an ideal hub for international trade, logistics, and re-export activities.
Attractive Tax Advantages
Oman provides a highly competitive tax regime. Key benefits include:
Ease of Doing Business & Government Support
The Omani government has streamlined the business setup process significantly through the "Invest Easy" online portal. This one-stop-shop system allows for quick and efficient company registration, often in just a few days. The transparent legal framework and reliable judicial system provide a secure and predictable environment for your investment.
Choosing Your Legal Structure:
Selecting the correct legal entity is a critical first step. Below is a detailed comparison of the most common structures for foreign investors.
| Feature | Limited Liability Co. (LLC) | Single Person Co. (SPC) | Free Zone Co. (FZC) | Branch Office |
|---|---|---|---|---|
| Ownership | Up to 100% Foreign | 100% Foreign (Single Owner) | 100% Foreign (Guaranteed) | 100% Foreign (Parent Co.) |
| Liability | Limited to Share Capital | Limited to Share Capital | Limited to Share Capital | Parent Company is Liable |
| Local Market Access | Full Access | Full Access | Restricted (Agent Required) | Full Access (Within Project Scope) |
| Corporate Tax | 15% Standard Rate | 15% Standard Rate | 0% for 10+ Years | 15% Standard Rate |
| Best For | Most trading & service businesses | Solo entrepreneurs & consultants | Import/Export & manufacturing | Specific government contracts |
Limited Liability Company (LLC) – The Most Popular Choice
The Limited Liability Company (LLC) is the most common and highly recommended structure for foreign investors and entrepreneurs in Oman.
An LLC is a separate legal entity from its owners (shareholders). This means your assets are protected from any business debts or liabilities; your liability is limited to the amount of capital you invested in the company. An Omani LLC can be established with one or more shareholders, who can be individuals or corporate bodies of any nationality. Thanks to recent legal reforms, it offers 100% foreign ownership for a vast range of business activities.
- Best for: Most commercial activities, including trading, services, real estate, and manufacturing for the local Omani market.
Single Person Company (SPC) – For Solo Entrepreneurs
Introduced under the new Company Law (2019), the Single Person Company (SPC) is a modern legal structure that functions similarly to an LLC, with just one owner. This is the ideal choice for individual entrepreneurs, freelancers, and consultants who want to operate a formal business with the full protection of limited liability without needing a partner. All shares are held by a single natural or legal person, providing complete control and flexibility.
- Best for: Solo business owners, consultants, and freelancers who want a formal legal entity.
Free Zone Company (FZC) – For International Trade & Tax Benefits
Oman has several strategically located free zones and special economic zones, including Sohar, Salalah, and the major Duqm Special Economic Zone (SEZAD). Registering a company within one of these zones offers a unique set of powerful incentives.
The key advantages include:
- 100% Foreign Ownership: Guaranteed, with no restrictions.
- Tax Exemptions: A minimum of 10 years of zero corporate tax, which can be extended for specific projects.
- Customs Duty Waivers: No customs duties on imported goods, machinery, and raw materials used for production within the zone.
- Free Capital Repatriation: No restrictions on repatriating profits and capital.
However, a free zone company is typically restricted to operating within the zone’s boundaries or for international trade (import/re-export).
- Best for: Manufacturing, logistics, warehousing, and international trading operations.
Branch & Representative Offices – For Established Foreign Companies
- Branch Office: An extension of a foreign parent company. It can conduct business and earn revenue, but is generally only permitted if the foreign company holds a specific contract with the Omani government or a state-owned entity.
Representative Office: A limited-activity office for a foreign company to promote its brand and conduct market research. It is not allowed to conduct any revenue-generating activities or commercial transactions.
Which Structure is Right for You?
| Feature | Limited Liability Company (LLC) | Free Zone Company (FZC) |
|---|---|---|
| Ownership | Up to 100% Foreign Ownership | 100% Foreign Ownership (Guaranteed) |
| Business Scope | Full access to the local Omani market | Primarily within the free zone & for international trade |
| Corporate Tax | 15% Standard Rate (3% for some SMEs) | 0% for a minimum of 10 years |
| Customs Duties | Standard duties apply | 0% on imports into the zone |
| Best For | Services, trading, and operating within Oman | Manufacturing, logistics, and global re-export |
The Step-by-Step Registration Process
Thanks to significant government initiatives, the process of registering a company in Oman has become remarkably efficient and transparent. Most steps are completed online through the Ministry of Commerce, Industry, and Investment Promotion’s (MOCIIP) Invest Easy portal, a one-stop shop for business services.
Here is a clear, step-by-step guide to what you can expect.
Step 1: Choose Your Business Activity & Legal Structure
Before starting the paperwork, you must finalize two key decisions:
Your specific business activities.
The legal structure that best fits those activities (e.g., LLC, SPC, or Free Zone), as detailed in the previous section.
Some specialized activities (e.g., in tourism, healthcare, or education) may require pre-approval from the relevant ministry before you can proceed with the commercial registration.
Step 2: Reserve Your Company Name
Your company name must be unique and comply with Omani naming regulations. You can check for name availability and reserve your chosen name directly through the Invest Easy online portal. This is a quick process that provides an initial approval for your trade name.
Step 3: Prepare the Required Documents
You will need to gather the necessary documentation for all shareholders and directors. While the full checklist is in the next section, the primary document required for foreign nationals is a clear copy of each founder’s passport.
Step 4: Draft and Sign the Constitutive Documents
The primary legal document for an LLC is the Memorandum of Association (also known as the constitutive document). This document outlines the company’s name, objectives, share capital, names of the shareholders, and management structure. The Invest Easy portal provides standard templates that can be used.
Step 5: Submit Your Application Online
With your documents prepared, you can complete the company registration application via the Invest Easy portal. This involves filling out the required forms and uploading scanned copies of your documents. As part of this process, you will also be registered with the Oman Chamber of Commerce and Industry (OCCI), which is a mandatory requirement for all businesses.
Step 6: Pay the Government Fees
Once your application is reviewed and initially approved, you will be prompted to pay the official government fees for company registration and your OCCI membership. This payment is typically made online through the portal’s integrated payment gateway.
Step 7: Receive Your Commercial Registration (CR)
After the payment is successfully processed, the MOCIIP will issue your Commercial Registration (CR) certificate. This document, which includes your unique CR number, officially proves your company’s legal existence in the Sultanate of Oman. With your CR in hand, you are legally ready to start your business operations.
5 Common Mistakes to Avoid When Registering a Company in Oman
Navigating a new market can have its challenges. Here are five common pitfalls to avoid:
Choosing the Wrong Business Activity Code:
This can limit your future operations. It’s crucial to select the right codes from the start
Not Planning for Omanization:
Failing to account for the mandatory hiring quotas for Omani nationals can cause issues with obtaining work visas for your expat staff later on.
Underestimating Administrative Timelines:
While the registration is fast, post-registration steps like visa processing and bank account opening require time and proper documentation.
Signing an Inadequate Office Lease:
Your physical address has legal implications. Ensure your lease agreement is officially registered.
Ignoring Tax Registration:
Failing to register with the Oman Tax Authority promptly after incorporation can lead to penalties.
Required Documents & Costs: A Transparent Breakdown
One of the most appealing aspects of company formation in Oman is its straightforward and transparent process. We believe in providing complete clarity on what you need to prepare and what costs to expect.
Checklist of Required Documents
Preparing your documents in advance is the key to a fast and smooth registration process.
What You Don't Need (Addressing Common Concerns)
To simplify the process, Omani authorities have removed several previously required hurdles for most standard business setups:
A Transparent Breakdown of Costs
The total cost of setting up your company in Oman can be broken down into two main categories: official government fees and professional service fees. Below is an estimated breakdown for a standard LLC.
| Expense Item | Estimated Cost (OMR) | Notes |
|---|---|---|
| Commercial Registration (CR) | ~ 200 OMR | Includes trade name reservation and official publication fees. |
| Chamber of Commerce (OCCI) Membership | ~ 100 - 150 OMR | Annual fee, depends on the company grade. |
| Omanet Service Package | Varies | Covers our expert handling of the entire process. See our service plans for details. |
| Office Rental (Annual) | Varies | A physical or virtual office is required for an address. |
| Document Attestation & Translation | Varies | Only applicable if you have corporate shareholders. |
Note: The costs are estimates and subject to change based on official regulations and the specifics of your business activity.
Post-Registration Essentials: Visa, Banking, and Compliance
Receiving your Commercial Registration (CR) certificate marks the official birth of your company, but it is the beginning of your operational journey in Oman. Several essential steps follow to ensure your business is fully functional, compliant, and ready for growth.
Receiving your CR is just the beginning. We guide you through the critical next steps:
Investor Visa & Residency Card (Bitaqa)
Secure your 2-year renewable residency, allowing you to live and work in Oman and sponsor your family.
Corporate Bank Account
Open your business bank account to manage finances and conduct international transactions.
Tax Registration
We ensure you are correctly registered with the Oman Tax Authority for Corporate Tax and VAT.
Opening a Corporate Bank Account
A corporate bank account is mandatory for conducting all your business transactions, from receiving payments to managing expenses. With your official company documents in hand, you can approach any of the reputable local and international banks in Oman.
- The Commercial Registration (CR) Certificate.
- The OCCI (Chamber of Commerce) Membership Certificate.
- The company's Memorandum of Association.
- Passports and Omani Resident Cards (Bitaqa) of all authorized signatories.
Note: While there is no longer a requirement to deposit share capital before registration, some banks may require a minimum initial deposit to activate the corporate account.
Registering
Post-Registration Essentials
Registering with the Oman Tax Authority
All companies in Oman must register with the Oman Tax Authority shortly after incorporation. This is a mandatory step to receive your Tax Identification Number (TIN). You will also need to register for Value Added Tax (VAT) if your business’s annual turnover is expected to exceed the mandatory registration threshold (currently OMR 38,500).
Understanding Omanization Requirements
عمانیسازی is a national policy aimed at increasing the employment of Omani citizens in the private sector. All companies operating in the Sultanate are required to meet a specific quota of Omani employees, which varies by industry sector and the size of the company. Complying with Omanization targets is crucial for securing and renewing work permits (clearances) for your expatriate staff. Planning for and integrating Omani talent into your workforce is a key part of building a sustainable and respected business in the country.
Why Choose Omanet? Your Strategic Partner in the Oman Market
Choosing a partner for your company setup is a critical decision. At Omanet, we are more than just registration agents; we are your strategic partners in the Omani market.
Transparent Guidance
We provide clear, honest advice. Our goal is to empower you with the right information, helping you understand the real costs, timelines, and requirements.
Expert Execution
Our team leverages deep, local expertise to manage the entire process efficiently, saving you time and preventing costly mistakes.
Beyond Registration
We connect you to a thriving business ecosystem. By joining Omanet, you gain access to a network, marketing tools, and insights to help your business grow long after it's established.
Expert Consultation & Strategy
Our team is composed of experienced business and marketing professionals with deep knowledge of the Omani market. We don’t just file paperwork; we take the time to understand your specific business goals to recommend the most effective and efficient legal structure for your venture.
A Transparent and Efficient Process
We are committed to a clear, fast, and hassle-free process. We handle all the complexities of dealing with government portals, preparing documents, and meeting legal requirements, allowing you to focus on what matters most: your business plan. Our pricing is transparent, with no hidden fees.
More Than Just Registration – Join a Business Ecosystem
When you register your company with Omanet, you are not just receiving a license; you are gaining premier access to Oman's leading business hub. Your new company will be featured in our comprehensive directory, connecting you with a network of potential clients, partners, and suppliers from day one. We provide the platform and tools to help you grow long after your registration is complete.
Start Your Business in Oman Today
Don’t let paperwork and complex regulations hold you back from your ambitions. Our team of experts is ready to manage the entire process for you, from initial name reservation to receiving your final documents and assisting with your visa application.
Take the first step towards launching your successful venture in the Sultanate.
Schedule a free, no-obligation consultation to discuss your business goals.
سوالات متداول (FAQ)
Can a foreigner own 100% of a company in Oman?
Yes. Under the Foreign Capital Investment Law (Royal Decree 50/2019), it is now possible for foreign nationals to have 100% ownership of a company in most business sectors. The traditional requirement for a local Omani sponsor (kafil) has been eliminated for these activities, giving you full control.
How long does the entire registration process take?
The process of registering your company, from reserving the name to receiving your final Commercial Registration (CR) certificate, typically takes between <strong>7 to 14 business days</strong>, assuming all required documents are prepared correctly
What is the minimum capital I need to start a business?
For most standard Limited Liability Companies (LLCs), there is no mandated minimum share capital that you need to deposit into a bank account before registration. You can officially state a share capital that is appropriate for your business needs without having to block the funds.
Do I need to be physically present in Oman to register the company?
No, the company formation process can be completed remotely. By appointing Omanet as your legal representative, we can handle all the necessary paperwork and submissions on your behalf. You will only need to visit Oman later to finalize your visa, residency card, and banking procedures.
After registering my company, can I get residency for my family?
Yes. Once you have successfully obtained your Investor Visa and Omani Resident Card (Bitaqa), you are eligible to sponsor residency visas for your immediate family members, including your spouse and children.
Can I open an international bank account with my Omani company?
Absolutely. Once your company is registered and you have your residency, you can open both corporate and personal bank accounts in Oman’s reputable international and local banks. These accounts will allow you to conduct transactions globally without restrictions.
Are my company's profits taxed in Oman?
Oman has a competitive corporate tax rate of 15% on net profits. However, a key advantage is that there is zero personal income tax. This means any profits or dividends you take from your company are not taxed at a personal level.
Do I have to hire Omani employees?
Yes, all companies operating in Oman must comply with Omanization policies, which require hiring a certain percentage of Omani nationals. This percentage varies depending on the industry and the size of your company. We can provide guidance on these requirements to ensure you remain compliant
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