How to set up business in Oman with 100% foreign ownership?

100% Foreign Ownership Requirements

With the introduction of the new law, foreign companies, investors and citizens in Oman can have 100% ownership in many industries in mainland Oman. Although, few activities in the mainland Oman still require local ownership or local partner with a minority shareholding. In all, there are around 37 activities that are restricted for 100% foreign ownership which includes transportation, manpower recruitment, translation services, automotive and vehicle repairs and tailoring to name a few.

Requirement Relating To Consultancy Services In Oman

If you are offering consultancy services, you need local Omani shareholder that can be a company or an individual. The local partner needs to hold at least 35% shares in the company. Although the minimum share capital requirement to own OMR 150,000 has been relaxed. However, a part amount from this needs to be shown as proof of funds.

Documents Required For 100% Foreign Owned Business Setup In Oman

Individual shareholders need to furnish their passport copy. While corporate shareholders need to furnish company incorporation documents such as memorandum of association, trade license, certificate of incorporation,  certificate of incumbency and a board resolution and power of attorney regarding Oman company formation. The above mentioned documents should be notarised, legalised and attested by the country of origin. The concerned authority needs to send these documents to the PPG in Oman for legal translation and stamping.

Other Requirements Include:

Business plan with details including investment cost, project description and commencement date of the project.

CR application form with the below mentioned details:

• Proposed name of the company
• Shareholding structure with the percentage of holding and details of the nationality of the shareholders.
• Proposed company grade ranging between 4 to 1 (1 being the excellent grade). For Grade 4, the share capital requirement is OMR 20,000 and it goes up to OMR 150,000 for Grade 1, and OMR 250,000 for an excellent grade. There is no longer a requirement to deposit the share capital before opening a company.
• Company’s financial year.
• Activities that the company proposes to carry out.
• Details of the manager and authorised signatories of the company.

Procedure To Set-Up LLC Company In Oman With 100% Foreign Ownership

Fee For Setting Up A Company In Oman With 100% Foreign Ownership

With the enforcement of new law, the overall government registration fee is OMR 3500. This covers the fee for the Ministry of Commerce and Industry, Chamber of Commerce, Ministry of Finance and Ministry of Manpower. Besides this, you have to pay for the Municipality Licence cost depending on the value of lease and activities undertaken by the company. The registration fee of Oman Customs Government is OR 20.

How Can IMC Group Help You?

IMC Group has been operating in the GCC for over 10 years. We can assist you in setting up a 100% foreign owned company in Oman. We can also advise you on the shareholding percentage requirements for foreigners and the rights which go with that percentage and other such business matters. In addition, we can also assist you with drafting your incorporation documents, listing out the documents required to be filed, documents to be notarized and other formalities. For more information, get in touch with us.