Company Formation in Oman

Everything You Need to Know

You can avoid piles of paperwork and take our assistance for company incorporation. We will assist you with Oman company registration at a reasonable cost

Get Professional Assistance for Company Formation and Registration in Oman

We establish and administer secure & efficient corporate and trust structures for HNIs, expatriates, businesses, entrepreneurs, family offices and individuals. We set up and customize these structures to meet the specific personal or business objectives of our clients. We ensure fast and efficient company formation and incorporation in Oman.

Overview

Oman is the third-largest country in the Arabian peninsula having entrepreneurship and overseas trading long been existing in Oman for many centuries and its maritime trade used to touch the shores of Africa, Europe and China.

Before the discovery of oil and gas, Oman was predominantly a rural and agrarian economy based on fisheries and agriculture. Once the oil was discovered in commercial quantities during 1964, Oman gradually moved from agrarian to an oil-based economy and production, and export of oil started dominating the government exchequer in Oman.

Sultan Qaboos Bin Said took the reign of Oman in 1970 and ruled the country till his death in 2020. Under his visionary leadership, Oman has undergone a rapid socio-economic development while upholding its cultural heritage and was a constant source of motivation to foreign investors for doing business in Oman.

Though oil and gas, reserves have rapidly boosted Oman’s economy, led by Sultan Qaboos the country actively implemented a forward-looking economic development plan focused on diversification and industrialization to reduce its dependence on oil and gas and invite foreign players for company formation in Oman.

Our Amazing Clients

You can now save time while getting company registration done and utilise that time and effort on your business.

Do your registration from anywhere

You do not need to be physically present here to set up and manage your company in Oman; so there is no need to fly here to do the process

Streamlined and simplified processes

We’ve simplified and streamlined all the processes for you to make it quick and simple to get your company started

Transparent pricing model

We do not burden you with any hidden fees. There’s just one cost to get you up and running

Benefits of Company Formation in Oman

Oman has many untapped investments and business potential in many industries such as tourism, mining, fisheries, logistics and manufacturing and the government always encourages foreign direct investment and offers various incentives and free zones to promote a business-friendly economic environment and lure foreign entrepreneurs for doing business in Oman.

Oman offers many opportunities for foreign investors to become a long term business and investment partner and invest in company formation in Oman.

Friendly Taxation
Policy

Nil income tax on personal income, lower income tax on companies, tax relief on effective double taxation treaties Oman enjoys with more than 35 countries.

Import
Exemptions

No import duty levied on Raw materials. plant and machinery for five years from the start of manufacturing activities.

Capital and Profit Repatriation

No restriction on profit and capital repatriation and dividend transfers.

Foreign
Ownership

Oman allows 100% Foreign ownership in Free Zones and 70% in other regions.

Strategic Location

Oman is the gateway to North American, European, African and Asian markets offering access to a large customer base.

Political & Economic Stability

Oman has a long reputation for political stability with controlled inflation and stable exchange rate, trade surplus and foreign currency reserves.

Diversification

Oman is well-diversified industrially which facilitates business activities through a robust supply chain.

Infrastructure

Oman has good infrastructure facilities like good roads, airports, ports with good communication networks.

Transparent Legal System

Oman has a transparent and friendly legal system offering a conducive business environment.

International Presence

Oman has ties with world economic bodies such as membership with WTO, GAFTA, GCC with free trade agreements with USA, Iceland, Singapore, Norway, Switzerland and many other countries.

Natural Resources

Oman has good reserves of Petroleum, Gas, Asbestos, Copper, Chromium and Gypsum.

Land Availability

Government leases the land with good amenities at discount.

Language

English is widely used in business and commerce

Business Climate in Oman

Barring a few numbers of trades and services, no restrictions are imposed on company formation in Oman and doing business on its soil. 100% foreign ownership of Omani companies would now be allowed under the new Foreign Capital Investment Law (FCIL) RD 50/2019 proposed in January 2020.

A few of the 37 commercial activities not allowed for 100% Foreign ownership are mentioned as under.

The restricted services, however, contribute to a small portion of Oman Economy and the new law would open up promising new sectors for 100% foreign investment and enthuse overseas companies for doing business in Oman.

The Ministry of Commerce and Industry ( MOCI) has embraced significant modernizing initiatives under the new FCIL regulation to facilitate and promote investor-friendly regimes in the Sultanate of Oman.

The new FCIL law doesn’t also stipulate the minimum share capital requirement which can transform the foreign investment landscape in Oman. The existing practice requiring a company with one or more foreign shareholders to have a minimum starting share capital of OMR 150,000 which is approximately $390,000 has now been relaxed by MOCI. However, being a new regulation it needs reconfirmation from MOCI on a case to case basis.

The new FCIL law is a revolutionary step towards globalization and modernization of Oman and will invariably bring a plethora of opportunities to the foreign business communities.

Types of Companies in Oman And Applicable Requirements

There are two most common ways of doing business in Oman and can further be classified based on company type and regulatory requirements

Business setup with a Local company

A locally incorporated company can take several forms

  • Proprietorship Company
  • Limited Liability Company
  • Free Zone Company
  • Joint Stock Company
  • Holding Company
  • Limited Partnership Company
  • General Partnership Company
  • Joint Ventures

Business setup with a foreign entity

There are three ways one can do business with a foreign entity

  • Branch office
  • Commercial Agencies
  • Representative office

Most of the Omani Companies are LLCs or limited liability companies that foreigners are willing to invest and do business with. The number of founding members should be minimum two and maximum forty.

A foreign company is permitted to own a maximum of 70% of shares of an Omani company. If there is a free trade agreement with the country of foreign national, a higher %age of shares can be allowed.

The current minimum share capital requirement for a foreign-owned LLC is OMR 150,000 unless wholly owned by Oman citizens or GCC or FTA nationals for whom the initial capital investment requirement is OMR 20,000.

For joint stock and holding companies, the initial minimum capital requirement is OMR 500,000 and OMR 2 million respectively. Initial capital requirements are usually much higher for banks, financial services and insurance companies.

Partnership Companies

The features of Omani Partnership companies are

Proprietorship

Usually, only the Oman citizens are allowed for single Proprietorship companies, GCC nationals can start a Proprietorship company under certain conditions and for specific activities.

Foreign Company Branches

Foreign entities are allowed to open representative offices however, with limited scope. A foreign company is only recommended to operate a branch that has secured a Government project contract and is only valid during the tenure of the contract.

Joint Ventures

A joint venture is formed through a joint venture agreement and by two or more entities performing a particular project. A JV has no legal status and is not registered. The Omani partner must own a minimum of 51% share.

Start your journey toward successful business

We have a great professional team. We’re able to provide best support through your business journey

Process of Registèring a Company in Oman

The process of company registration in Oman is relatively simple and straightforward and the main process steps once the initial capital is paid, are as follows

An application needs to be submitted to the Ministry of Commerce and Industry (MOCI) with a uniquely chosen name for your company highlighting and branding your products or services as you feel appropriate.

On approval of company name, shareholders documents and company constitution along with the bank certificate and authorized signatory form needs to be submitted to MOCI for company registration in Oman.

Once MOCI registration is completed, you need to get your company registered with OCCI for complying with the commercial rules and regulations required for your company.

A company seal needs to be designed and issued from the registered authorized signatory of the LLC.

Based on company type, size and nature of business; you need to obtain a set of approvals from the appropriate authorities for company registration in Oman and include

  • Tax Registration
  • Oman police registration
  • Registration with the Ministry of Manpower
  • Industrial, environmental and other permits and licenses
  • Municipality License
  • Registration with Oman Police
  • Import Export License as appropriate
  • Registration with Public Authority of Social Insurance

Once the company registration is over, all documents mentioned against point 4 needs to be obtained

Documents Required for Registration of Company in Oman

Company registration in Oman requires the following essential documents

Tax Laws in Oman

Various aspects of Taxation in Oman are

Tax Exemptions

The following are exempt from income tax in Oman

  • Dividends received from an Omani company
  • Gains on the disposal of Securities listed in Muscat Stock market
  • Omani marine companies
  • Foreign Airlines
  • Investment funds
  • Foreign companies engaged in the exploration of gas and oil
  • Foreign companies working for government projects
 

Withholding Tax

Cross border payments subjected to withholding tax and at a flat rate of 10% on the gross payment in Oman are

  • Royalties
  • Management Fees
  • Provision of Services
  • Consideration for R&D
  • Consideration for Computer Software

Indirect Tax

Personal Tax

Free Zones in Oman

There are three free zones and two special economic zones for attracting foreign investment in the country. Each zone has it’s own sets of incentives including Tax Holidays, Import Duty exemptions, Waiver on initial capital requirements and 100% foreign ownership.

Besides, there are eight Industrial Estates such as Rusayl, Sohar, Raysut, Sur, Nizwa Al Buraimi, Sumail, Al Muzanah offering highly attractive land rents, tax holidays, exemptions on machinery and equipment.

Free Zones
Special Economic Zones (SEZ)

How IMC can help you register a business in Oman?

IMC has the experience and expertise to advice customers on the suitable company type taking in to account the laws of the land and the unique customer’s needs. We have the experience having handled different industries and geographies across the world. We understand finance and the legal framework required to handle a company’s operations. We will advise on the percentage of shareholding allowed for foreigners, and the rights which go with that percentage and other such business matters. IMC has been operating in GCC for over 10 years. With a partnership in Oman, IMC is closer to the customer with a better understanding of the Oman CompanyLaws and Practices.

Accounting and Tax

Type

Limited Liability Company (WLL)

Under Oman law, foreigners can own

70%

Share Capital

OMR 20,000

Memorandum and Articles of Association

Yes

Shareholders

Minimum Two

Can the entity hire expatriate staff in Oman

Yes

Tax Registration Certificate Required

Yes

Saudi Resident Secretary Required

Yes

Type

Limited Liability Company (WLL)

Statutory audit required

Yes

How long to open Corporate Bank Account?

3 weeks

Annual Return

Must be filed

Annual Return

Must be Filed

Annual Tax

Must be filed

Timeframe for Incorporation

3 weeks

Access to Oman double tax treaties

Yes

Conclusion

IMC has an active presence in Oman and has a dedicated and experienced team of professionals who can advise you on all matters related to foreign investment and new company formation in Oman.

IMC with its expertise and long business experience in GCC countries can effectively address all your government liaisoning and representation needs for obtaining general and legal licenses and provide services for a local sponsor. IMC can also support you in preparing all your business documents and guide you on tax structures and policies.

We would be pleased to provide you with most updated information on the new FCIL RD 50/ 2019 regulations.

We’ve been
helping customers globally.

Book a consultation appointment with our professionals now.

We’ve been
helping customers globally.

Book a consultation appointment with our professionals now.

What our customers are saying

Have any project
in mind?

Let's Talk
about your project

Book a consultation appointment with our professionals now.

Reach us at

+971 4 3709963