Oman is rapidly emerging as one of the most attractive investment destinations in the GCC, offering 100% foreign ownership in most sectors, no personal income tax, and a stable business environment. Its strategic location, connecting Asia, Africa, and the Middle East, makes it a prime hub for trade, logistics, tourism, and industrial projects.
This guide explains the company formation process in Oman, available business structures, requirements, and compliance rules so you can start your business smoothly.
1. Business Structures in Oman
The most common legal entities for investors include:
- LLC (Limited Liability Company): Most popular for SMEs and foreign investors; 2–50 shareholders; liability limited to share capital.
- Sole Proprietorship: Owned by a single individual; suitable for small-scale businesses; full liability on owner.
- Joint Stock Company: For large-scale projects; minimum capital requirement; can be public or closed.
- Branch Office: Allows foreign companies to operate in Oman under their existing legal identity.
- Representative Office: Can conduct market research and liaison activities but cannot generate revenue.
2. Step-by-Step Process to Start a Company in Oman
Step 1 – Choose Your Business Activity
- Select an approved activity from Oman’s Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) list.
- Activities such as banking, insurance, or healthcare require additional government approvals.
Step 2 – Select Your Legal Structure
- Decide on the entity type (e.g., LLC, branch office) based on ownership requirements and capital needs.
Step 3 – Reserve Your Trade Name
- Apply through the Invest Easy portal or MoCIIP for name reservation.
- The name must be unique, not infringe trademarks, and reflect your business type.
Step 4 – Prepare & Notarize the Constitutive Documents
- For an LLC, prepare the Memorandum of Association (MOA) and other incorporation documents.
- Notarize them with a public notary in Oman.
Step 5 – Obtain Regulatory Approvals
- Certain sectors require clearances from relevant ministries (e.g., Ministry of Health, Ministry of Tourism).
Step 6 – Lease a Commercial Office
- A physical office address is mandatory for commercial registration. Lease agreements must be registered with the municipality.
Step 7 – Deposit Share Capital
- Deposit the required share capital in an Omani bank and obtain a capital deposit certificate.
Step 8 – Commercial Registration (CR) Issuance
- Apply for the CR via the Invest Easy portal, submit documents, and pay the registration fees.
Step 9 – Post-Registration Compliance
- Register for VAT (if applicable).
- Register with the Ministry of Labour for employee recruitment.
- Open a corporate bank account.
3. Required Documents for Company Registration in Oman
- Passport copies of shareholders and directors
- National ID (for Omani partners)
- Trade name reservation certificate
- Notarized MOA and Articles of Association (AOA)
- Office lease agreement
- Share capital deposit certificate
- Regulatory approvals (if applicable)
4. Benefits of Starting a Company in Oman
- 100% foreign ownership allowed in most activities
- No personal income tax
- Competitive corporate tax rates (15% for most sectors)
- Strategic location for regional and international trade
- Political stability and investor-friendly laws
- Access to GCC, Arab League, and international markets through free trade agreements
5. Popular Business Sectors in Oman
- Oil & Gas Services
- Tourism & Hospitality
- Logistics & Warehousing
- Fisheries & Agriculture
- Manufacturing & Industry
- E-commerce & IT Solutions
6. FAQ – Oman Company Formation
Can a foreigner own 100% of a company in Oman?
Yes, under Oman’s new foreign capital investment law, most activities allow 100% foreign ownership.
How long does company registration take?
On average 7–15 working days, depending on approvals.
What is the minimum capital requirement?
For most LLCs, there is no minimum capital, but certain regulated activities may require higher capital.
Is VAT applicable in Oman?
Yes, Oman applies a 5% VAT on taxable supplies.
Is a local sponsor mandatory?
No, unless the activity is restricted to Omani nationals.
Conclusion
Oman’s pro-investment policies, tax benefits, and strategic location make it a top choice for entrepreneurs looking to establish a presence in the Gulf. By following the correct process and working with an experienced business setup consultant in Oman, you can ensure a smooth and compliant company registration.
