Company Registration in Oman

Oman, strategically located at the crossroads of Asia, Africa, and Europe along the Persian Gulf, offers a stable economy and a dynamic environment for entrepreneurs and investors. With favorable tax policies, government incentives for foreign investment, and access to thriving regional markets, Oman is an ideal destination for business incorporation. Since 2020, foreign investors can establish companies with 100% ownership across various sectors, making it an attractive hub for global business expansion. This guide outlines the types of companies available, the registration process for a Limited Liability Company (LLC), associated costs, advantages, disadvantages, and key considerations for setting up a business in Oman.

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Types of Companies in Oman

Oman permits several business structures, each tailored to different operational needs:

• General Partnership: A partnership where all partners share unlimited liability.
• Limited Partnership: Combines general partners with unlimited liability and limited partners with liability capped at their investment.
• Limited Liability Company (LLC): The most popular choice, offering flexible governance and limited liability for shareholders.
• Joint Stock Company (Public or Closed): Public companies can list shares on the stock exchange, while closed companies remain private.
• Holding Company: Owns assets or shares in other companies for investment purposes.
• Branch Office of a Foreign Company: Extends a foreign company’s operations into Oman.
• Representative Office: Limited to marketing and liaison activities, not direct business operations.
• Joint Venture: A collaborative entity for specific projects, often involving local and foreign partners.

Understanding the LLC

The Limited Liability Company (LLC) is the preferred structure for foreign investors due to its flexibility and benefits:

• 100% Foreign Ownership: No local sponsor required, following 2020 reforms.
• Limited Liability: Shareholders’ liability is restricted to their capital contribution.
• Versatility: Suitable for free zones and mainland operations, ideal for trading, services, and manufacturing.

Note on Share Grades: Public Joint Stock Companies are classified into five grades (Excellent, First, Second, Third, Fourth) based on operational scale and revenue. LLCs, however, cannot issue public shares or list on the stock exchange. Starting at Grade 4 and progressing to Excellent as revenue grows is a strategic approach for joint stock companies, but not applicable to LLCs.

Steps to Register an LLC in Oman

1. Select a Trade Name:
   • Ensure compliance with Omani naming regulations.
   • Verify uniqueness to avoid conflicts with existing entities.
   • Submit the name in Arabic or English to the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) for approval.
2. Define Business Activities:
   • Specify all intended business activities.
   • Obtain special licenses for regulated sectors (e.g., finance, insurance, construction).
3. Choose Partners and Capital Shares:
   • LLCs allow 1–5 partners (individuals or corporations).
   • Agree on each partner’s ownership percentage.
4. Prepare Documentation:
   • Gather required documents, including passport copies, Articles of Association, and trade name approval (see full list below).
   • Utilize the Invest Easy portal to streamline submission and bypass initial office-lease requirements.
5. Open a Corporate Bank Account:
   • Deposit the minimum capital (typically OMR 150,000, varying by activity and region).
   • Select a bank experienced in international compliance.
6. Draft Governing Documents:
   • Prepare the Articles of Association and internal regulations outlining management roles, capital contributions, and profit distribution.
   • Obtain signatures from all partners.
7. Submit for Incorporation:
   • Lodge documents with the MOCIIP.
   • Receive the Certificate of Incorporation upon approval.
8. Secure Labor and Work Permits:
   • Apply for employee visas and permits through the Ministry of Labour.
9. Establish Physical Premises:
   • Lease or purchase office space suitable for your business needs.
10. Obtain Additional Permits:
    • Secure any industry-specific approvals from local municipalities or regulatory bodies.

Costs of Company Registration

License Grade Guarantees (nominal, no cash deposit required):

• Excellent Grade: OMR 250,000
• First Grade: OMR 100,000
• Second Grade: OMR 60,000
• Third Grade: OMR 50,000
• Fourth Grade: OMR 20,000

Additional Costs:

• Registration Fees: Vary by license type and region (typically OMR 1,000–3,000 for LLCs).
• Residency-Related Expenses:
  • Per shareholder: OMR 316.
  • Online registration surcharge (no initial office lease): OMR 200.
  • Example breakdown:
    • 1 shareholder: OMR 316 + OMR 300 (Ejari/commission) + OMR 316 = OMR 932.
    • 2 shareholders: OMR 632 + OMR 500 + OMR 632 = OMR 1,764.
    • 3 shareholders: OMR 948 + OMR 700 + OMR 948 = OMR 2,596.
• Family Sponsorship:
  • Spouse permit: OMR 100.
  • Child permit (each): OMR 100.
• Office Lease: OMR 5,000–15,000 annually, depending on location and size.
• Other: Plan for visa fees, living costs, and legal consultation fees (OMR 500–2,000).

Advantages of Registering a Company in Oman

• Residency Eligibility: Qualify for a two-year renewable investor visa.
• Full Ownership: 100% foreign ownership without a local partner.
• Competitive Costs: Lower registration fees compared to other GCC countries.
• Market Access: Tap into one of the region’s fastest-growing economies.
• Stability: Benefit from Oman’s political and economic stability.
• Tax Benefits: Time-limited tax exemptions and reduced initial fees.
• Strong Currency: Operate in the stable Omani rial.
• Banking: Open international corporate bank accounts with ease.

License-Specific Benefits:

Excellent Grade:

• Ideal for large-scale industries (e.g., mining, manufacturing, infrastructure).
• Enhanced government support for recruitment and public tenders.
• Permission to engage in real estate transactions.

Grades 1–4:

• Suitable for SMEs and service-based businesses.
• Allows multiple subsidiaries under one parent entity.
• No minimum turnover or proof of funds required.
• No age restrictions for shareholders.

Disadvantages

• Residency Renewal: Investor visas require renewal every two years and regular entry into Oman.
• Physical Presence: Initial registration may require in-person document signing.
• Compliance: Ongoing adherence to tax and regulatory reporting is mandatory.
• Limited Permanent Residency: Company registration does not automatically grant permanent residency.

Required Documents for Registration

Personal Documents:

• Passport copy (valid for at least 7 months).
• Passport-style photograph.
• National ID.
• Military service certificate or exemption (for male applicants).

Legal & Financial:

• Police clearance certificate (translated into Arabic).
• Financial statements of the parent company (last five years, if applicable).
• Incorporation documents for corporate shareholders (e.g., certificates of establishment, trade licenses).

Business Plan & Forms:

• Detailed business plan.
• Completed Commercial Registration (CR) form.
• Trade name approval certificate.

Office Evidence:

• Office lease agreement (unless using Invest Easy’s online process).
• Proof of corporate bank account in Oman.

Note: All documents must be notarized and, where required, translated into Arabic.

Residency and Work Permits

• Investor Visa: Two-year renewable visa for shareholders, requiring periodic entry into Oman.
• Work Permits for Employees: Valid for two years, renewable, and tied to an approved office lease or property title.
• Family Sponsorship: Available for spouses and children, with permits costing OMR 100 each.

Recommended Business Sectors

Oman’s Vision 2040 highlights high-growth sectors for investment:

Information & Communication Technology:

• Opportunities in digital infrastructure and smart cities.

Events & Hospitality:

• Demand for conferences, exhibitions, and corporate events.

Travel & Tourism:

• Potential in eco-tourism, cultural heritage, and luxury travel.

Fragrance & Cosmetics:

• Growing market for perfumes and personal care products.

Facilities Management:

• Need for commercial and residential maintenance services.

Franchising & Retail:

• Opportunities to introduce brands in food, automotive, and education.

Why Choose Oman?

Oman’s strategic location, robust economy, and investor-friendly policies make it a prime destination for business incorporation. The LLC structure, with its 100% foreign ownership and limited liability, is particularly appealing for entrepreneurs. Competitive registration costs, tax exemptions, and access to regional markets enhance Oman’s appeal. Investor visas provide a pathway to residency, while the stable Omani rial and proactive government support create an optimal environment for businesses of all sizes.