Setting up a company in Oman as a foreigner requires the assistance of local lawyers.
| Quick Facts | |
|---|---|
Company formation cost in Oman | Starting from OMR2,350 |
| Types of companies | – LLC, – Sole Proprietary Company (SPC), – freezone LLC/SPC, – branch – Representative trade office. |
Minimum share capital | No minimum capital requirement for the LLC/SPC. |
Minimum number of shareholders | One shareholder for the SPC, more than one for the LLC |
| Number of directors | Board of Directors with an odd number of individuals |
| Local director required (Yes/No) | Not mandatory |
| Residency requirements for foreign company owners | Not applicable |
| Corporate tax rate | 15% |
| Dividend tax rate | Not applicable |
| VAT Rate | – 5% standard rate, – 0% reduced rate |
| Number of Double Taxation Treaties (approx. ) | 30 |
| Annual accounting/filing requirements | – a single tax return within 4 months of the accounting year end; – auditing requirements apply |
| Special licenses | Yes, mandatory |
Table of Contents
What are the main documents required for company formation in Oman?
| Document | Corporate Shareholder | Individual Natural Person Shareholder |
| Identification | Commercial registration document | Passport copy/ Civil ID |
| Constitutional Documents | Articles of Association | N/A |
| Resolutions | Board Resolution (for company establishment and appointment of authorised signatory), and any additional resolutions depending on the company structure | N/A |
| KYC | Company docs and details submitted | KYC through MoCIIP platform for non-residents |
| Attestation | Required | N/A |
What are the main steps for opening a company in Oman?
Investors who want to set up a company in Oman must follow a few steps for registration:
1 Step – Company Formation and Registration
- Starts with registration of shareholders/partners with the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), including KYC compliance if the shareholders are individuals;
- Reservation and availability check of the proposed company name;
- Collection, review, and verification of required information and documents from theshareholders and directors, including coordination of attestation of foreigndocuments;
- Preparation and submission of incorporation applications, board resolutions, powersof attorney, and related documents to MoCIIP;
- Liaison with MoCIIP and other relevant authorities;
- Obtaining the Commercial Registration (CR) certificate of the new company;
- Registration of the new company with the Omani Chamber of Commerce and Industry.
2 Step – Activity Licensing
- Advising and selecting on the appropriate business activities in accordance withOmani laws and regulations that suits the business requirements;
- Application and issuance of the relevant business activity license(s) and approvalsfrom MoCIIP and/or other competent authorities.
3 Step – Tax Registration
- Registration with the Tax Authority for Corporate Income Tax and obtaining the TaxIdentification Number (TIN);
- Registration for VAT, where applicable and subject to the requirements prescribedunder Omani law.
What are the official costs for opening an Omani company?
The applicable government admin fees and third party costs are estimated as follows:
- Commercial registration : 1,020 OMR;
- Activity license: ranges between 35 OMR to 445 OMR (depending on the selected activity);
- Tax registration: 20 OMR;
- Foreign Ministry attestation: 45.75 OMR;
- Translation: 3-5 OMR per paper.
Prices for our packages
The price for the Company Formation Package starts at OMR2,350 and increases depending on complexities, added services and company activities. The starting package includes company registration & incorporation process, business activity licensing and tax registration. Any additional services such as support with the bank, office space and visas/work permits are added on services and will increase the rate.
What are the main types of companies/ entities you can open in Oman?
Investors who wish to open a company in Oman are required to choose a business form that suits their needs. There are several options, each with its own particularities and advantages.
Our lawyers specializing in starting a business in Oman list the main types of business entities below:
• Mainland Limited Company: the LLC allows for full ownership and control, and a high level of operational flexibility. Moreover, there is no minimum capital requirement;
• The Sole Proprietary Company: the SPC is fully owned by a single shareholder, it is also a business form with no minimum capital requirements that allows for a high degree of operational flexibility;
• Free zone companies: these can be set up as an LLC or SPC and they will only be involved in trading (for example, import and/or export activities);
• Branch: set up as per a specific government contract. Our team can give you more details;
• Representative office: used only for promotional activities, cannot be involved in trading.
How can you obtain a business license in Oman?
Most businesses require licensing in order to engage in their specific activities in Oman. These permits are issued by the municipality and/or the Royal Omani Police.
Examples of activities that require special licensing include: import (the import of livestock, plants, pesticides, etc.), commercial and recreational fishing, medical and healthcare services (such as those undertaken by pharmacists, nurses, radiologists, laboratory technicians, etc.), and others.
If you want to open a company and obtain business licenses in another country, such as UAE, we can get you in touch with our local partners from BridgeWest Dubai. They can help you obtain the trade license for your company in Dubai in just a few weeks since you submit all the required documents.
Contact our lawyers if you need additional information about the general requirements for company formation in Oman as well as to receive personalized assistance throughout the process.