Company formation in Oman is a process involving several stages. Investors are expected to meet the general conditions for company incorporation and to apply for the registration of the new business according to the chosen business form. Setting up a company in Oman can be easier with our assistance.
|Types of companies||
– limited liability company,
– closed stock company,
– joint stock company
Minimum share capital
– RO 500,000 for the closed stock company,
– RO 2 million for the joint stock company
Minimum number of shareholders
3 for the closed companies
|Number of directors||Board of Directors with an odd number of individuals|
|Local director required (Yes/No)||
|Conditions for company formation||
– the percentage of foreign ownership cannot be more than 70%;
– special approvals are needed for joint stock companies;
– companies need to submit their constitutive documents and register
|Residency requirements for foreign company owners||
|Time frame for the incorporation (approx.)||
– 1 week for the closed stock company;
– 1 month for the joint stock company
|Corporate tax rate||15%|
|Dividend tax rate||–|
– 5% standard rate,
– 0% reduced rate
|Number of Double Taxation Treaties (approx. )||
|Annual accounting/filing requirements||
– a single tax return within 4 months of the accounting year end;
– auditign requirements apply
|Tax exemptions or incentives||
– special tax exemption for 5 years for companies in selected fields;
– tax deductions for certain taxpayers;
– others may apply
Together with our team, local and foreign investors are able to select a business form that suits their needs, as well as handle the subsequent steps for business registration and compliance, including the initial stages of business permit and license application and hiring employees according to the Omani laws.
Read below to find out more about the general conditions to open a company and reach out to our lawyers in Oman who specialize in company law for personalized answers to any of your business questions.
Table of Contents
General conditions for company formation 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:
- Individual company: this is a business form set up by a single individual; it can be seen as the Omani equivalent of the sole trader, as the founder is fully liable for the debts and obligations of the business; a minimum capital applies in this case; our agents specializing in company formation in Oman can give you more details;
- General partnership: formed by 2 or more business partners who are jointly responsible for the funds of the company as well as its debts;
- Limited partnership: also incorporated by 2 or more partners, however, in this case, the of the two is fully liable and the other is only liable for the debts of the business up to the amount of his investment in the company;
- Limited liability company: formed by 2 or more founders, with no more than 40 partners; the shareholders have limited liability, up to the amount of the capital they invest in the business; investors interested setting up a company in Oman will often chosen this business form.
- Stock company: formed by at least 3 ordinary individuals; there is the closed stock company and the general stock company; a minimum capital of 500,000 OR is required for companies that do not subscribe their shares.
Investors who open a company in Oman should take into account the required minimum capital, as well as the minimum number of founders needed to form a new legal entity. For most business purposes, the limited liability company is a popular and convenient choice.
Other options include the joint venture company as well as the company branch, which is an extension of a foreign company. Our Omani lawyer can give you more details about each of the aforementioned business forms.
The main steps for company formation in Oman
Once investors choose the business form that will suit their business needs, the actual company formation process, which involves the registration of the new business, can begin.
Our lawyers in Oman list the following essential steps:
- Name registration: a unique commercial name is reserved for the company prior to commencing the procedures for starting a business in Oman;
- Documents: these are the company’s constitutive documents, accompanied by the founder’s identification documents;
- Company registration: the process of setting up a business in Oman requires business form, including branches of international companies, to obtain a commercial license; this is the commercial business registration phase;
- Licensing: in addition to the commercial registration, companies operating in selected business fields will need additional licenses and permits.
As described above, company formation in Oman is a multi-step process during which local assistance may be required. We invite you to reach out to our lawyers if you have any questions.
Additional requirements for setting up a business in Oman
Investors who open a company in Oman also need to comply with the applicable taxation and reporting requirements. We list the most important taxes for companies below:
- 15% – this is the corporate income tax rate applicable to all businesses, including branches;
- 5% – the standard value added tax which was recently introduced in the jurisdiction;
- 0% – the reduced or zero-rated value added tax applicable to supplies such as financial or healthcare services, among others;
- 10.5% – the employer’s social security contribution, calculated as a percentage of the monthly salary; investors who open a company in Oman need to observe the local rules for hiring employees set forth by the Ministry of Manpower.
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.