You can easily open a business in Oman as a foreigner by following a few simple rules. This article lists the main advantages for investors, along with a few issues to consider when starting out. For comprehensive information on the company incorporation steps, please read this article written by our local team of experts.
| Quick Facts | |
|---|---|
| Entry requirements for EEA citizens | Visa-free for short-term purposes |
| Entry requirements for non-EEA citizens | Specific requirements according to nationality. Citizens of certain countries can enter visa free for limited periods. |
| Mandatory residency required to open a company in Oman as a foreigner | Prior residency arrangements are not required. |
| Residency by investment scheme available (Yes/No) | Yes |
| Minimum investment amount for residency by investment (if applicable) | RO250,000 in corporate investments or for purchasing qualifying property. Other conditions apply. |
| Relocation with family members for foreign investor residence permit holders | Yes |
| Types of companies available to foreign investors | – limited liability companies; – branches; – partnerships. |
| Full foreign ownership permitted | In most sectors |
| Operation costs in Oman | – company registration fees; – license fees; – office rental; – other costs (see below for some details). |
| Oman payroll costs | The employer contributes 13.5% of the monthly salary of the employee to social security and 1% of the monthly salary for industrial illness insurance. |
| Accounting costs (approx.) | Can start at OMR 300 per month, depending on package. |
| Employment costs (minimum salary) | OMR 350 for Omani nationals |
| Office rental costs (approx.) | In Muscat, monthly rent rates can start at OMR 300 for an unfurnished office. |
| Number of companies incorporated each year (approx.) | The number of commercial registrations with foreign investors in the first quarter of 2024 was 47,287. |
| Regulatory environment makes it easy to open a business in Oman as a foreigner (Yes/No) | Yes |
Table of Contents
How are foreign investments treated under Omani law?
The new Foreign Capital Investment Law, valid from January 1, 2020, offers significant improvements for foreigners interested in doing business in the Sultanate.
Under the old law, to open a business in Oman as a foreigner, one would have been subject to limitations. Today, entrepreneurs can invest in and provide services in Oman subject to adequate licensing and approval, in business sectors that require this.
In addition to allowing foreigners to start a business in Oman, the 2020 Foreign Capital Investment Law also sets forth certain provisions for incentives that can be available for selected investment projects. These specifically target initiatives in less developed areas. When you start a company in Oman as a foreigner in selected areas, you can benefit from tax exemptions and custom fees exemptions, subject to conditions.
Is Oman an easy country to do business in?
According to the Ease of Doing Business Index published by the World Bank Group, Oman scores well in the following categories (per the 2020 publication):
- The general score of starting a business was 93.5 out of 100;
- The score on paying taxes was 90.2 out of 100 (in terms of how facile tax payments are in this jurisdiction);
- The score of trading across borders was 84.1 out of 100.
Moreover, it is easy to open a business in Omanas a foreigner given the fact that:
- There is no minimum paid-in capital;
- The time required to open a business is minimum;
- There aren’t many procedures related to business setup in this jurisdiction.
The business registration process is a simplified one, given the fact that the registration of the legal entity and that of the employees takes place via a one-stop-shop portal provided by the Commercial Registry.
Some of the basic costs required to register a business include the business registration costs and the those associated with making a company seal.
What do you take into account when you start a business in Oman as a foreigner?
Taking into account that the new Foreign Capital Investment Law has extended the opportunities available to foreign investors, if you want to open a company in Oman as a foreigner, it is advisable to:
- Explore the opportunities and the regulations in your target business sector;
- Find out what special permits and licenses you might need. Oftentimes, you will have to obtain a license for an investment project and additional special permits and licenses. Our team can give you more details;
- Know what procedures you have to follow for business creation and ongoing business management (such as hiring and paying your employees, submitting annual tax returns, and so on);
- Be aware of the fact that certain competent authorities will be monitoring your business and, in some cases, inspect the premises.
Are foreign investors subject to special rules in Oman?
As a foreign investor, you will have to make sure that you are compliant with the entry and stay conditions in the Sultanate, in addition to those related to business creation. If you want to open a company in Oman as a foreigner, you will have to apply for a visa that suits your purpose of stay. This can be done online, and visa conditions can depend on the applicant’s nationality. For example, citizens of the Gulf Cooperation Council countries do not require a visa for entry.
Contact us for more information on how to open a business in Oman as a foreigner. Our lawyers can also help you company formation in Oman with no minimum share capital required for LLC.