Business setup and company formation in Oman

Why set up a business in Oman?

Oman sits outside the Strait of Hormuz on the shipping lanes that connect the Gulf with India, East Africa and Europe. Since the Foreign Capital Investment Law came into force in January 2020, foreign investors can own 100% of a company in most activities, with no local partner and no fixed minimum capital for most companies. Running costs, office rents and salaries are generally lower than in neighbouring hubs, and the country's ports at Sohar, Salalah and Duqm give direct access to GCC and Indian Ocean markets.

The government's Oman Vision 2040 programme is pushing investment into logistics, manufacturing, tourism, mining, fisheries, renewable energy and technology. That brings incentives, particularly inside the free zones and special economic zones, where income-tax holidays and customs exemptions are available.

How we set up your company

1. Free consultation. We review your activity, shareholders, budget and how many visas you need, and confirm whether foreign ownership is allowed for your activity.
2. Structure and location. We recommend the right legal form (LLC, SPC, branch or free zone company) and a location that fits your market.
3. Registration. We reserve your trade name, prepare the incorporation documents and obtain your Commercial Registration through the Ministry of Commerce, Industry and Investment Promotion (MOCIIP).
4. Licences and approvals. Municipality licence, Chamber of Commerce membership and any sector approvals your activity needs. See our business licences guide.
5. Bank account and visas. We prepare your corporate bank account application and process investor and employment visas.
6. Ongoing compliance. Accounting, corporate tax, VAT, renewals and PRO services after launch.

The full step-by-step sequence, with timings, is in our company registration process guide.

Mainland or free zone?

For a detailed comparison read mainland vs free zone in Oman, or compare all legal forms on our structures comparison page.

How much does it cost to start a business in Oman?

A simple mainland company with a flexible office and no visas usually costs from about OMR 1,500 to OMR 3,500 in the first year, including government fees, chamber membership, municipality licence and office. Each visa adds work permit, medical, residence card and insurance costs. Free zone costs depend on the zone and on whether you lease land, a warehouse or an office. Our Oman business setup cost guide itemises every fee, and the cost calculator gives you a personalised estimate.

Business in Oman for foreigners

Foreign investors can run a business in Oman with 100% ownership in most activities, without an Omani sponsor, and can start the registration remotely with a power of attorney. We are MakeMyCompany (MakeMyCompany), a Muscat-based team that handles company formation, company registration and the licences, visas and bank account that follow, in Muscat, Sohar, Salalah and across Oman.

Frequently asked questions

Can a foreigner own 100% of a company in Oman?

Yes. Under the Foreign Capital Investment Law (Royal Decree 50/2019), foreign investors can own 100% of a company in most commercial, industrial and service activities. A short list of activities remains reserved for Omani nationals, so we check your activity codes before filing.

How long does company formation in Oman take?

Once documents are ready, the Commercial Registration itself is usually issued within a few working days. The full setup, including municipality licence, chamber membership, tax registration and bank account, typically takes three to six weeks. Visas take additional time after that.

Do I need to visit Oman to register a company?

Not for the registration itself. Documents can be signed and attested abroad and filed through a power of attorney. Most banks, however, ask the authorised signatory to attend in person to open the corporate account, and residence visas require a medical test in Oman.

Is there a minimum capital requirement?

There is no fixed minimum capital for most companies owned by foreign investors since 2020. Joint stock companies and some regulated activities (such as financial services) do have statutory minimums, and banks may expect capital that matches your business plan.

What taxes will my company pay?

Companies pay 15% corporate income tax on taxable profit, or 3% if they qualify as a small company. VAT is 5% once taxable supplies pass the registration threshold. There is currently no personal income tax; a 5% tax on individual income above OMR 42,000 a year is scheduled from 2028. See our Oman tax system guide.

Official sources

Requirements and fees change, so confirm current details with the authority concerned. This page is general guidance, not legal advice.

• Ministry of Commerce, Industry and Investment Promotion (MOCIIP) – licensing, commercial registration policy and the list of restricted activities.
• Invest Easy – the government portal for registering companies and licences.
• Oman Tax Authority – corporate tax, VAT and tax card registration.
• Royal Oman Police – residence, visit and work visa rules.