Starting a business in Oman as a foreigner is more straightforward than it used to be. The government has made big changes to attract international investors, and that’s great news if you’re planning to enter the Omani market. Today, with the right documents, the right business idea, and some expert guidance, you can fully own and run a business in Oman—even without a local partner.
Why Foreigners Are Choosing Oman in 2025
Oman is known for its strategic location, stable economy, and open market. It sits between the Gulf, Asia, and Africa, making it a powerful hub for trade. In 2025, the government continues to support foreign investment by easing rules and cutting red tape.
Foreign entrepreneurs now benefit from:
- 100% ownership in many sectors
- Low corporate tax rates
- Simplified company registration
- Access to free zones with tax incentives
- A fast-growing economy supported by Vision 2040
These advantages are helping Oman stand out as a top destination for starting a business in the Gulf.
Step-by-Step Process to Start a Business in Oman (2025 Update)
Here’s how you can start your business as a foreigner:
Choose Your Business Activity
You’ll need to decide exactly what your business will do. Oman allows a wide range of activities—from trading and construction to IT services, logistics, and hospitality. Each activity may require different licenses or approvals.
Pick the Right Business Structure
The most popular options for foreigners are:
- Limited Liability Company (LLC)
- Free Zone Company
- Branch Office
Each structure has its own pros and cons depending on your needs. For instance, LLCs offer flexible ownership, while Free Zone companies give you tax benefits.
Reserve a Trade Name
Your business name must be approved by the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP). It must be unique and relevant to your business activity.
Submit Documents and Apply for Commercial Registration
The required documents usually include:
- Passport copies of shareholders
- A business plan
- Shareholder agreements (if any)
- A lease agreement (for office or shop)
- Initial capital details
Once submitted and verified, you’ll receive a Commercial Registration Certificate.
Apply for the Business License
You’ll need a license to operate legally. Types of licenses include:
- General Trade License
- Professional License
- Industrial License
- Tourism or Healthcare License (if applicable)
Licenses are issued based on your activity and may require further approvals from different ministries.
Visa Services for Foreign Investors in Oman
You’ll also need the right visas for yourself, your employees, and your family.
Investor Visa
This visa is issued to foreign investors after company registration. It usually lasts 2–3 years and is renewable.
Employment Visa
You’ll need this for your team. It allows them to work legally in Oman and access local services.
Dependent Visa
Your spouse and children can apply for this visa once your investor or employment visa is approved.
Tax in Oman: What Foreigners Need to Know
Oman has a simple and investor-friendly tax system. Corporate tax is 15%, and there’s no personal income tax, which makes it attractive for foreigners. Some sectors enjoy tax exemptions, especially in free zones. Understanding Oman’s tax rules helps you plan better and stay compliant from the start.
Corporate Tax
The general corporate tax in Oman is 15%, but small businesses may qualify for exemptions. If you’re setting up in a Free Zone, you might enjoy a tax holiday of up to 10 years.
VAT (Value Added Tax)
Introduced recently, VAT in Oman is 5%. It applies to goods and services, though some sectors like education and health may be exempt.
Best Business Structures for Foreigners in Oman
Foreign investors in Oman often choose between a Limited Liability Company (LLC), a Free Zone Company, or a Branch Office. These structures offer flexibility, 100% foreign ownership in many sectors, and simplified registration. Choosing the right one depends on your goals, industry, and operational needs.
Limited Liability Company (LLC)
An LLC is the most flexible option for many. Foreigners can now own 100% of the company in most sectors, and the capital requirement is low. It’s great for services, trading, and general business activities.
Free Zone Company
Free zones like Knowledge Oasis Muscat (KOM) or Sohar Free Zone are ideal if your business focuses on export or manufacturing. You get 100% ownership, no import/export duties, and tax holidays.
Branch Office
If you already run a business outside Oman, a branch office allows you to operate under your parent company. This setup is useful for companies offering specialized services or contracts with the government.
Business License Services in Oman
There are expert agencies and business license providers in Oman that help foreigners get the correct licenses. They’ll handle your paperwork, follow up with authorities, and speed up approvals.
If you’re not sure which license suits your activity, it’s best to consult a business setup consultant in Oman.
Benefits of Starting a Business in Oman as a Foreigner
Starting a business in Oman as a foreigner comes with real advantages. You get full ownership in many sectors, low startup costs, and access to a stable, growing market. Oman also offers supportive government policies, tax perks, and modern infrastructure—making it easier for international investors to succeed and grow.
Full Ownership
Foreigners can now enjoy 100% ownership in most sectors without needing a local Omani sponsor. This allows for full control of operations, profits, and decision-making, making Oman highly attractive for international investors.
Low Operating Costs
Oman offers affordable business setup costs, including office rent, labor, and logistics. Compared to other Gulf nations, the overall expenses are significantly lower, giving startups and small businesses room to grow sustainably.
Safe Environment
Oman is known for its political stability, safety, and welcoming attitude toward foreign investors. The country’s consistent policies and secure atmosphere make it a reliable place to start and run a business.
Growing Market
There is growing demand and opportunity in sectors like tourism, information technology, manufacturing, healthcare, education, and renewable energy. Oman’s Vision 2040 strategy supports diversification and innovation across these key industries.
Free Zone Perks
Setting up in an Omani free zone provides many advantages like tax exemptions, custom duty waivers, and simplified licensing. Businesses benefit from flexible ownership terms and easy access to international markets.
Oman’s Economic Vision 2040 & Foreign Investment
Oman’s Vision 2040 is driving reforms across the economy. It focuses on:
- Reducing oil dependency
- Developing private sectors
- Attracting global investors
As a foreign entrepreneur, you can benefit from these plans by aligning your business with sectors like technology, logistics, green energy, and manufacturing.
Conclusion
Setting up a business in Oman as a foreigner in 2025 is a smart move. With investor-friendly laws, 100% foreign ownership, easy registration, and tax incentives, the environment is built for success. Whether you want to set up in a Free Zone, open a branch, or start a service business, Oman welcomes you.
Business Setup in Oman is no longer complicated—especially when you partner with the right experts who know the process inside out.
FAQs
Can I start a business in Oman without a local partner?
Yes, in most sectors, Oman allows 100% foreign ownership. You no longer need a local Omani sponsor unless specified by law.
What is the minimum capital required to start a business in Oman?
The minimum capital for an LLC is often as low as OMR 20,000, but it depends on the type of business and its structure.
Do I need to be physically present in Oman to register a company?
In most cases, yes. However, with the help of a consultant or power of attorney, you can start the process remotely.
How long does it take to register a company in Oman?
It usually takes 7–14 working days if all documents are ready and approved.
Can foreigners buy property in Oman for business purposes?
In some areas and sectors, yes. Free Zones offer flexible leasing terms. But full property ownership for foreigners is still limited.
