Oman is emerging as a business-friendly destination for entrepreneurs and investors due to its strategic location, tax benefits, and supportive business regulations. Whether establishing a small enterprise or a large multinational company, company registration in Oman follows a structured process that ensures legal compliance and smooth business operations.
Understanding the Oman business registration process is crucial for those looking to expand their operations in the Middle East. This guide explores the step-by-step process, legal requirements, costs, and benefits of setting up a business in Oman.
Overview of Company Registration in Oman
Oman has positioned itself as one of the most business-friendly destinations in the Middle East, offering a streamlined company registration process, investor-friendly policies, and strategic economic partnerships. The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) oversees company formation in Oman, ensuring a structured and transparent process for both local and foreign investors.
Business Structures and Foreign Investment
Businesses in Oman can be registered as Limited Liability Companies (LLCs), Joint Stock Companies (SAOG/SAOC), Free Zone Entities, or Branches of Foreign Companies. With the introduction of the Foreign Capital Investment Law, international investors can now establish companies with 100% foreign ownership in selected sectors, reducing the reliance on local sponsors.
The Role of the USA in Oman’s Business Landscape
The United States and Oman share strong trade relations, reinforced by the U.S.-Oman Free Trade Agreement (FTA), which came into effect in 2009. This agreement eliminates tariffs on most consumer and industrial products, making Oman a strategic gateway for U.S. companies looking to expand in the Middle East and beyond. The U.S. Department of Commerce actively encourages American businesses to invest in Oman, particularly in sectors such as oil and gas, technology, infrastructure, and logistics.
Several major U.S. corporations, including Occidental Petroleum, Bechtel, and Honeywell, have established a strong presence in Oman, benefiting from tax incentives, trade advantages, and a stable business environment. Moreover, the Omani-American Business Council (OABC) plays a crucial role in strengthening bilateral economic ties, helping U.S. investors navigate Oman’s corporate landscape.
With company registration in Oman becoming more accessible to foreign investors, U.S. businesses are well-positioned to take advantage of Oman’s free trade zones, low taxation policies, and growing market opportunities, making it a lucrative destination for expansion in the GCC region.
Benefits of Company Registration in Oman
Oman offers numerous advantages to businesses and investors looking to establish a company. The government has implemented various policies to attract foreign direct investment, providing tax benefits, legal protections, and economic incentives. These benefits of company registration in Oman make it one of the most favorable destinations for business setup in the Middle East..
100% Foreign Ownership in Free Zones
Foreign investors can fully own their businesses in Oman’s free zones without requiring a local partner. This is a significant advantage for international companies looking for independent operations. Free zones such as Sohar, Salalah, Duqm, and Al Mazunah provide a business-friendly environment with regulatory ease, infrastructure support, and global connectivity.
Low Corporate Tax Rates and Tax Exemptions
Oman offers one of the lowest corporate tax rates in the region, making it highly attractive for investors. Free zone companies enjoy complete tax exemptions, while mainland businesses benefit from a standard corporate tax of only 15%. Additionally, there is no personal income tax, making it favorable for business owners and employees. Certain industries, such as tourism, industrial manufacturing, and agriculture, receive extended tax holidays and incentives.
No Restrictions on Profit Repatriation
Companies in Oman can repatriate 100% of their profits and capital without any restrictions. This ensures financial flexibility for foreign investors and multinational businesses operating in Oman. The absence of foreign exchange limitations allows smooth international transactions and secure business operations.
Strong Legal Protection for Investors
Oman has established clear legal frameworks to protect business owners, ensuring their rights are safeguarded. The Foreign Capital Investment Law prevents unauthorized government intervention in private businesses, offering protection against expropriation. The legal system provides dispute resolution mechanisms, ensuring fair treatment of foreign investors in business conflicts. Oman also enforces strict intellectual property laws, allowing companies to secure trademarks, copyrights, and patents.
Access to Free Trade Agreements (FTAs) and Global Markets
Oman has signed several free trade agreements, allowing businesses to trade with major global economies without heavy tariffs. The GCC Free Trade Agreement enables duty-free trade with Saudi Arabia, UAE, Bahrain, Kuwait, and Qatar. The US-Oman Free Trade Agreement grants Omani companies tariff-free access to the US market, encouraging export-based businesses. Additionally, Oman has preferential trade agreements with Asian and European countries, expanding its business reach.
No Import and Export Duties for Free Zone Companies
Businesses operating in Omani free zones benefit from zero import and export duties, significantly reducing operational costs. This makes Oman a prime location for international trade, manufacturing, and logistics companies looking to establish a supply chain hub. Free zone businesses are also exempt from customs duties on raw materials and machinery imports.
Business-Friendly Policies and Government Support
The Omani government has simplified the business registration process through the Invest Easy Portal, enabling online applications for company incorporation, licensing, and approvals. Fast-track licensing procedures help businesses launch operations more quickly. Oman also offers financial grants and government-backed funding programs for businesses in industrial, agricultural, and technology-based sectors. Public-private partnership initiatives encourage foreign investment in infrastructure and energy projects.
Stable Economy and Growing Market Opportunities
Oman has a stable and growing economy, supported by key industries such as oil and gas, tourism, manufacturing, logistics, and technology. The government’s Vision 2040 plan focuses on economic diversification, creating new opportunities in renewable energy, real estate, and industrial sectors. Foreign investors benefit from a secure economic environment with consistent policy reforms to enhance business operations.
Simplified Visa and Residency Process for Investors
Oman provides investor-friendly visa programs to facilitate foreign business ownership. The Investor Visa allows foreign entrepreneurs to obtain long-term residency in Oman. Work visas and residency permits for employees are also streamlined, making it easier for companies to hire skilled professionals from around the world. The government has also introduced long-term residency visas for high-net-worth investors and business owners.
Access to a Skilled Workforce
Oman has a well-educated and skilled workforce across various industries. Sectors such as engineering, financial services, IT, healthcare, and energy have a strong talent pool. Companies in Oman can employ expatriates while complying with Omanization policies, which require businesses to hire a certain percentage of Omani nationals. This balance enables businesses to maintain a qualified workforce while contributing to local employment initiatives.
Free Trade Agreements
Oman has established multiple Free Trade Agreements (FTAs) that provide businesses with tariff reductions and preferential trade access to major global markets. These agreements enhance trade opportunities, reduce import/export costs, and encourage foreign investment. Businesses registered in Oman can benefit from these FTAs to expand their operations internationally while maintaining competitive pricing.
GCC Free Trade Agreement
Oman is a member of the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the UAE, Kuwait, Bahrain, and Qatar. Under the GCC Free Trade Agreement, businesses in Oman can trade goods and services across GCC countries without customs duties. This makes Oman a strategic base for companies looking to supply products to the broader Gulf region.
US-Oman Free Trade Agreement
The United States-Oman Free Trade Agreement (FTA) eliminates tariffs on almost all consumer and industrial products traded between the two countries. Omani businesses exporting to the US can benefit from duty-free access, allowing them to compete with international companies in the American market. Similarly, US-based companies operating in Oman can import goods without facing high customs duties, promoting bilateral trade.
Trade Agreements with European and Asian Markets
Oman has preferential trade agreements with various countries in Europe and Asia, facilitating smoother trade relations. The EU-GCC Cooperation Agreement promotes trade between Oman and European nations, ensuring better market access and reduced trade barriers. Additionally, Oman maintains strong economic ties with China, India, and Japan, making it an ideal location for businesses involved in manufacturing and export industries.
Exemptions on Import and Export Duties
Many Omani free zones offer businesses complete exemption from import and export duties, making the country a cost-effective hub for international trade. Companies that manufacture goods in Oman can export to FTA partner countries without incurring heavy customs fees, improving profit margins and global competitiveness.
These Free Trade Agreements make Oman an attractive destination for businesses involved in trade, export, and global supply chain operations, providing long-term cost savings and expanded market access.
LLC Formation
Setting up a Limited Liability Company (LLC) in Oman is one of the most popular business structures for both local and foreign investors. An LLC formation provides a flexible and secure way to establish a business while ensuring limited liability protection for its shareholders. The Omani government has streamlined the LLC registration process, making it an efficient and investor-friendly option for those looking to operate in Oman’s growing economy.
Key Features of LLC Formation in Oman
- Requires a minimum of two shareholders and can have up to 50 shareholders
- Shareholders’ liability is limited to their capital investment, meaning personal assets are protected from business debts
- No minimum capital requirement for most LLCs, except for certain regulated industries
- LLCs can engage in a wide range of commercial, industrial, and professional activities
- The company can operate anywhere in Oman, unlike free zone companies that are restricted to specific zones
Foreign Ownership in LLCs
Previously, foreign investors were required to have an Omani partner holding 30% of shares. However, with new foreign investment laws, certain business activities now allow 100% foreign ownership without a local sponsor. This provides more control and operational freedom for international investors.
LLC Tax Benefits and Financial Flexibility
- LLCs benefit from Oman’s low corporate tax rate of 15%, with tax exemptions for specific industries
- No personal income tax on business owners and employees
- LLCs are allowed to open corporate bank accounts, secure financing, and apply for trade licenses
- No restrictions on profit repatriation, allowing foreign investors to send earnings back to their home country
Omanization Requirements for LLCs
To support local employment, Oman enforces an Omanization policy, requiring LLCs to hire a certain percentage of Omani nationals. The required percentage varies based on industry and business size. Companies that comply with Omanization policies may receive government incentives and tax benefits.
Why Choose LLC Formation in Oman?
- Strong legal protection under Omani corporate laws
- Flexibility in business activities and operations
- Full control over management and decision-making
- Eligibility to trade both locally and internationally
LLC formation in Oman is an excellent choice for investors looking for a legally secure, tax-efficient, and highly flexible business structure that allows full commercial operations within Oman’s market.
No Requirement of Resident Shareholder
One of the key advantages of company registration in Oman is that foreign investors are not required to have a resident shareholder for certain business structures. This benefit provides greater ownership flexibility and control over the company, making Oman a highly attractive destination for international businesses and entrepreneurs.
Understanding the Legal Business Structures in Company Registration in Oman
Choosing the right legal structure is one of the most critical steps in the company registration in Oman process. Different types of companies can be established based on business needs::
Sole Proprietorship
- Owned by a single individual
- Best for freelancers and small businesses
- Limited liability for business debts
Limited Liability Company (LLC)
- Most common business structure in Oman
- Requires at least two shareholders
- Suitable for small and medium-sized enterprises (SMEs)
Joint Stock Company
- Ideal for large businesses
- Can be public or private
- Requires at least three shareholders
Branch of a Foreign Company
- Allows international businesses to operate in Oman
- Must appoint a local service agent
- Requires approval from the Ministry of Commerce and Industry (MOCI)
Free Zone Company
- 100% foreign ownership allowed
- No corporate taxes
- Operates in designated free zones (e.g., Salalah, Sohar, Duqm)
Selecting the right company incorporation in Oman depends on the business activity, ownership preferences, and investment plans.
Minimum Eligibility Criteria for Company Registration in Oman
The company registration in Oman process is straightforward, but businesses must meet certain eligibility criteria before incorporation. These requirements vary depending on the business structure, ownership type, and industry sector. Understanding these minimum criteria helps investors ensure compliance with Omani regulations and avoid unnecessary delays.
Business Structure Selection
Investors must choose an appropriate business structure before registering their company. Oman offers several options, including:
- Limited Liability Company (LLC) – Ideal for small to medium-sized businesses.
- Joint Stock Company (SAOC/SAOG) – Suitable for large corporations and public listings.
- Free Zone Company – Allows 100% foreign ownership with tax benefits.
- Branch Office of a Foreign Company – Enables international businesses to operate in Oman.
The eligibility requirements differ for each legal entity, making it important to choose a structure that aligns with the business goals.
Minimum Capital Requirements
While minimum capital requirements have been relaxed for many business types, some sectors still require a specific investment threshold:
- No minimum capital for most Limited Liability Companies (LLCs).
- OMR 150,000 for fully foreign-owned businesses in the mainland.
- OMR 500,000 or more for large-scale joint stock companies (SAOC/SAOG).
- Varied capital requirements for free zone companies, depending on the sector.
Foreign Ownership Regulations
Oman allows 100% foreign ownership in many industries, particularly in free zones and certain mainland business activities under the Foreign Capital Investment Law. However, some sectors still require an Omani partner or sponsor with at least 30% ownership.
Business Activity Approval
The proposed business activity must be approved by the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP). Certain sectors, such as banking, insurance, and telecommunications, require additional approvals from sector-specific regulatory authorities.
Trade Name Registration
A unique trade name must be registered with MOCIIP. The name should:
- Be relevant to the business activity.
- Not contain offensive or restricted words.
- Be distinguishable from existing businesses in Oman.
Office Space Requirement
Businesses must secure a physical office address in Oman to complete registration. Companies in free zones must have an office within the designated free zone area, while mainland businesses can establish operations anywhere in Oman.
Visa and Employment Eligibility
Businesses planning to hire foreign employees must meet Omanization requirements, ensuring a percentage of Omani nationals are employed in the company. Investors can apply for:
- Investor Visa – For business owners and stakeholders.
- Employment Visas – For foreign workers meeting job eligibility criteria.
Tax and Financial Compliance
All companies must register with the Oman Tax Authority and comply with VAT regulations. Businesses operating in free zones enjoy tax exemptions, while mainland companies are subject to a standard 15% corporate tax.
Meeting these minimum eligibility criteria ensures a smooth and compliant company registration in Oman, allowing businesses to operate legally and efficiently in the growing Omani market.
Documents Required for Company Registration in Oman
When establishing a business in Oman, ensuring that all necessary legal documents are prepared and submitted is essential for a smooth registration process. The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) oversees company registration in Oman, requiring specific documentation based on the business structure, ownership type, and industry sector.
Having the right documents in place prevents delays and ensures compliance with Omani business laws. Below are the key documents required for registering a company in Oman.
Shareholder and Investor Identification Documents
- Copies of passports for all foreign shareholders and investors.
- National ID copies for Omani shareholders, if applicable.
- Visa copies for foreign investors, depending on the business structure.
- Residence proof or address details for all company owners.
Memorandum of Association (MoA) and Articles of Association (AoA)
The Memorandum of Association (MoA) and Articles of Association (AoA) outline the company’s:
- Business activities and objectives.
- Shareholding structure and capital distribution.
- Roles and responsibilities of shareholders.
- Company management and operational guidelines.
These documents must be notarized and approved by the Omani authorities before submission.
Trade Name Registration Certificate
- The chosen company name must be unique and compliant with Omani naming regulations.
- Business owners must apply for trade name approval from MOCIIP before proceeding with incorporation.
Initial Business Approval from Authorities
- Certain industries require additional approvals from specific government departments.
- For example, financial businesses must seek approval from the Central Bank of Oman, while healthcare businesses require clearance from the Ministry of Health.
Lease Agreement or Office Address Registration
- A company in Oman must have a physical office space or registered address.
- A lease agreement (Ejari certificate) must be provided as proof of business premises.
Bank Account Opening Documents
- Businesses must open a corporate bank account in Oman and provide:
- Company registration certificate.
- Shareholder details.
- MoA and AoA copies.
- Capital deposit receipt (if required).
Tax and Financial Registration
- All companies must register with the Oman Tax Authority for corporate tax compliance.
- VAT registration is required if the company’s annual turnover meets the required threshold.
Having all necessary documents in order ensures a hassle-free company registration in Oman, allowing businesses to operate legally and efficiently in the growing Omani market.
Step-by-Step Process for Company Registration in Oman
The process of company registration in Oman involves several key steps, starting with selecting a business structure and obtaining initial approvals from the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP). Investors must register a trade name, submit legal documents, secure a business license, and complete tax and visa formalities before commencing operations.
Step 1: Choose a Business Activity
Selecting the right business activity is essential, as it determines licensing requirements and operational restrictions. The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) provides a list of approved business activities.
Step 2: Select the Business Structure
Decide on the legal structure that best suits the business, such as LLC, Joint Stock Company, or Free Zone Entity.
Step 3: Reserve a Trade Name
A unique company name must be reserved with the MOCIIP. The name should:
- Be distinctive and relevant to the business
- Not infringe on trademarks
- Comply with Omani business laws
Step 4: Obtain Initial Approvals
Submit an application for initial approval, which includes:
- Business plan and proposed structure
- Shareholder details
- Proposed location of the company
Step 5: Draft and Notarize the Company’s Documents
Legal documents must be prepared and notarized, including:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Shareholder agreements
Step 6: Secure Office Space and Register with Municipality
Every business must have a physical address. Registering with the municipality ensures compliance with local regulations and zoning laws.
Step 7: Apply for a Business License in Oman
The type of business license depends on the industry and location. The main licenses include:
- Commercial License (for general trading and services)
- Industrial License (for manufacturing and production)
- Professional License (for consultancy and professional services)
Step 8: Register for Tax and Obtain a Tax Identification Number (TIN)
Businesses must register with the Oman Tax Authority to obtain a Tax Identification Number (TIN). Some free zone companies benefit from 0% corporate tax.
Step 9: Open a Corporate Bank Account in Oman
A corporate bank account is required for financial transactions. Banks may require:
- Trade license and registration certificate
- Shareholder details
- MoA and AoA
Step 10: Obtain Employee Visas and Work Permits
If hiring employees, companies must apply for Omani work visas and labor permits through the Ministry of Labor.
Once these steps are completed, the business is fully registered and can begin operations in Oman.
Mainland vs. Free Zone Company Registration in Oman
Understanding the differences between Mainland vs. Free Zone Company Registration in Oman is crucial for investors. Mainland companies can operate locally, while free zone businesses enjoy tax exemptions and 100% foreign ownership.
| Feature | Mainland Company | Free Zone Company |
| Ownership | Local sponsor required in some cases | 100% foreign ownership |
| Corporate Tax | 15% (may vary by industry) | 0% tax in many zones |
| Business Scope | Operate anywhere in Oman | Limited to free zone areas |
| Trade License | Required for mainland activities | Issued by free zone authorities |
| Import/Export Duties | Standard customs charges apply | No import/export duties |
| Visa Sponsorship | Limited based on company size | Flexible visa quotas |
Choosing between mainland vs. free zone depends on business activity, target market, and expansion plans.
Cost of Company Registration in Oman
The cost of company registration in Oman depends on the business structure, industry, and location. Below is an approximate breakdown:
| Expense Type | Estimated Cost (OMR) |
| Trade Name Registration | 50 – 200 |
| MOCIIP Fees | 150 – 500 |
| Notary and Legal Fees | 100 – 500 |
| Business License Fee | 300 – 1,000 |
| Office Rental (Annual) | 2,000 – 10,000 |
| Employee Visa Fees (Per Person) | 300 – 600 |
Costs may vary based on free zone incentives, industry type, and business activities.
Common Challenges in Company Registration & How to Overcome Them
Setting up a business in Oman offers significant benefits, but foreign investors and entrepreneurs often face challenges during the company registration process. These challenges typically arise due to legal and regulatory complexities, licensing requirements, and banking regulations. By understanding these obstacles and implementing the right solutions, investors can streamline their company registration in Oman and ensure a smooth and compliant business setup.
Legal and Regulatory Challenges
Oman’s business laws are designed to protect investors and regulate commercial activities, but navigating these regulations can be complex, especially for foreign entrepreneurs unfamiliar with local corporate policies. The requirements for company formation, ownership structure, and taxation vary depending on business type, industry sector, and foreign investment regulations.
Solution:
- Work with a local business consultant or a legal expert who specializes in company registration in Oman.
- Ensure compliance with the Foreign Capital Investment Law, which governs foreign ownership and investment regulations.
- Familiarize yourself with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) requirements, which oversee business activities and ensure legal compliance.
- Verify whether your business falls under sectors requiring additional government approvals, such as finance, healthcare, or telecommunications.
By proactively addressing legal and regulatory challenges, businesses can avoid unnecessary delays and ensure a hassle-free company setup in Oman.
Business Licensing and Compliance Issues
One of the most critical steps in company registration in Oman is obtaining the necessary licenses and permits. Different industries have specific licensing requirements, and failing to secure the correct approvals can lead to legal penalties and operational restrictions. Some business activities require multiple regulatory approvals, making the process more time-consuming.
Solution:
- Consult with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) to verify the required business licenses before finalizing your business activity.
- If operating in regulated industries such as banking, healthcare, or telecommunications, ensure compliance with the relevant sector-specific regulatory authorities.
- Utilize the Invest Easy Portal, an online government platform, to simplify the licensing application process.
- Keep all business documents organized and up to date to facilitate quicker approvals.
Properly managing business licensing and compliance ensures that companies operate legally and avoid fines or disruptions in operations.
Bank Account Opening for Foreigners
Opening a corporate bank account in Oman is a mandatory requirement for business operations, but foreign investors may encounter strict banking regulations, extensive documentation requirements, and verification procedures. Some banks require physical presence for account setup, while others impose minimum capital requirements, making it difficult for foreign entrepreneurs to access banking services.
Solution:
- Choose international-friendly banks in Oman that offer tailored services for foreign investors. Some of the top banks for foreign businesses include Bank Muscat, Bank Dhofar, and HSBC Oman.
- Prepare and submit all required documentation, including your business license, Memorandum of Association (MoA), and shareholder details to expedite the account opening process.
- Work with a business consultant who can assist in the banking application and compliance process.
- Consider banking with Omani free zone banks, which provide simplified account opening procedures for businesses registered in Sohar, Salalah, or Duqm Free Zones.
By selecting the right banking institution and preparing proper documentation, foreign investors can overcome the challenges of opening a corporate bank account and ensure smooth financial transactions for their business in Oman.
Conclusion
Company registration in Oman offers businesses a strategic advantage in the Middle East. With low taxation, a stable economy, and foreign investor-friendly policies, Oman is an excellent destination for entrepreneurs.
To ensure a smooth Oman business setup process, working with an experienced business setup company in Dubai can help navigate legal procedures, licensing, and compliance requirements. By following the correct procedures, investors can establish a successful business presence in Oman and capitalize on growing market opportunities.
Frequently Asked Questions About Company Registration in Oman
1. How long does company registration take in Oman?
The time required for company registration in Oman depends on the business structure and approvals required. On average:
- A Limited Liability Company (LLC) takes 7 to 14 business days.
- A Free Zone Company can be set up within 5 to 10 business days.
- A Joint Stock Company (SAOC/SAOG) or a Branch Office may take longer, typically 3 to 4 weeks, due to additional approvals.
2. Can a foreigner own a business in Oman?
Yes, foreigners can own businesses in Oman. The Foreign Capital Investment Law (Royal Decree No. 50/2019) allows 100% foreign ownership in certain sectors, especially in free zones. However, some mainland businesses may still require a local Omani partner holding at least 30% ownership unless the activity is exempted from local sponsorship requirements.
3. What are the tax benefits of registering a company in Oman?
Oman offers several tax advantages for businesses, including:
- 0% personal income tax for business owners and employees.
- 15% corporate tax rate for most businesses, which is lower than many other Gulf countries.
- Tax exemptions of up to 10 years for companies in specific sectors such as manufacturing, tourism, and agriculture.
- No customs duties for businesses operating in Omani free zones.
4. What is the main regulatory authority for company registration in Oman?
The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) is the primary regulatory body responsible for company registration in Oman. It oversees:
- Business licensing and approvals.
- Compliance with investment laws and trade regulations.
- Foreign ownership policies and capital investment requirements.
5. Can a foreigner own majority shares in an Omani company?
Yes, foreign investors can own majority shares in an Omani company under the Foreign Capital Investment Law. The ownership percentage depends on the business activity:
- In many sectors, foreigners can own 100% of the company without a local partner.
- In restricted industries, a local Omani shareholder holding at least 30% ownership is required.
- Businesses in Omani free zones can enjoy full foreign ownership with no restrictions.
6. Is a foreign company allowed to open a branch and representative office in Oman?
Yes, a foreign company can establish:
- A Branch Office, which can operate commercially in Oman but requires approval from MOCIIP.
- A Representative Office, which is not allowed to engage in direct commercial activities but can conduct market research and promotional work for its parent company.
7. What is the minimum capital required for company registration in Oman?
The minimum capital requirement depends on the business structure and ownership type:
- OMR 20,000 – Required for an LLC owned by Omani or GCC nationals.
- OMR 150,000 – Required for an LLC with foreign shareholders.
- OMR 500,000 or more – Required for Joint Stock Companies (SAOC/SAOG) or large-scale enterprises.
8. What is the form of legal system followed in Oman?
Oman follows a civil law system influenced by Islamic Sharia law. The commercial laws are based on common law principles, ensuring a structured business environment. Business disputes are settled in Omani commercial courts, which provide an efficient resolution process for corporate and contractual matters.
9. What is the law that regulates foreign investment in Oman?
The Foreign Capital Investment Law (Royal Decree No. 50/2019) regulates foreign investment in Oman. This law:
- Allows 100% foreign ownership in approved business activities.
- Provides investment protections for international entrepreneurs.
- Outlines tax benefits and financial incentives for foreign companies.
10. What is the liability of shareholders in an LLC?
In an Omani Limited Liability Company (LLC), the liability of shareholders is limited to their capital contribution. This means that shareholders are not personally liable for the company’s debts beyond their investment in the business.
11. What are the main laws that regulate employment in Oman?
The Employment Law (Sultani Decree No. 35/2003) governs employer-employee relationships in Oman. It regulates:
- Hiring and employment contracts.
- Minimum wages, working hours, and overtime policies.
- Employee rights, benefits, and end-of-service gratuity.
- Omanization policies, requiring businesses to hire a percentage of Omani nationals.
