A manpower license in Oman authorises a company to legally recruit, supply, and manage workers on behalf of client businesses. The license is issued through a two-authority process: the company entity is registered with the Ministry of Commerce, Industry and Investment Promotion (MOCIIP), and the manpower supply or recruitment agency licence is approved by the Ministry of Labour (MoL). Both registrations must be in place before a manpower agency can legally place workers with employers in Oman.
Oman has two distinct categories of manpower license: a manpower supply license for companies that employ workers directly and deploy them to client sites, and a manpower consultancy license for agencies that recruit workers on behalf of employers without directly employing the workers themselves. The requirements, bank guarantee amounts, and Omanisation obligations differ between the two categories. This guide covers both license types, the step-by-step registration process, documents required, costs, and the bank guarantee requirement that blocks most applications that are not properly prepared.
Manpower Supply License vs Manpower Consultancy License in Oman
| Factor | Manpower Supply License | Manpower Consultancy License |
| What it permits | Company directly employs workers and deploys them to client businesses under a secondment arrangement | Agency recruits workers on behalf of employer clients; the employer is the direct sponsor of the worker |
| Employer of record | The manpower supply company is the legal employer and work permit sponsor | The client employer is the legal sponsor; the agency facilitates the recruitment |
| Bank guarantee requirement | Higher bank guarantee required due to direct employment obligations | Lower bank guarantee; varies by Ministry of Labour assessment |
| Omanisation quota | Subject to Omanisation ratio requirements applied to the agency’s own headcount | Subject to Omanisation requirements; specific ratio set by Ministry of Labour |
| Best suited for | Large-scale labour supply to construction, industrial, hospitality, and facility management sectors | International recruitment agencies, domestic worker recruitment, executive search firms |
Requirements for a Manpower License in Oman
The Ministry of Labour sets specific minimum requirements that a company must meet before a manpower supply or recruitment agency licence is approved. The key requirements are:
Company Registration Requirement
The manpower agency must first be registered as a legal company with MOCIIP. The permitted business activity on the Commercial Registration must specifically include manpower supply, labour recruitment, or human resource consultancy. Registering a company without the correct activity code and then applying for a manpower licence from the Ministry of Labour will result in rejection. The most appropriate legal structure for a manpower supply company in Oman is an LLC company, which allows multiple shareholders and is accepted by the Ministry of Labour for manpower licensing.
Physical Office Requirement
The Ministry of Labour requires a permanent, dedicated commercial office for the manpower agency. The office must have a valid tenancy agreement, must not be shared with unrelated businesses, and must be accessible to both employers placing recruitment orders and job seekers or workers being processed. Virtual office addresses are not accepted for manpower license applications. The tenancy agreement must be registered and must remain valid throughout the license period.
Bank Guarantee Requirement
This is the requirement that most new applicants are not prepared for. The Ministry of Labour requires a bank guarantee to be submitted as a condition of manpower license issuance. The bank guarantee protects against wage defaults and non-performance of obligations to deployed workers. The guarantee is issued by an Oman-licensed bank on behalf of the company. Indicative bank guarantee requirements are:
| License Category | Indicative Bank Guarantee (OMR) |
| Manpower supply company (direct employment model) | 15,000 to 30,000 depending on planned worker headcount and MoL assessment |
| Manpower consultancy or recruitment agency | 5,000 to 15,000 depending on recruitment scope and MoL assessment |
| Domestic worker recruitment agency (family manpower) | 5,000 to 10,000 per Ministry of Labour assessment for domestic recruitment categories |
The bank guarantee must be maintained throughout the license validity period and is separate from the company’s operating capital. It cannot be used for business expenses and is returned to the company only after the manpower license is cancelled and all worker-related obligations are settled. Companies that cannot meet the bank guarantee requirement should consult a business setup consultant in Oman before submitting their application to avoid rejection.
Documents Required for Manpower License in Oman
| Document | Notes |
| Commercial Registration certificate | Must include the manpower or recruitment activity code issued by MOCIIP |
| Trade license (copy) | Current and valid trade license from MOCIIP |
| Memorandum of Association (MoA) | Notarised copy showing company structure, shareholders, and capital |
| Valid tenancy agreement for agency office | Must be a commercial-use premises with the lease registered in the company name |
| Bank guarantee letter | Issued by an Oman-licensed bank in the amount specified by the Ministry of Labour for the licence category |
| Shareholder passports or ID documents | Valid passports for foreign shareholders; National ID for Omani shareholders |
| Manager’s valid residence card | Valid Omani residence card for the appointed general manager if a foreign national |
| OCCI membership certificate | Current Oman Chamber of Commerce and Industry membership |
| Workforce plan or business plan | Ministry of Labour may request a plan showing the intended sectors, nationalities to be recruited, and expected placement volume |
How to Get a Manpower License in Oman: Step-by-Step Process
| Step | Action |
| 1 | Register the company with MOCIIP through the Invest Easy portal with the correct manpower or labour recruitment activity code. The trade name must be approved and must not conflict with existing registered names. An LLC is the standard structure for a manpower supply company in Oman. |
| 2 | Secure a physical commercial office with a valid registered tenancy agreement. The office must be accessible and dedicated to the manpower business activity. |
| 3 | Register with the Oman Chamber of Commerce and Industry (OCCI) and obtain the annual membership certificate. |
| 4 | Apply to an Oman-licensed bank for the bank guarantee in the amount required by the Ministry of Labour for the relevant licence category. The bank will assess the company and issue the guarantee letter. This step can take two to four weeks. |
| 5 | Submit the manpower licence application to the Ministry of Labour through the Labour portal at mol.gov.om with all required documents including the bank guarantee letter, Commercial Registration, MoA, tenancy agreement, and OCCI certificate. |
| 6 | The Ministry of Labour reviews the application and may conduct a site inspection of the office premises. Inspection is standard for new manpower agency applications and assesses whether the office meets the minimum requirements for a licensed recruitment operation. |
| 7 | Pay the Ministry of Labour manpower licence fee after the application is approved. The licence is issued for one year and must be renewed annually alongside the MOCIIP trade licence renewal. |
| 8 | Register the company labour file with the Ministry of Labour and enrol staff in the Social Protection Fund. The company can then begin processing work permits and employment visas for workers placed with client employers. |
Cost of Getting a Manpower License in Oman (2026)
| Cost Item | Estimated Cost (OMR) |
| MOCIIP commercial registration and trade license (first year) | 600 to 2,000 |
| OCCI annual membership fee | 100 to 400 |
| Ministry of Labour manpower licence fee | 300 to 800 |
| Bank guarantee (blocked capital, not a fee) | 5,000 to 30,000 depending on licence category |
| Commercial office tenancy (annual) | 1,200 to 6,000 depending on location and size |
| Municipality business licence | 200 to 800 |
| Notarisation and legal documentation | 200 to 600 |
| PRO and company formation service | 500 to 2,000 |
| Total estimated first-year cost (excluding bank guarantee) | 3,100 to 12,600 |
The bank guarantee is the largest financial requirement but is not a fee or a government charge. The guarantee amount remains on deposit with the bank and is returned when the licence is cancelled and obligations are cleared. Operating costs including the bank guarantee mean that the realistic first-year capital commitment for a new manpower supply company in Oman ranges from OMR 18,000 to OMR 45,000 when the bank guarantee deposit is included alongside setup and operational expenses.
Omanisation Requirements for Manpower Companies in Oman
Manpower supply companies in Oman are subject to Omanisation quota requirements set by the Ministry of Labour. The Omanisation ratio determines what percentage of the agency’s own employees must be Omani nationals. This ratio is separate from any Omanisation targets that client companies using the workforce agency’s services must meet.
The manpower and recruitment sector has specific Omanisation targets set by the Ministry of Labour. These targets are periodically revised. Failure to maintain the required Omanisation ratio affects the company’s ability to obtain new work permits for foreign employees and can result in the manpower licence renewal being blocked by the Ministry of Labour. Companies should monitor their Omanisation status through the Ministry of Labour portal and adjust hiring plans accordingly. For the full employment law framework that governs manpower companies and their deployed workers, see our guide to Oman employment law.
Domestic Worker and Family Manpower Recruitment Licence in Oman
A distinct subcategory of the manpower licence covers agencies that recruit domestic workers for Omani and expatriate households. This includes housemaids, nannies, cooks, drivers, and other household employment categories. The Ministry of Labour also issues the domestic worker recruitment licence, but it involves different documentation and a separate approval pathway from the commercial manpower supply licence.
Agencies applying for a domestic worker recruitment licence must demonstrate established sourcing relationships with sending countries that have bilateral agreements with Oman for domestic worker recruitment. Countries from which domestic workers are most commonly recruited to Oman include Indonesia, the Philippines, India, Bangladesh, and Ethiopia. The Ministry of Labour’s oversight of the domestic worker recruitment sector is stricter than for commercial manpower supply, with mandatory welfare standards, orientation requirements, and contract conditions applying to each placement.
Can Foreigners Own a Manpower Supply Company in Oman?
Foreign investors can own a manpower supply or recruitment agency in Oman under the Foreign Capital Investment Law (Royal Decree 50/2019), which allows 100% foreign ownership in most commercial activities, including manpower supply and labour recruitment. However, the Ministry of Labour licence approval process involves an assessment of the company’s management, the owner’s background in the recruitment or staffing sector, and the company’s operational readiness. Foreign owners with a track record in manpower or human resources businesses in their home country are better positioned for approval than applicants with no industry background.
For foreign-owned manpower companies, the standard LLC minimum capital benchmark of OMR 150,000 applies. The company formation process is handled through MOCIIP and the Invest Easy portal. For the full company formation process in Oman, including LLC setup steps and foreign ownership rules, see our dedicated company formation guide.
Conclusion
Getting a manpower license in Oman requires completing two parallel registrations: MOCIIP company formation with the correct activity code, and Ministry of Labour manpower licence approval. The bank guarantee is the single most common point of failure for new applicants. It must be arranged with an Oman-licensed bank before the Ministry of Labour application is submitted. Total first-year costs excluding the bank guarantee run from OMR 3,100 to OMR 12,600. Domestic worker recruitment agencies and commercial manpower supply companies follow separate approval pathways with different documentation requirements.
MakeMyCompany is a business setup consultancy in Muscat, Oman, providing company formation, manpower licence application management, Ministry of Labour registration, labour file setup, and PRO services for manpower supply and recruitment agencies setting up in Oman. Contact our team through omanbusinesssetup.com for expert guidance on manpower business setup in Oman.
Frequently Asked Questions
What is the difference between a manpower supply license and a manpower consultancy license in Oman?
A manpower supply licence allows a company to directly employ workers and deploy them to client businesses as the employer of record. A manpower consultancy licence allows an agency to recruit workers on behalf of employers who directly sponsor the workers. The bank guarantee, Omanisation obligations, and Ministry of Labour approval process differ between the two categories.
How much does a manpower license cost in Oman?
Ministry of Labour manpower licence fees run from OMR 300 to OMR 800 annually. Combined with MOCIIP commercial registration, OCCI membership, office tenancy, and municipality fees, total first-year setup costs excluding the bank guarantee run from OMR 3,100 to OMR 12,600. The bank guarantee is a separate capital requirement of OMR 5,000 to OMR 30,000, depending on the licence category.
What bank guarantee is required for a manpower license in Oman?
The Ministry of Labour requires a bank guarantee issued by an Oman-licensed bank as a condition of manpower licence issuance. The amount varies by licence category: manpower supply companies typically require OMR 15,000 to OMR 30,000, manpower consultancy agencies OMR 5,000 to OMR 15,000, and domestic worker agencies OMR 5,000 to OMR 10,000. The guarantee is not a fee and is returned when the licence is cancelled with obligations cleared.
Which authority issues the manpower license in Oman?
The manpower licence is issued by the Ministry of Labour (MoL) in Oman. The Ministry of Labour is the authority responsible for approving manpower supply and recruitment agency licences, setting Omanisation quotas, and regulating employment practices across all manpower businesses in Oman. The company must also be registered with MOCIIP, but the manpower-specific licence is a separate Ministry of Labour approval.
Can a foreigner start a manpower supply company in Oman?
Yes. Foreign investors can own 100% of a manpower supply or recruitment agency in Oman under Royal Decree 50/2019. The standard LLC minimum capital benchmark of OMR 150,000 applies to foreign-owned companies. Ministry of Labour licence approval involves an assessment of the applicant’s background in the staffing or recruitment sector, which strengthens the application for foreign owners with industry experience.
How long does it take to get a manpower license in Oman?
The full timeline from company registration to manpower licence issuance typically runs from 45 to 90 working days. The main variable is the bank guarantee processing time (two to four weeks with the bank), the Ministry of Labour review period, and whether a site inspection of the office is required. Applications with complete documentation and a pre-arranged bank guarantee clear faster than those where the bank guarantee is arranged after the MoL application is submitted.
About the Author
Shuja Ahmad is a Business Setup Consultant at MakeMyCompany, a business setup consultancy based in Muttrah, Muscat, Oman. He specialises in manpower company formation, Ministry of Labour licence applications, bank guarantee coordination, labour file registration, and PRO services for manpower supply agencies and recruitment companies establishing operations in Oman. Shuja manages end-to-end registration for manpower businesses from MOCIIP commercial registration through Ministry of Labour licence approval and Social Protection Fund enrolment. For expert guidance on business setup in Oman, visit MakeMyCompany at omanbusinesssetup.com.
