How to start LLC company in Oman

Written by: Shuja Ahmad

Oman Company Formation Specialist

Last Updated: February 2026

Based on the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) current regulations

The Limited Liability Company (LLC) is the most popular business structure in Oman, combining liability protection with operational flexibility. This guide explains how to register an LLC in Oman, covering requirements, costs, timelines, and procedures.

Need expert help with paperwork, MOCIIP filing, and licensing? Visit our LLC company formation service in Oman and share your activity to get a fast quotation.

Quick Facts: LLC Company in Oman

Who Can Open:

• Omani citizens
• GCC nationals
• Foreign investors (100% ownership in most sectors)

Minimum Requirements:

• 2-50 shareholders
• Physical office with a lease agreement
• Capital deposit (varies by activity – many activities have no fixed minimum)
• MOCIIP Registration

Timeline:

• Name reservation: 1-2 days
• Document preparation: 3-7 days
• MOCIIP processing: 5-10 days
• Total: 7-15 business days typically

Setup Costs (Essential Only):

• Government fees: OMR 650-1,200
• Capital deposit: Activity-dependent (bank may request indicative capital)
• Office lease: OMR 1,500-6,000 annual
• Legal services: OMR 500-2,000

100% Foreign Ownership Sectors:

• Manufacturing
• Technology and IT
• Professional services
• Logistics
• Tourism
• Renewable energy

LLC Company Formation in Oman: Requirements

Shareholders

Number required: Minimum 2, maximum 50

Who can be shareholders:

• Individuals (Omani or foreign)
• Corporate entities
• Mix of both

For sole entrepreneurs, common structures include partnering with family members or business associates, with one party holding majority ownership.

Company Registration in Oman: Capital Requirements

Important Update (2024-2026): Oman has removed fixed minimum capital requirements for many business activities.

Current approach:

• No mandatory minimum for most service activities
• Banks may request indicative capital for account opening
• Sector-specific requirements still apply for regulated industries

Capital guidelines by sector:

• Service businesses: Often no fixed minimum (bank may request OMR 3,000-10,000 for an account)
• Trading companies: OMR 10,000-30,000, typical range
• Contracting: OMR 30,000-50,000 depending on classification
• Regulated sectors (finance, healthcare, education): Higher capital proving financial capability

Always verify current capital requirements with MOCIIP for your specific activity.

Foreign Ownership Rules

Recent reforms under Royal Decree 50/2019 allow 100% foreign ownership in most sectors.

100% foreign ownership permitted:

• Manufacturing and production
• Technology, IT services, software development
• Professional services (consulting, accounting, engineering)
• Logistics and warehousing
• Tourism and hospitality
• Renewable energy and sustainability

Activities requiring Omani partnership:

• Some retail activities
• Certain import/export operations
• Sector-specific restrictions apply

Verify current rules for your specific activity before proceeding.

Physical Office Requirement

Mandatory: Valid office lease or property ownership

Not accepted: Virtual offices or residential addresses for LLC registration

Office options:

• Traditional commercial office
• Co-working space (accepted for many activities)
• Free zone office (Sohar, Salalah, Duqm)

The office must comply with municipal zoning for commercial use.

How to Register an LLC Company in Oman

Step 1: Choose and Reserve Company Name

Requirements:

• Unique (not similar to existing companies)
• Reflects business activities
• No religious or governmental references
• Available for trademark protection

Process: Submit name reservation to MOCIIP

Cost: OMR 50-100

Validity: Name reserved for 90 days

Timeline: 1-2 days approval

Step 2: Draft Company Documents

Required documents:

Memorandum of Association (MoA):

• Company purpose and activities
• Shareholder details
• Capital structure

Articles of Association (AoA):

• Governance structure
• Management procedures
• Shareholder rights and obligations

Professional requirement: Legal drafting ensures Omani commercial law compliance

Timeline: 3-7 days for professional preparation

Step 3: Open a Bank Account and Deposit Capital

Process:

1. Select a licensed Omani bank
2. Submit name reservation and shareholder IDs
3. Open a corporate account
4. Deposit required capital (if applicable for your activity)
5. Obtain a capital deposit certificate

Timeline: 2-3 days

Cost: OMR 100-300 account opening fees

Step 4: Submit MOCIIP Registration Application

Required documents:

• Completed registration forms
• Reserved name confirmation
• Memorandum and Articles of Association
• Shareholder passports (foreign) or civil IDs (Omani)
• Capital deposit certificate (if applicable)
• Office lease agreement
• Partnership agreement

Submission: MOCIIP service centers or authorized typing offices

Fees: OMR 300-500 (varies by capital and activities)

Timeline: 5-10 business days processing

Step 5: Obtain Municipal License

Requirements:

• MOCIIP initial approval
• Office lease agreement
• Civil Defense clearance (if required)

Municipal inspection: Verifies commercial premises compliance

Fees: OMR 200-500 annual

Timeline: 3-5 days

Step 6: Register for Tax

Oman Tax Authority registration:

• Corporate tax obligations
• Tax Identification Number (TIN)

Public Authority for Social Insurance (PASI):

• Required before hiring employees
• Social security compliance

Timeline: 2-3 days

Fees: OMR 20-50

Step 7: Obtain Sector-Specific Licenses (if applicable)

Common requirements:

• Food businesses: Ministry of Health approval
• Healthcare: Ministry of Health medical establishment license
• Education: Ministry of Education approval
• Tourism: Ministry of Heritage and Tourism licensing

Timeline: Varies (1-6 weeks depending on sector)

Step 8: Receive Commercial Registration Certificate

MOCIIP issues:

• Certificate of Incorporation
• Commercial Registration certificate
• Company registration number

Includes:

• Registered office address
• Authorized business activities
• Validity period

Step 9: Open Corporate Bank Account (Final)

With Commercial Registration, open a full corporate account for:

• Business transactions
• Salary payments
• Trade finance
• Foreign exchange

Timeline: 1-3 days

Step 10: Process Work Visas (if hiring)

For foreign shareholders and employees:

• Commercial Registration required
• Employment contracts
• Medical examinations
• Visa fees

Processing: Royal Oman Police and Ministry of Labour

Timeline: 4-8 weeks

Company Setup in Oman: Required Documents

For Shareholders:

• Valid passport (foreign) or National ID (Omani)
• Passport photos (official specifications)
• Proof of address

Company Documents:

• Memorandum of Association
• Articles of Association
• Partnership agreement
• Office lease or property ownership

Financial Documents:

• Capital deposit certificate (if applicable)
• Bank reference letters

For Foreign Investors:

• Attested documents via the embassy
• Certified Arabic translations
• Good standing certificates (if applicable)

For Regulated Sectors:

• Educational certificates
• Professional qualifications
• Experience certificates

LLC Company Setup in Oman: Cost Breakdown

Government and Registration Fees

Item	Cost (OMR)
Name reservation	50-100
MOCIIP registration	300-500
Municipal license	200-500
Tax registration	20-50
Chamber of Commerce	100-200
Total government fees	670-1,350

Capital Requirements

Activity-dependent: Many activities have no fixed minimum. Banks may request indicative capital.

Typical ranges:

• Service businesses: OMR 0-10,000
• Trading: OMR 10,000-30,000
• Contracting: OMR 30,000-50,000
• Regulated sectors: Higher requirements

Legal and Professional Services

• Document drafting: OMR 500-1,500
• Legal consultation: OMR 500-2,000
• Document attestation: OMR 300-800
• Translation services: OMR 200-500

Office Lease

• Annual rent: OMR 1,500-6,000 (varies by location)
• Deposit: Typically 3-6 months’ rent

Additional Setup Costs

• Bank account opening: OMR 100-300
• Visa processing (per person): OMR 500-1,500
• Initial insurance: OMR 500-2,000

Total Estimated Setup Cost

Minimum (service business, no capital requirement): OMR 3,500-7,000

Standard (trading/consulting with modest capital): OMR 15,000-35,000

Costs vary significantly based on:

• Business activity
• Capital requirements
• Office location
• Number of visas needed

Benefits of an LLC Company in Oman

Limited Liability Protection

Personal assets (homes, savings, vehicles) remain protected from business creditors. Risk is limited to capital contribution.

Professional Credibility

LLCs gain stronger credibility with:

• Banks (easier loans and credit)
• Suppliers (better payment terms)
• Clients (preferred for contracts)
• Government entities

Access to Government Contracts

Many government tenders require an LLC or larger corporate structure. Sole proprietorships cannot bid on most government projects.

Employee Sponsorship

Sponsor work visas and residence permits for:

• Foreign shareholders
• Directors
• Employees (local and international)

Business Continuity

LLC continues to exist despite shareholder changes through:

• Death or retirement
• Share transfers
• New investor additions

A separate legal personality provides stability.

International Partnerships

Foreign companies prefer LLCs for:

• Joint ventures
• Franchise agreements
• Distribution partnerships
• Technology collaborations

LLC vs Other Business Structures

LLC vs Sole Proprietorship

LLC advantages:

• Limited liability protection
• Multiple shareholders possible
• Greater credibility
• Access to government contracts
• Business continuity

Sole proprietorship advantages:

• Simpler setup
• Lower initial costs
• Full profit retention

LLC vs SPC (Single Person Company)

LLC advantages:

• Partnership capabilities
• Broader activity access
• Higher capital flexibility

SPC advantages:

• 100% individual ownership
• No partner coordination
• Simpler governance

LLC vs Branch Office

LLC advantages:

• Independent legal entity
• Full operational flexibility
• Can have local shareholders

Branch advantages:

• Parent company backing
• Easier for international companies
• Simplified structure

Common Challenges and Solutions

Finding Suitable Partners

Challenge: Foreign investors needing 2 shareholders

Solutions:

• Partner with family members
• Bring in trusted business associates
• Consider 100% foreign ownership sectors
• Explore the SPC option if sole ownership is desired

Capital Requirements Confusion

Challenge: Outdated information about fixed minimums

Solution: Verify current requirements with MOCIIP for your specific activity. Many service businesses no longer have fixed capital requirements.

Office Space Costs

Challenge: High rental costs in prime locations

Solutions:

• Consider co-working spaces
• Look at emerging business areas
• Explore free zones
• Share office spaces initially

Visa Processing Delays

Challenge: Work visa timelines affecting operations

Solutions:

• Start visa applications immediately after Commercial Registration
• Ensure all documentation is complete upfront
• Consider hiring PRO services for expedited processing

Frequently Asked Questions

Can a foreigner open an LLC in Oman?

Yes. Many sectors now allow 100% foreign ownership under recent FDI reforms. Check current regulations for your specific business activity.

What is the minimum capital to open an LLC in Oman?

No fixed minimum for many activities as of 2024-2026. Banks may request indicative capital of OMR 3,000-10,000 (typical). Regulated sectors have specific requirements. Verify with MOCIIP for your activity.

How long does it take to register an LLC in Oman?

Typically, 7-15 business days from complete document submission to Commercial Registration issuance. Complex activities requiring sector approvals may take 4-8 weeks.

Is a physical office necessary to register an LLC in Oman?

Yes. A valid office lease agreement is mandatory. Virtual offices and residential addresses are not accepted. Co-working spaces are accepted for many activities.

Can I sponsor employees under my LLC?

Yes. After Commercial Registration and Ministry of Labour registration, you can sponsor work visas for employees subject to labor quotas.

Do I need to file tax returns for my LLC in Oman?

Yes. All LLCs must file annual corporate tax returns with the Oman Tax Authority. The corporate tax rate is 15% on taxable income (a 3% SME rate is available for qualifying businesses).

Do I need an Omani partner to start an LLC?

Not in many sectors. Recent reforms allow 100% foreign ownership in manufacturing, technology, professional services, logistics, tourism, and renewable energy. Some activities still require Omani partnership.

Is an audit mandatory for LLCs in Oman?

Required if annual revenue exceeds regulatory thresholds or if business activity is in a regulated sector. Small LLCs below thresholds may not require annual audits.

How do I renew my company license in Oman?

Annual renewal through MOCIIP and the local municipality. Submit updated documents and pay renewal fees. Process typically takes 3-7 days.

What are the benefits of an LLC over other business types in Oman?

Limited liability protection, multiple shareholder capability, professional credibility, access to government contracts, employee sponsorship rights, business continuity, and easier access to banking services.

Conclusion

Establishing an LLC in Oman involves a systematic progression through MOCIIP registration, municipal licensing, and tax registration. With recent foreign ownership reforms and streamlined digital processes, LLC formation has become more accessible for both local and international entrepreneurs.

Key success factors include understanding current capital requirements (many activities no longer have fixed minimums), selecting appropriate business activities, securing appropriate office space, and meeting all regulatory requirements efficiently.

The LLC structure provides liability protection, professional credibility, and operational flexibility suitable for businesses across all sectors. Whether you’re a foreign investor entering the Omani market or a local entrepreneur, proper planning and compliance are essential for a successful company establishment.

Legal Disclaimer:

This guide is informational based on February 2026 MOCIIP regulations. Requirements change periodically. Always verify current regulations through official MOCIIP channels or licensed business consultants before proceeding with registration.

About the Author:

Shuja Ahmad specializes in Oman company formation, helping entrepreneurs navigate MOCIIP registration procedures and regulatory compliance.

For current MOCIIP requirements and official procedures, visit the Ministry of Commerce, Industry, and Investment Promotion website or consult licensed business setup professionals.