Starting a business in Oman has always been promising, but in 2025, the game is changing. The government has introduced new policies to make things easier, faster, and more flexible for local and international entrepreneurs. These changes are part of Oman’s push to boost private sector growth and attract foreign direct investment.
Let’s break down the new rules for business startups in Oman in 2025, in simple terms, with everything explained under clear headings.
Why Oman Updated Its Business Startup Laws
Oman is focusing on economic diversification. With a vision to grow beyond oil, it’s opening doors to new businesses. The government wants to encourage foreign investors, empower Omani entrepreneurs, and support tech startups, sustainable businesses, and small enterprises. These new rules aim to simplify processes, reduce paperwork, and help startups grow faster.
New Business Structures Introduced in 2025
Oman introduced flexible business structures in 2025, allowing entrepreneurs to launch single-owner companies with ease. New models support tech startups, freelancers, and SMEs, offering simplified licensing, lower barriers, and faster approval. These changes promote innovation while attracting both local and international investors into high-growth sectors.
Simplified Business Models
Oman has launched a new business category for micro and solo entrepreneurs. It allows individuals to register with low capital, fewer documents, and limited legal formalities. This model is especially helpful for freelancers, consultants, and service providers.
Full Foreign Ownership for Key Sectors
One of the biggest changes in 2025 is allowing 100% foreign ownership in several key industries like information technology, manufacturing, education, tourism, and healthcare. Previously, foreigners needed a local partner, but now, they can own and operate independently in approved sectors.
Streamlined Company Registration Process
The registration system is now almost entirely online. Through a unified digital platform, new entrepreneurs can:
- Register their trade name
- Upload company documents
- Pay fees online
- Get a license issued digitally
This online portal reduces delays and removes the need to visit multiple government offices.
Fast-Track Approvals for Tech and Innovation Startups
If your business is in tech, e-commerce, green energy, or research, you may be eligible for fast-track approvals. The process takes only a few days, and additional support is offered through startup incubators and government-backed accelerators.
Reduced Capital Requirements
The government has lowered the minimum capital needed to start a business, making entrepreneurship more accessible. Many activities now require as little as OMR 1,000. This encourages small business owners, freelancers, and innovators to enter the market confidently and operate without the burden of high financial entry barriers.
Low-Cost Entry for Small Businesses
For small startups, the minimum capital requirement has been reduced to make it easier to enter the market. Many business types can now be launched with as little as OMR 1,000 or less, depending on the activity.
Flexible Banking Rules for Startup Accounts
New policies allow business owners to open bank accounts with lower balances and less documentation, helping them operate quickly after licensing.
Visa and Residency Support for Business Owners
Entrepreneurs setting up in Oman can now apply for a special Investor Visa valid for up to 2 years. They also get access to:
- Residency permits for family members
- Employee visas for a small team
- Easier renewal and extension processes
This policy makes Oman attractive for business owners planning to live and work locally.
New Tax Benefits and Incentives
Startups in key sectors enjoy reduced tax rates, with some qualifying for a 0% corporate tax for the first two years. Incentives include customs exemptions, VAT relief, and financial support for R&D and innovation. These benefits are designed to ease startup burdens and support long-term profitability.
Tax Discounts for New Startups
In 2025, Oman introduced reduced corporate tax rates for newly registered startups, especially those in strategic sectors. Eligible companies may enjoy:
- 0% tax for the first 2 years
- Reduced tax rates (as low as 5%) for tech, education, and renewable businesses
Import Duty Exemptions
Businesses importing machinery, raw materials, or technology may get customs duty exemptions, especially if they’re part of government-supported projects or operate in free zones.
Support for Local Hiring and Omaniization
The government continues to support Omaniization, but with more flexible rules for startups:
- Small businesses with under 5 employees have relaxed hiring requirements
- Tech startups can request temporary exemptions from local hiring quotas
- Training programs help develop local talent to join startups
This approach helps balance job creation for Omanis and growth for entrepreneurs.
Updated Legal Requirements for Startup Compliance
Startups in 2025 must follow clearer rules around:
- Anti-money laundering (AML) practices
- Transparent bookkeeping and basic auditing for some sectors
- Compliance with health and safety laws for physical offices or stores
These rules improve trust and transparency in the business environment.
Special Focus on Digital and Green Startups
Oman now prioritizes digital and eco-friendly businesses with special licenses, fast approvals, and government-backed support. Startups in e-commerce, software, clean energy, and sustainable solutions receive grants, co-working access, and tax breaks. This aligns with Oman’s digital transformation goals and environmental responsibility under Vision 2040.
Green Business Benefits
If your company focuses on clean energy, sustainability, waste reduction, or eco-friendly products, you may qualify for:
- Green business grants
- Access to eco-zones
- Lower utility costs
Oman is investing heavily in green innovation, and these rules are part of the drive.
Digital and E-Commerce Companies
Startups in e-commerce, digital marketing, web services, or app development can now register under a special category with fewer formalities and lower fees.
Startup Support Ecosystem in Oman
In 2025, Oman has improved its startup ecosystem by introducing:
- New startup incubators and co-working hubs in Muscat, Sohar, and Salalah
- Free mentoring programs for new entrepreneurs
- Government-backed business coaching and investment readiness workshops
These programs aim to reduce startup failure rates and encourage innovation.
Funding Opportunities in 2025
In 2025, Oman introduced public grants, startup funds, and angel investor programs to support early-stage businesses. Entrepreneurs can access seed funding, low-interest loans, and investment networks. Pitch events and accelerator programs are also helping founders grow faster and secure financial backing with ease and confidence.
Government Funds and Grants
The Ministry of Commerce has launched a Startup Support Fund that provides small grants to early-stage businesses. It also connects founders with:
- Local investors
- Angel networks
- Microloan providers
Pitch Events and Investment Roadshows
Throughout 2025, Oman is organizing pitch days, where startups can present ideas and receive funding or incubation support. This gives founders a real chance to grow fast.
Stronger Intellectual Property Rights
Protecting your ideas is easier in 2025:
- Faster trademark registration
- Online copyright and patent filing
- Legal support for intellectual property disputes
This is especially important for creative, digital, and tech startups.
Role of Women and Youth in New Policies
Oman is actively supporting women entrepreneurs and youth-led startups through:
- Women-focused business grants
- Training programs for young founders
- Equal access to funding and incubation
These inclusive steps ensure that the new economy includes everyone.
Opportunities in Free Zones and Industrial Parks
If you’re planning to operate in Salalah Free Zone, Sohar Port, or Duqm Special Economic Zone, you’ll benefit from:
- Tax holidays up to 10 years
- 100% foreign ownership
- Zero customs duties on imports and exports
These areas are ideal for logistics, manufacturing, trade, and shipping startups.
Compliance With ESG and Sustainability Standards
Startups must now meet basic ESG standards to operate responsibly. Businesses are encouraged to report environmental impact, adopt ethical practices, and contribute to social well-being. Oman’s updated laws promote sustainable business models, offering incentives and support for companies that align with global environmental and governance benchmarks.
Environment, Social & Governance (ESG)
Oman’s new startup rules now consider ESG criteria:
- Companies must show social and environmental responsibility
- Reporting tools are being introduced for ESG compliance
- Startups can receive rewards for sustainability efforts
This puts Oman on the map as a forward-thinking, ethical business hub.
Conclusion
Oman is not just changing rules—it’s changing mindsets. The focus now is on ease of doing business, startup innovation, and inclusive growth. Whether you’re a local entrepreneur or a foreign investor, these new rules open the door for exciting opportunities.
Working with Business Setup Consultants in Oman will help you save time, reduce mistakes, and stay compliant with every legal step. From paperwork to permits, they make the journey smoother.
FAQs
Can foreigners start a 100% owned business in Oman now?
Yes, in many sectors, you can own the business completely without needing a local partner.
What is the minimum capital to start a business in Oman in 2025?
Some businesses can now start with as little as OMR 1,000 or even lower depending on their activity.
Is the registration process fully online?
Yes, the Ministry of Commerce has launched a digital portal for registration, fee payment, and licensing.
What are the new tax incentives?
Startups in tech, education, and green sectors may pay 0% tax for the first two years.
Are there new visas for business owners?
Yes, a new Investor Visa allows entrepreneurs to live and work in Oman for up to two years, with family.
Do I need to hire Omanis for a small startup?
There’s flexibility for small businesses. The government has relaxed some rules for new startups.
Can I apply for funding as a new startup?
Yes, Oman now has government-backed grants and startup funds for eligible new businesses.
What kind of support is available for women entrepreneurs?
Women-led businesses get access to special grants, training, and mentorship programs.
Is there IP protection in Oman now?
Yes, Oman offers faster trademark and patent registration with legal support for IP disputes.
How can business setup consultants help?
They guide you through the process, file paperwork, ensure legal compliance, and help you benefit from the new incentives.
