Foreign company branch
Branch office in Oman: registering a branch of a foreign company
A branch lets an overseas company operate in Oman under its own name without forming a new company. It is usually tied to a specific contract or project, so it is not the right choice for everyone.
Last reviewed 13 October 2026Free first consultation · reply within one business day
What is a branch office in Oman?
A branch is an extension of its foreign parent company. It is registered in the Commercial Register, but it is not a separate legal entity: the parent company is fully liable for the branch's obligations. The branch uses the parent's name and carries out activities on its behalf.
In Oman, foreign branches are typically registered to perform a specific contract, commonly a contract with a government body or a government-owned company, or a project the authorities have approved. The branch's registration generally runs for the duration of that contract. Companies planning open-ended trading in Oman usually form a 100% foreign-owned LLC or SPC subsidiary instead.
Branch vs subsidiary
| Branch | Subsidiary (LLC/SPC) | |
|---|---|---|
| Legal personality | None; part of the parent | Separate company |
| Liability | Parent fully liable | Limited to the subsidiary's capital |
| Scope | Usually tied to a contract or approved project | Any permitted activity, open-ended |
| Name | Parent's name, plus "Oman Branch" | Its own trade name |
| Tax | Taxed in Oman on profits from the Oman branch | Taxed in Oman on its own profits |
| Closing | Ends with the contract or on deregistration | Liquidation process |
Documents from the parent company
- Certificate of incorporation or commercial registration
- Memorandum and articles of association
- Latest audited financial statements
- Board resolution approving the Oman branch and appointing the branch manager
- Power of attorney for the branch manager and for us as filing agent
- A copy of the contract or award letter that the branch will perform, where applicable
- Passport copy of the branch manager
Parent company documents must be apostilled or legalised and translated into Arabic. See the documents checklist.
Registration steps
- Confirm that a branch is permitted for your contract and activity.
- Prepare, attest and translate the parent company documents.
- File the branch registration with MOCIIP and obtain the Commercial Registration.
- Complete Chamber of Commerce membership, office lease registration and the municipality licence.
- Register with the Oman Tax Authority and the Ministry of Labour.
- Open the branch bank account and apply for employee visas.
Tax and compliance
Branches pay 15% corporate income tax on profits attributable to their Oman operations. They must keep accounts, file annual returns supported by audited financial statements, and register for VAT where required. Payments to the parent company for services or royalties may be subject to withholding tax. We can coordinate this through our corporate tax service.
Benefits of a branch
No new legal entity
The branch is part of the parent company, so contracts, references and financial standing stay with the parent.
Fast route for project work
For a defined contract, a branch can be quicker to justify than a new subsidiary.
Tax only on Omani profits
The branch is taxed as a permanent establishment on profits attributable to its Omani activities.
Who a branch suits
- Foreign contractors and consultants delivering a specific contract in Oman
- Companies working on government or major project awards
- Groups that want the Omani operation on the parent's balance sheet
For an open-ended presence selling to many clients, an LLC or SPC is usually better.
Typical timeline
| Step | Typical time |
|---|---|
| Parent documents attested and translated | 2–4 weeks |
| Branch registration | 1–3 weeks |
| Premises, licence, tax and bank | 2–6 weeks |
| Visas for project staff | 2–6 weeks |
Common mistakes
- Using a branch for an open-ended business where a subsidiary would carry less risk.
- Late attestation of parent documents, the most common delay.
- Not planning how the branch will be closed when the contract ends.
Why MakeMyCompany
We prepare the parent-document pack, register the branch, and handle tax registration, visas and PRO services for the life of the project. See top reasons to start a branch office.
Frequently asked questions
Can any foreign company open a branch in Oman?
Not automatically. Branches are generally registered to carry out a specific contract or an approved project. For general trading or services, a wholly owned LLC or SPC is the usual route.
Is the parent company liable for the branch's debts?
Yes. A branch has no separate legal personality, so the parent company is responsible for all its liabilities.
Can a branch sponsor visas?
Yes. A registered and licensed branch can apply for work permits and employment visas for staff working on its Oman operations.
What is the difference between a branch and a representative office?
A branch can carry out commercial work and earn revenue in Oman. A representative office is limited to marketing, promotion and liaison, and cannot trade.
Official sources
Requirements and fees change, so confirm current details with the authority concerned. This page is general guidance, not legal advice.
- Ministry of Commerce, Industry and Investment Promotion (MOCIIP) – licensing, commercial registration policy and the list of restricted activities.
- Invest Easy – the government portal for registering companies and licences.
- Oman Tax Authority – corporate tax, VAT and tax card registration.
Next steps
Related services and guides
- 01Representative OfficeOpen a representative office in Oman to promote your foreign company's products and services. What it can and can't do, requirements, documents and steps.
- 02LLC RegistrationLLC company formation in Oman with 100% foreign ownership: LLC meaning, requirements, step-by-step setup, documents, cost and timeline, handled by our Muscat team.
- 03Documents ChecklistChecklist of documents needed to register a company in Oman for individual and corporate shareholders, plus attestation, translation and post-registration documents.
- 04SPC RegistrationSPC company in Oman explained: SPC meaning, who can register a single person company, 100% foreign ownership, documents, cost and timeline.
- 05Joint Stock CompanyHow to form a joint stock company in Oman: SAOC vs SAOG, minimum capital, shareholders, governance, CMA rules and when the structure makes sense.
- 06Sole ProprietorshipRegister a sole proprietorship (sole proprietor company) in Oman: eligibility for Omani and GCC nationals, liability, steps and alternatives for foreign investors.
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