Company Registration in Oman
Interested in registering a company in Oman? Let us assist you in launching your business successfully.
Our business setup service in Oman includes:
- Company Registration
- Opening a Corporate Bank Account
- Drafting and Filing of Application
- Securing Required Licenses
- Tax Registration
- Company Compliances
Oman Company Registration with Bank Account
Are you looking to expand or start a business in the Gulf region? Oman could be the most suitable destination to offer the opportunity you have been looking for. Whether you are a foreign investor or an entrepreneur, Oman offers a stable environment to establish and grow your company with ease. From favourable taxation to 100 per cent foreign ownership options in major sectors, Oman is positioning itself as a global business hub. The country's focus on economic diversification and innovation is helping businesses of all sizes scale.
Company registration in Oman is a streamlined process, when done right. From choosing the right structure and fulfilling legal requirements to securing commercial license – it is crucial to understand all the steps of company registration. Continue reading to learn more about the requirements, step-by-step procedure, and explore how our services can help you get started faster.
Is Company Registration in Oman open to Foreigners?
Company registration in Oman is fully open to foreigners, offering a clear, business-friendly pathway to establish and operate across various sectors. According to the Foreign Ministry of Oman, the country’s foreign direct investment has increased by 17.6% over the past five years. It has reached a total of OMR 26.7 billion by the end of the third quarter of 2024. This rise is mainly due to the Sultanate’s advanced infrastructure, economic reforms, and pro-business environment.
Here are some of the major points that a foreign entrepreneur or investor should know:
- Foreign investors can choose from several business entity types for company formation in Oman
- A 100 per cent foreign ownership is allowed for all the companies, unless the business falls under the Ministry of Commerce and Industry’s blacklist
- Registration fees and capital requirements are comparatively higher for fully foreign-owned companies
- If you are planning to set up a wholly foreign-owned LLC or limited liability company in Oman, you are required to have a minimum capital.
Company Registration in Oman: How Long Does It Really Take?
One of the first questions that business owners have is: How long does it take for registering a company in Oman? Whether you are a local investor or a foreign entrepreneur, understanding the timeline for business registration and setup in Oman is essential for effective planning.
The process of company registration in Oman typically takes between four to six weeks, subject to completion of necessary submissions and approvals. Refer to the table below to get a realistic idea of the time required to set up a business in Oman:
| Steps | Duration |
|---|---|
| Initial planning | One day |
| Trade name registration | One to two days |
| Preparation of documents | Three to four days |
| Company incorporation certificate | One to two weeks |
| Additional approvals | One week |
| Final Review and Issuance of License | Two to three weeks |
To ensure a smooth and timely company formation process, you can partner with the Gryffin Capitalist. Our team of experts offer cost-effective solutions designed to streamline the process and help you save both time and effort.
Investor Types Best Suited for Company Setup in Oman
Oman has become a preferred choice for foreign investors and entrepreneurs looking to explore the Gulf region. In line with ‘Oman Vision 2040’ initiative, which aims to create a diversified economy, the government has also streamlined several procedures to encourage investment and entrepreneurship. With growing investor incentives, now is the perfect time to consider company registration in Oman.
Different types of investors can find Oman well-suited for their business endeavors. Here are the key categories:
Individuals or corporations from a foreign country seeking to start a business in Oman. The ability to fully own businesses in many sectors makes company registration in Oman especially appealing for foreign capital.
Entrepreneurs or corporations in Oman who wish to expand or start a business. Omani nationals can also benefit from government support and a deep understanding of the local market and regulatory framework.
Small medium enterprises or SMEs in Oman can benefit from the country’s growing startup ecosystem. Low operational cost, supported by incubator programmes and government or private funding, allow small-sized businesses to scale and grow. Company registration in Oman for startups is relatively straightforward, with simplified procedures and support services.
Investors from GCC countries, including the UAE, Saudi Arabia, and Qatar, are treated similarly to Omani citizens for most investment purposes. Strong regional ties and free movement of goods/services is an added advantage for this category.
Businesses or individuals who want to operate in a duty-free and business-friendly environment. Free zones in Oman, such as Sohar, Duqm, and Salalah, offer advanced infrastructure and regulatory ease for businesses to thrive. Company registration in Oman’s free zones allows investors to benefit from tax incentives and full ownership rights.
Choosing the right Company Structure in Oman
There are the following forms of company structure available for company registration in Oman:
- A Limited Liability Company (LLC) - Oman LLC company formation offers liability protection, regulated capital access, and ease of share transfer, with limited liability for shareholders.
- A Partnership Company - If you want to form a partnership company in Oman, you can have one or more partners with joint liability for company debts.
- Joint Venture - A joint venture business in Oman does not require minimum capital. The applicant seeking company registration in Oman may use the joint venture structure for a specified period of company operation.
- Joint Stock Business - Businesses formed with the bare minimum funding. The general public may purchase shares of Joint Stock Companies.
- Holding Company - A Holding Company would exercise some significant control over its sister companies or subsidiaries. There would be more than 51% control over the subsidiary companies.
- Branch Office - To expand to the MENA region, Consider opening a branch office in Oman. You'll need a contract with an Omani government entity and prepare for a multi-step approval process.
- Sole proprietorship - Starting a sole proprietorship company (SPC) in Oman is one of the best options for investors to consider when investing in the country.
- Representative Office - To open a representative office in Oman, understand it's an extension of the parent company, similar to a branch office. It is restricted from profit-making activities and limited to tasks promoting the parent company's marketing goals.
- Oman Freezone Company - Oman offers a range of free zones to attract foreign investment and facilitate business operations. Oman Freezones provide numerous advantages for companies, including 100% foreign ownership, tax exemptions, and no customs duties on imports and exports. You can set up your company in the following freezone : Al Mazunah Free Zone, Sohar Free Zone, Salalah Free Zone, Duqm Special Economic Zone (SEZ)
Compliance Requirements for Business Setup in Oman
Starting a new business in Oman requires understanding and meeting various legal and regulatory obligations. Whether you are setting up a new entity or expanding an existing one, it’s essential to stay compliant with local laws to avoid penalties and ensure smooth operations.
Below is a comprehensive overview of the compliance requirements for company registration in Oman.
Corporate Tax Registration
It is mandatory for all the companies in Oman to register with the Ministry of Finance to file their corporate taxes. Businesses are subject to a 15% corporate income tax, which applies to most entities. Timely registration and accurate filing is crucial to maintain tax compliance in Oman.
Small Business Tax Benefits
SMEs in Oman can also benefit from a reduced tax rate of 3 per cent. You are eligible to avail this benefit if your business has:
- An annual gross income below OMR 100,000,
or
- An authorised share capital under OMR 50,000
LLC Compliance Obligations
For an LLC company in Oman, it is mandatory to notify the Ministry of Commerce and Investment about any structural or ownership changes. Some of these may include changes in business address, shareholding, or company directors.
Annual General Meeting (AGM)
All the companies in Oman are required to hold an AGM once every year. This meeting typically involves presenting audited financial statements, reviewing company performance, and making key business decisions, including the appointment or reappointment of directors.
Tax Exemptions in Oman
Foreign investors are often drawn to company registration in Oman due to generous tax exemption policies that support business growth and economic diversification. The country offers various tax exemptions and incentives to attract foreign investment. These benefits are available under specific conditions and for businesses operating in priority sectors. From corporate tax and VAT to exemptions, understanding the country’s tax policies is essential for compliance and effective financial planning. Below are the key highlights for tax exemptions in Oman:
- Customs duty exemptions
- Up to 5–10 years of corporate tax exemption for some specific sectors, such as manufacturing, tourism, among others
- A 3% reduced tax rate for SMEs in Oman
- Businesses in free zones in Oman can benefit from corporate tax holidays of up to 30 years
Benefits of Company Registration in Oman
Company registration in Oman offers numerous benefits. With its investor-friendly policies, growing non-oil economy, and access to regional and global markets, setting up a business in Oman offers numerous advantages. These factors also contribute to the growing range of business opportunities in Oman. Here is a list of top 10 benefits that make Oman a preferred choice for business formation:
- Strategic location - Provides easy access to GCC, Asia, and Africa markets
- Investment-friendly ecosystem - Pro-business policies, incentives, and various benefits to encourage businesspeople to invest in Oman
- Favorable tax regime - No tax on individual earnings and a 15 per cent corporate tax rate
- Infrastructure - Access to modern sea ports, roads, and airports
- Diverse Economy - The country is promoting growth in non-oil sectors such as tourism, logistics, and manufacturing
- Profit repatriation - Free transfer of capital and profit across different countries
- Full ownership - 100% foreign ownership allowed in many sectors
- Free Trade Zones - Several free zones in Oman offer benefits such as duty-free imports and tax holidays
- Skilled Workforce - The country offers a well-educated and skilled workforce
- Stable Political Environment - Predictable and secure environment for long-term investments
Process of Company Registration in Oman
The process of starting a company in Oman involves several legal and administrative steps. It is crucial for you to follow these steps carefully to ensure compliance with local regulations. This is where Gryffin Capitalist plays a key role, guiding you through each step of the process with ease. We offer end-to-end support for company registration in Oman, making your market entry fast and compliant.
Here is a step-by-step guide for the process of company registration in Oman:
The initial step is to select an appropriate legal structure for your company. Some of the available options are – joint stock company, LLC, branch office, among others.
Select a business name that adheres to the local naming guidelines. The name must reflect the nature of your business and should be unique.
Based on the business activity you have selected, determine the minimum capital requirement. For instance, a SME may qualify for a reduced capital requirement, while a larger company may need higher investment.
Some business activities may need a local sponsor. Gryffin Capitalist helps you identify whether your business requires local sponsorship and assists in establishing reliable sponsorship arrangements.
Based on the business activity and its associated industry, you may need additional approvals from relevant authorities before proceeding.
In compliance with the regulations set by local zoning authorities and municipality, you must lease a physical office or commercial space. This is a core requirement for company registration in Oman.
You need to prepare all the required documents for submission to relevant authorities. Documentation typically includes copies of shareholders’ and directors’ passports, proof of address, details of share capital, among others.
Firstly, submit your complete application to MoCIIP. Once approved, you will receive a Commercial Registration (CR) certificate, which will allow you to officially establish your company in Oman.
Once you have finalised your business activity, apply for a relevant business license.
Register your company with the Oman Tax Authority. As part of company registration in Oman, VAT registration is mandatory if your turnover exceeds OMR 38,500. A clear understanding of taxation in Oman, including VAT, corporate income tax, and exemptions, is crucial for managing financial obligations and avoiding penalties.
It is crucial to open a business bank account in Oman for managing your business transactions and capital deposits smoothly.
Our business setup consultant in Oman can assist you with the company registration process in Oman.
Compliance Requirements After Company Registration in Oman
After a successful company registration in Oman, you need to adhere to several compliance requirements to ensure smooth operations. Some of these requirements include:
Tax Registration and Filings
Companies must obtain a ‘Tax Card’ from the Oman Tax Authority within 30 days of incorporation. Corporate income tax is 15%, and businesses must file annual tax returns.
Renewing Commercial Registration
After completing company registration in Oman, businesses must ensure they renew their Commercial Registration annually. You can do it with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP). In case of failure to renew, it may result in penalties or suspension.
Value Added Tax in Oman
Businesses operating in Oman must also consider their obligations under the VAT or Value Added Tax (VAT) regime. If your annual taxable income exceeds OMR 38,500, VAT registration with the Oman Tax Authority is compulsory.
Accounting and Audit Requirements
Once you start operating your business, it is important to maintain proper financial records in line with the International Financial Reporting Standards (IFRS). Annual financial audits are mandatory for most of the Omani companies, especially LLCs and larger entities.
Social Security Registration
All the employees are required to register with the Public Authority for Social Insurance (PASI) for social security contributions.
Compliance with Labour Laws and Omanization
After company registration in Oman, businesses must ensure ongoing compliance with labor laws and Omanization requirements to operate legally. In Oman, the labour laws are overseen by the Ministry of Labor. The Omanization law has been designed to encourage foreign investment while promoting gradual workforce localisation through Omanisation policies. However, in the first year of business operations, new investors can benefit from the exemption from mandatory hiring of Omani nationals. This grace period allows companies to concentrate on setting up operations, recruiting skilled talent, and stabilising their workforce.
Meanwhile, this helps investors to avoid the immediate pressure of meeting the national employment quotas. From the second year onward, businesses are required to employ at least one Omani national. The specific Omanization targets can vary depending on the sector and size of the business. The initiative allows businesses to contribute towards achieving the country’s economic development goals while keeping the obligations realistic and doable.
Employment Visas and Work Permits in Oman
With streamlined visa processes and modern infrastructure, Oman remains an attractive destination for expats in Oman seeking stable and rewarding careers. Employment visas and Oman work permits can only be processed after successful company registration in Oman, as a registered entity is required to sponsor foreign employees legally. Oman offers a streamlined process for employing foreign talent, making it easier for businesses to access skills that may not be readily available in the local labour market. For companies doing business in Oman, obtaining work permits for expatriate employees is a key step when specialised expertise is required. This system supports the growing number of expats in Oman, who contribute significantly to the country’s workforce across various sectors.
Once the work permit is approved, the employer typically facilitates the residence visa, allowing the foreign employee to legally live and work in the country. This process, which is managed by the employer, minimises the administrative burden on the employee and supports companies in building a skilled and diverse workforce.
Cost of Company Formation in Oman
When it comes to Setting Up a Business in Oman, there are costs involved. The company registration costs in Oman differ based on the type of business. They include registration fees, legal and other professional fees, office space, Employer and employee visas, staff salaries, and operating capital requirements.
In addition to the above expenses, other costs may be involved, such as obtaining additional business licenses, registering for tax and hiring an accountant. Although the overall cost is generally low, it varies based on factors such as the type and size of your business and its location.
Oman’s Trade Agreements with Other Countries
Oman has positioned itself as a trade friendly economy by entering into several Free Trade Agreements (FTAs), aiming to diversify its economy and strengthen international trade ties. With the help of these agreements, businesses can benefit from reduced tariffs, easing trade barriers, and fostering economic growth. Oman has established more than 105 international agreements with countries worldwide. The country also has a bilateral FTA with the United States, signed in 2006. Some other countries include Bahrain, Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Singapore, among others. With multiple FTAs in place, company registration in Oman offers companies strategic access to markets in the GCC, US, and Asia - making it an ideal time to invest in Oman.
Oman currently maintains 34 effective double taxation treaties with various countries and territories. These agreements are designed to eliminate the risk of double taxation on income and promote transparency. Such agreements also aim to encourage the exchange of services, facilitate capital movement, and contribute to the diversification of national income.
Documents Required for Company Formation in Oman
- Identity cards of all shareholders
- A copy of passports and visas (if applicable) of all the shareholders
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Certificate of initial capital investment
- Tax Registration Certificate
- A complete business registration form
- Chamber of Commerce and Industry Affiliation Certificate
What our clients say
Gryffin Capitalist made the process of setting up my business in Oman seamless and stress-free. The team assisted me through every step of company registration.
Gryffin Capitalist made setting up our business in Oman a stress-free experience. They handled the paperwork and guided us step-by-step through Oman’s legal requirements.
Gryffin Capitalist made starting my business in Oman a seamless process. Their expertise in Oman laws ensured a smooth setup process. I recommend GC to anyone.
Why Choose Gryffin Capitalist to register a Company in Oman?
The process of registering a company in Oman requires careful planning and adherence to local legal requirements. We recommend a local consultant who can facilitate smoother navigation through this process, ensuring compliance with all regulations while allowing entrepreneurs to focus on their business strategies.
Gryffin Capitalist can help you through the company registration process in Oman. Our senior consultant will understand your business requirements and provide a customized solution that suits your business. Start your Oman company registration process today.
Ongoing Support
Tailored Solutions
Quality Professional Services
Expertise and Experience
Timely and Transparent Process
Compliance and Legal Support
Our Services in Oman
We offer a wide range of services in Oman. We assist in Company registration and other corporate services in Oman.
Frequently Asked Questions (FAQs)
The Ministry of Commerce and Industry(MOCI) is the primary regulatory body for company registration.
Oman's legal precedents and laws are based on common law, and business laws are pretty lenient. In Oman's commercial courts, all types of business disputes are arbitrated.
The International Capital and Investment Law (Royal Decree No. 50/2019) is the primary legislation governing international investment in Oman.
The Employment Law, which was established by Sultani Decree No. 35/2003, is the primary statute governing employment and the relationships that result from it.
The following documents are essential:
- Visas and Shareholder Information
- Tax Registration Document
- Shareholder's Identity Card
- Initial Certificate of Deposit
- Certificate of Chamber of Commerce and Industry Membership.
The MOCI (Ministry of Commerce and Investment) must hold the name in reserve. The LLC's name must accurately describe the kind of activities it engages in.
The name must adhere to the MOCI's guidelines. The name must not mislead the public or shareholders.
The following corporate structures are permitted:
- Limited Liability Company
- Joint enterprise
- Joint Stock Businesses
- Holding Company
- Branch Office
- Representative Office.
The advantages of an Omani company registration are as follows:
- Direct foreign investment
- Free Trade Accords
- No resident shareholder is necessary.
The following requirements are mandatory:
- Company taxes
- Tax on Small Businesses
- LLC Conformity
- Annual Meeting of the Whole.
No, in order to incorporate in Oman, a resident director is not necessary. In an Omani company, directors are not required to be citizens of Oman.
Common law serves as the foundation for all Omani legislative decisions and statutes. Oman's business laws are relatively lenient. In Omani commercial courts, conflicts pertaining to business are resolved in all ways.
The steps mentioned below are:
- Choosing the activities carried out in the business
- Registering the Company
- Submit Documents
- Reserve Name & Pay the Fees
- Get the Certificate of Incorporation and License.
