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LLC Company Formation in Oman for Foreigners (2025 Guide)
Learn how to register a Limited Liability Company in Oman with full foreign ownership options, step-by-step procedures, and updated regulations.
LLC Company Formation in Oman for Foreigners: The Ultimate 2025 Guide
Oman has cemented its position as a top destination for foreign direct investment, thanks to a series of landmark legislative reforms designed to liberalize its economy. At the forefront of these changes is the Foreign Capital Investment Law (FCIL) – Royal Decree 50/2019, which has revolutionized the business landscape by allowing 100% foreign ownership of companies in numerous sectors on the mainland.
For international investors, the Limited Liability Company (LLC) has emerged as the most popular, flexible, and trusted legal structure for establishing a presence in the Sultanate. An LLC offers robust legal protection, operational versatility, and direct access to Oman’s rapidly growing domestic and regional markets.
This comprehensive guide will walk you through the entire process of forming a mainland LLC in Oman as a foreigner, detailing the key benefits, essential steps, and associated costs. We will highlight the crucial role of expert guidance and explain how Setup in Oman serves as your indispensable partner, simplifying every stage of your business formation journey.
What Is an LLC in Oman?
An LLC (Limited Liability Company) is a legal business entity that:
Requires 1 to 50 shareholders
Limits liability to the company’s capital
Allows full foreign ownership in permitted sectors
Offers a straightforward structure for small to medium enterprises (SMEs)
It is the preferred structure for most foreign entrepreneurs setting up in Oman—providing protection, credibility, and access to local and international markets.
Benefits of LLC Company Formation in Oman
✅ 100% foreign ownership allowed in many business activities
✅ No personal income tax
✅ Low corporate tax (9% to 15%)
✅ Simple repatriation of capital and profits
✅ Access to government contracts and tenders
✅ Strong legal protections under the Commercial Companies Law
✅ Banking and visa eligibility for investors and employees
Key Requirements to Form an LLC in Oman (2025)
Minimum of 1 shareholder (individual or corporate)
A registered office address in Oman
An Omani resident manager (can be foreigner with residency)
Activity approval from relevant ministries or authorities
Minimum capital requirement: OMR 20,000 (waived in many cases for SMEs)
LLC Ownership Options for Foreigners
There are 3 common scenarios for foreign ownership:
100% Foreign-Owned LLC
Allowed in most sectors under Oman’s FDI Law—no Omani partner required.Foreign-Omani Partnership LLC
Traditional structure where foreigners own up to 70%, and an Omani partner holds 30%.Joint Venture with Government or Local Entity
Often used for larger infrastructure or oil & gas-related projects.
Step-by-Step Process for LLC Company Formation in Oman
Step 1: Name Reservation & Activity Approval
Submit 3 name choices and select your business activity from Oman’s permitted list via the Ministry of Commerce, Industry & Investment Promotion (MoCIIP).
Certain sectors require additional approvals (e.g., healthcare, engineering, education).
Step 2: Draft Memorandum of Association (MoA)
Outline the LLC’s purpose, ownership structure, capital contribution, and governance.
The MoA must be notarized and filed with MoCIIP.
Step 3: Secure a Registered Office Address
Lease a commercial space, virtual office, or shared workspace.
The address must comply with municipal zoning regulations.
Step 4: Deposit Capital and Open Bank Account
Open a corporate bank account and deposit the required capital (OMR 20,000 or as per the business structure).
Obtain a capital deposit certificate from the bank.
Step 5: Obtain Commercial Registration and Licenses
Register your LLC with MoCIIP and obtain the Commercial Registration (CR).
Apply for sector-specific licenses if needed (e.g., tourism, construction, consultancy).
Step 6: Register for Taxes and Labor
Get a Tax Identification Number (TIN) from the Oman Tax Authority.
Register with the Ministry of Labor for employee quotas and visa allocation.
Documents Required
Passport copies of all shareholders and directors
Proof of address for shareholders
Lease agreement for office location
Memorandum of Association (MoA)
Capital deposit certificate
Activity approval letters (if required)
Popular Business Activities for LLCs in Oman (2025)
General trading and import/export
Consultancy (business, legal, marketing, etc.)
Tourism and travel agencies
E-commerce and online businesses
Manufacturing and industrial services
IT and software development
Food & beverage outlets and cloud kitchens
Opportunities for Foreign LLCs in Oman
Tourism & Hospitality: Oman’s natural landscapes are driving investment in eco-tourism, hotels, and tours.
Logistics & Transport: Oman Vision 2040 includes major infrastructure upgrades supporting trade.
Renewable Energy: Solar and green hydrogen projects are growing rapidly.
Digital Services & SaaS: Growing demand for IT, AI, and cybersecurity solutions.
Healthcare & Education: Private clinics, diagnostics, and specialized training centers are encouraged.
Risks & Mitigation Strategies
| Risk | Mitigation Strategy |
|---|---|
| Sector-based restrictions | Review MoCIIP’s activity list and consult an expert |
| Delays in licensing | Engage with local PRO or formation consultant |
| Bank account rejections | Choose investor-friendly banks with clear documentation |
| Visa quota limitations | Apply early and maintain compliance with labor law |
| Lack of market knowledge | Conduct feasibility studies and market research before entry |
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basic
OMR 500
- Company Formation
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- Office Address
- Power of Attorney
Standard
OMR 1700
- Company Formation
- Corporate Bank Account
- Virtual Address
- Power of Attorney
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OMR 2150
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- Corporate Bank Account
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OMR 3500
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Why Choose an LLC in Oman?
The Limited Liability Company (LLC) is a go-to choice for foreign investors for several compelling reasons:
100% Foreign Ownership: The most significant advantage. In most commercial, industrial, and service activities, foreign investors can now own 100% of their company without the need for a local Omani partner or sponsor.
Limited Liability Protection: As the name suggests, an LLC shields the shareholders’ personal assets. Their liability is strictly limited to the amount of their capital contribution to the company, providing crucial financial security.
Operational Flexibility: An LLC can be structured to accommodate a wide range of business activities and ownership models, from a single-shareholder company (known as a Single Proprietorship Company) to a multi-shareholder entity.
Credibility & Recognition: The LLC structure is a globally recognized and trusted business vehicle. It signals credibility to banks, suppliers, and government authorities in Oman.
Direct Market Access: A mainland LLC grants you the right to operate directly in Oman’s local market, bid on government contracts, and establish a physical presence anywhere outside a free zone.
Key Legal Framework
Understanding the core laws is essential for a smooth setup process:
The Foreign Capital Investment Law (FCIL): Royal Decree No. 50/2019 abolished the previous requirement for a local partner and opened up the vast majority of economic sectors to full foreign ownership. This law also provides for the protection of foreign investments and streamlines the approval processes.
The Commercial Companies Law: Royal Decree No. 18/2019 is the primary legislation governing the formation and operation of companies in Oman, including LLCs. It outlines the requirements for articles of association, share capital, and corporate governance.
The Ministry of Commerce, Industry, and Investment Promotion (MoCIIP): MoCIIP is the central regulatory body responsible for all company registrations and for managing the “Invest Easy” online portal. All business formation activities for LLCs, including name reservation and commercial registration (CR), are conducted through this ministry.
Want help forming your LLC in Oman?
We can assist with documentation, licensing, banking, and visa processes.
Strategic Integration of Setup in Oman Services
Navigating the complexities of Omani laws, the “Invest Easy” portal, and multiple government ministries can be overwhelming for foreign investors. Setup in Oman offers a streamlined, “one-stop-shop” approach to simplify this process:
Company Formation (LLC Specific): We specialize in end-to-end LLC Company Formation for foreigners. Our service covers everything from initial consultation on activity eligibility and share capital requirements to drafting and notarizing your MoA and submitting all documents via the “Invest Easy” portal, ensuring a fast and compliant registration.
Investor Visa: For the foreign owner(s) of the LLC, obtaining a legal residency visa is essential. Our Investor Visa services handle the entire application process, from obtaining initial approval to stamping the visa in your passport, allowing you to legally live and work in Oman.
Corporate Bank Account: Opening a corporate bank account in Oman and depositing the share capital can be a challenging step. We have strong relationships with local and international banks and can guide you through the process, providing the necessary documentation to ensure your Corporate Bank Account is opened swiftly and efficiently.
Work Visa: As your business grows, you will need to hire local and international talent. Our Work Visa services manage all the necessary procedures with the Ministry of Labor and the Royal Oman Police to secure work permits for your expatriate employees.
PRO Services: Post-registration, our PRO Services provide continuous administrative support. We handle all ongoing government liaison, annual license renewals, visa renewals, and compliance with all Omani regulations, allowing you to focus on your core business activities.
Key Considerations for Foreign Investors
The Negative List: While 100% ownership is the norm, some activities (e.g., real estate brokerage, certain professional services) are still restricted and may require an Omani partner. Always verify your activity with an expert.
Share Capital: The OMR 20,000 minimum is a firm requirement for most foreign-owned LLCs. Ensure you have the capital available.
Documentation: All foreign-issued documents must be properly attested and legalized before submission.
Local Expertise is Key: The “Invest Easy” portal can be complex, and a single mistake can cause significant delays. Partnering with a local consultant is highly advisable to avoid common pitfalls.
Conclusion: A New Era for Foreign Investment in Oman
Oman’s liberalized legal framework, anchored by the Foreign Capital Investment Law, marks a new era of opportunity for international investors. The ability to establish a 100% foreign-owned LLC on the mainland is a game-changer, providing direct access to a stable, growing economy and a strategic location in the region.
While the process is now more streamlined than ever, navigating the intricacies of local laws and bureaucratic procedures can be daunting. With Setup in Oman as your trusted partner, you can confidently and efficiently establish your LLC, knowing that every detail is handled with expertise and care.
Ready to start your business in Oman?
Contact Setup in Oman today for a personalized consultation and let us guide your successful LLC company formation in the Sultanate.
FAQs
What is the minimum investment required to qualify for a residency visa in Oman?
The minimum investment typically starts from OMR 20,000 for standard investor visas. However, the Golden Visa program requires investments starting from OMR 250,000.
Can I own 100% of my business in Oman as a foreign investor?
Yes, Oman allows 100% foreign ownership in most sectors, especially under the Foreign Capital Investment Law. Some regulated sectors may require local participation.
Is real estate investment enough to obtain a residency visa in Oman?
Yes, under the Golden Visa category, purchasing property worth at least OMR 250,000 can qualify you for long-term residency.
What is the difference between the Golden Visa and the Standard Investor Visa?
Golden Visas offer longer residency terms (5–10 years), faster processing, and broader eligibility, while Standard Investor Visas require lower investment but shorter duration and renewals.
How long does the investor visa process take?
On average, it takes 4 to 8 weeks, depending on security clearance, company registration, and documentation accuracy.
Can I apply for residency before launching my business?
You must complete company registration and capital deposit before applying for the residency visa under the business investor category.
Is it necessary to open a corporate bank account in Oman for this process?
Yes, you need to deposit the minimum share capital into a corporate account to receive the capital deposit certificate, which is essential for visa processing.
Are there any age or nationality restrictions for investor visas?
There are no age restrictions, and citizens from most countries are eligible, although background checks and financial verification are required.
Do I need a physical office in Oman for my business registration?
Yes, a registered office address is mandatory — this can be a virtual office, shared workspace, or physical premises, depending on your business type.
What types of businesses are best for investment-based residency?
Tourism, tech, healthcare, logistics, real estate development, and manufacturing are some of the most attractive sectors for foreign investors.
Is free zone investment also eligible for residency visas?
Yes, businesses established in Oman’s free zones like Duqm or Salalah can qualify, though some limitations apply based on visa type and activity scope.
Can I bring my family with me under an investor visa?
Yes, investor visa holders can sponsor family members including spouse and children, subject to documentation and proof of income.
What are the key documents required for an investor visa application?
Passport copies, security clearance, MOA, business license, capital deposit certificate, tenancy contract, and recent photographs are commonly required.
Do I need to hire local employees?
While not mandatory in all cases, certain sectors may require a minimum Omanization rate to qualify for full operational licensing and staff visa issuance.
What happens if I close my company after receiving the residency visa?
Your visa may be cancelled unless you transfer your sponsorship or obtain a different qualifying residency basis (e.g., real estate or employment).
How long is the investor visa valid?
Standard visas are issued for 2–5 years and renewable; Golden Visas are valid for 5 or 10 years, depending on the investment category.
Can I operate multiple businesses under one investor visa?
Yes, but you must ensure each entity is properly registered, and you hold a qualifying ownership percentage in each.
Are there any tax advantages for foreign investors?
Oman offers no personal income tax and competitive corporate tax rates (15%). Free zones also offer tax holidays for up to 10 years.
Can I change business activities after obtaining a visa?
Yes, but you must update your commercial registration and possibly re-obtain approvals or licenses depending on the new activity.
Is a local sponsor required for mainland businesses?
Not anymore in most sectors. Since the law change in 2020, most businesses can be 100% foreign-owned without requiring a local partner.
How do I maintain my visa status if I spend time abroad?
Investor visas typically allow you to spend time abroad, but extended absence (6+ months) may affect renewal or validity, unless explained.
Are digital or online businesses eligible?
Yes, tech and e-commerce businesses are highly encouraged and eligible for both investor and long-term residency options.
Do I need to show ongoing revenue to maintain the visa?
Not always, but inactivity or lack of compliance may risk rejection during renewal. Annual filings and proof of operation are recommended.
Can I apply for residency through an existing business I acquire?
Yes, provided you meet ownership thresholds and the business is compliant with all legal, tax, and licensing requirements.
What is the role of the Oman Investment Authority in this process?
OIA supports large-scale strategic investments, especially in sectors aligned with Vision 2040. Smaller businesses work mainly with MOCIIP and ROP.
Is the visa tied to one company or can I invest in multiple?
You can invest in multiple companies, but your primary residency visa will be tied to the company where you have majority stake or initial approval.
Do I need health insurance for the investor visa?
Yes, valid health insurance is a prerequisite during visa application and renewal processes.
How much capital is required for the Golden Visa through real estate?
You must invest at least OMR 250,000 in approved properties; for 10-year visas, the amount increases to OMR 500,000 or more.
What is the role of the Royal Oman Police (ROP) in this process?
ROP handles visa issuance, background verification, residency cards, and security clearances.
Can I get citizenship through business investment in Oman?
Currently, Oman does not offer direct citizenship-by-investment programs. However, long-term visa holders may be eligible for permanent residency or naturalization under exceptional circumstances.
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