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Business Licenses in Oman: Which One Do You Need? (2025 Guide)
Business Licenses in Oman: Which One Do You Need? A Complete Guide for 2025
Oman’s thriving economy and investor-friendly policies make it an attractive destination for businesses worldwide. However, before you can start operations, you’ll need to obtain the appropriate business license. With various types of licenses available, it’s crucial to understand which one aligns with your business activities. This guide will walk you through the different business licenses in Oman, their requirements, and how to apply for them in 2025.
What is a Business License in Oman?
A business license in Oman is an official permit that allows companies to legally operate within the country. It is issued by the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) and may require approvals from other government entities depending on the industry.
All businesses in Oman must obtain a valid business license to operate legally, whether they are setting up as a Limited Liability Company (LLC), Sole Proprietorship (SPC), Branch Office, or a Free Zone Company.
Types of Business Licenses in Oman
1. Commercial License
Required for businesses involved in trading, import/export, and retail operations.
Suitable for general trading companies, supermarkets, wholesale traders, and e-commerce businesses.
Issued by MoCIIP but may require additional approvals for specific goods.
2. Industrial License
Required for businesses involved in manufacturing, production, and industrial activities.
Mandatory for companies in heavy industries, food processing, and construction material production.
Issued by MoCIIP, with environmental approvals required for certain industries.
3. Professional License
Required for service-based businesses such as consultancies, legal firms, IT services, and accounting firms.
Individuals and firms providing professional services must have certifications from relevant authorities.
Issued by MoCIIP, with approvals from professional regulatory bodies (if applicable).
4. Tourism License
Required for businesses in hospitality, travel agencies, tour operators, and hotel management.
Essential for companies looking to operate resorts, adventure tourism, and travel services.
Issued by the Ministry of Heritage and Tourism (MoHT).
5. Health & Medical License
Required for hospitals, clinics, pharmacies, and medical laboratories.
Medical professionals such as doctors and pharmacists must obtain additional certifications.
Issued by the Ministry of Health (MoH).
6. Educational License
Required for schools, universities, training centers, and online educational platforms.
Approval from the Ministry of Education (MoE) is mandatory.
Includes licenses for vocational training institutes and technical education providers.
7. Media and Publishing License
Required for businesses involved in advertising, publishing, and media production.
Includes licenses for TV channels, radio stations, and digital marketing agencies.
Issued by the Ministry of Information.
8. Agricultural and Fisheries License
Required for companies in farming, fishing, and livestock trading.
Includes approvals from the Ministry of Agriculture, Fisheries, and Water Resources.
9. Free Zone Business License
Required for companies operating in Oman’s Free Zones such as Sohar Free Zone, Duqm SEZAD, Al Mazunah, and Salalah Free Zone.
Offers 100% foreign ownership, tax exemptions, and duty-free import/export benefits.
10. Mining and Energy License
Required for companies in oil & gas, renewable energy, and mineral extraction.
Issued by the Ministry of Energy and Minerals.
Business licenses are mandatory for all companies operating in Oman. They ensure that your business complies with local laws and regulations, protect consumers, and maintain industry standards. Without the proper license, your business could face penalties, fines, or even closure.
Steps to Obtain a Business License in Oman
Step 1: Choose the Right Business Structure
Select a business entity: LLC, Sole Proprietorship (SPC), Branch Office, or Free Zone Company.
Each entity has specific licensing requirements.
Step 2: Reserve a Trade Name
The trade name should be unique and comply with Omani regulations.
Apply through MoCIIP to get name approval.
Step 3: Register the Company
Submit the required documents, including:
Memorandum of Association (MOA)
Shareholder passport copies
Office lease agreement
Step 4: Obtain Necessary Approvals
Depending on your industry, you may need approvals from:
Ministry of Health (for healthcare businesses)
Ministry of Heritage & Tourism (for travel agencies)
Ministry of Energy & Minerals (for energy and mining companies)
Step 5: Pay Licensing Fees
Fees vary based on license type and company activity.
Step 6: Receive the Business License
Once all requirements are met, the business license is issued, allowing the company to operate legally in Oman.
Key Documents Required
To apply for a business license in Oman, you’ll typically need the following documents:
Passport copies of shareholders and managers
Lease agreement for business premises
Feasibility study (for industrial and construction licenses)
Professional qualifications (for professional licenses)
Approval from the relevant ministry (e.g., Ministry of Tourism for tourism licenses)
Benefits of Obtaining the Right Business License
Legal Compliance: Avoid penalties and ensure smooth operations.
Credibility: Build trust with customers, partners, and investors.
Access to Funding: Licensed businesses are more likely to secure loans and grants.
Market Access: Operate in regulated industries with confidence.
Challenges to Consider
Complex Regulations: Navigating Oman’s licensing requirements can be challenging without professional assistance.
Time-Consuming Process: Obtaining approvals and licenses may take several weeks.
Industry-Specific Requirements: Some licenses require additional permits or certifications.
FAQs About Business Licenses in Oman
1. Can I operate without a business license in Oman?
No, operating without a license is illegal and can result in fines or closure.
2. How long does it take to get a business license in Oman?
The process typically takes 2–4 weeks, depending on the license type and completeness of documents.
3. Can I change my business activity after obtaining a license?
Yes, but you’ll need to apply for a new license that aligns with the updated activity.
4. Do I need a local sponsor to obtain a business license?
No, Oman allows 100% foreign ownership in most sectors.
5. What happens if I operate with an expired license?
Operating with an expired license can lead to penalties, fines, or suspension of business activities.
Conclusion
Obtaining the right business license is a critical step in establishing your presence in Oman. Whether you’re starting a commercial, industrial, or professional venture, understanding the licensing requirements will ensure a smooth and compliant setup process. By following this guide, you’ll be well-equipped to navigate Oman’s business landscape and secure the necessary licenses to operate successfully in 2025.
How setupinoman Can Help
At setupinoman, we simplify the process of obtaining a business license in Oman by offering:
Expert Consultation – Identifying the right license for your business.
Document Preparation – Assisting with MOA, approvals, and trade name registration.
Regulatory Compliance – Ensuring full compliance with Omani business laws.
Post-License Support – Helping with office setup, tax registration, and employee hiring.
Have Any Question?
Do not hesitate to contact us. We’re a team of experts ready to talk to you.
basic
OMR 500
- Company Formation
- Corporate Bank Account
- Office Address
- Power of Attorney
Standard
OMR 1700
- Company Formation
- Corporate Bank Account
- Virtual Address
- Power of Attorney
Gold
OMR 2150
- Company Formation in Oman
- Workdesk Address
- Corporate Bank Account
- Mail Routing
- Secretary
Premium
OMR 3500
- Company Formation
- Address: Private Cabin
- Corporate Bank Account
- Telephone
- Wifi
- Security
- Mail Routing
- 10-15 Business Days
Oman’s Tax and Labor Laws (Updated November 26, 2024)
Oman’s business environment is increasingly investor-friendly, with flexible tax and labor regulations designed to support new initiatives of company formation in Oman as they establish and grow. Understanding these regulations, especially around corporate tax and labor requirements, can help you make the most of Oman’s pro-business landscape.
Corporate Tax Rates
Oman’s corporate tax system is simple and favorable, particularly for new businesses:
- 3% Corporate Tax Rate: For companies with annual revenue below 100,000 OMR, a minimal 3% tax on profits applies. This low rate is especially beneficial for startups and small enterprises.
- 15% Corporate Tax Rate: Companies generating revenue above 100,000 OMR are subject to a 15% tax on profits, making it competitive compared to many other markets in the region.
These straightforward rates make tax planning easier for businesses of all sizes, allowing you to focus on growth and expansion.
Value-Added Tax (VAT)
VAT is set at a competitive rate from tax authority of Oman, applying only to local sales and certain services:
- 5% VAT on Domestic Sales: A 5% VAT applies to goods and services sold within Oman. This rate is relatively low, helping to keep operational costs down.
- Zero VAT on Exports: For companies with international clients, Oman offers a major advantage—exports are generally exempt from VAT. This makes it easier for businesses to maintain competitive pricing on the global market.
Labor Laws and Omanization Requirements
Oman’s labor laws are business-friendly from ministry of labor of Oman, particularly for new investors looking to establish a workforce:
- No Omanization Requirement in the First Year: New companies are exempt from hiring Omani nationals during their first year of operations. This allows you to focus on building your team and getting your business off the ground without immediate labor restrictions.
- Flexible Omanization from the Second Year: Starting in the second year, a requirement to employ just one Omani national is introduced. This minimal requirement supports the local economy while remaining manageable for foreign-owned businesses. As your business grows, additional Omani hires may be encouraged, depending on your industry, but requirements remain flexible.
This gradual approach to Omanization makes it easier for foreign businesses to adapt while fulfilling local employment initiatives at a comfortable pace.
Work Permits and Visas for Foreign Employees
- Straightforward Work Permit Process: Businesses in Oman can easily hire foreign employees to meet their specific talent needs. Work permits are issued for expatriates when there is a demonstrated need for specific skills not readily available locally.
- Simple Visa Management: Expat employees must have residence visas, which are typically handled by the employer. This straightforward visa process helps you attract global talent as you build your team in Oman.
Flexible Working Hours and Conditions
Oman offers a balanced workweek, with standard working hours that align with international norms:
- Standard Working Hours: The typical workweek in Oman is 48 hours, or nine hours per day, with reduced hours during Ramadan (six hours per day) for Muslim employees.
- Employee Rights: Oman’s labor laws protect both local and expatriate workers, ensuring fair treatment and a professional work environment. Employment contracts outline job responsibilities, working hours, benefits, and termination policies, giving employees and employers clear expectations.
Key Takeaways for Investors
- Ease of Hiring in Year One: The lack of Omanization requirements in your first year lets you focus on quickly establishing your team.
- Simple, Gradual Omanization: Adding only one Omani employee in your second year offers flexibility while aligning with Oman’s local employment goals.
- Favorable Tax and VAT Structure: With a 3% or 15% corporate tax and a 5% VAT on domestic sales, Oman’s tax environment supports sustainable business growth.
Company Formation in Oman: Cost Breakdown (2024)
Thinking about forming a company in Oman? Here’s a detailed breakdown of the costs for company formation in Oman in 2024, along with key inclusions tailored to different office needs and business types:
Basic Formation (OMR 500)
This budget-friendly option is ideal for startups and small businesses looking to establish their presence in Oman without a physical office. The basic company formation in Oman package includes essential legal and registration fees, covering:
- Commercial Registration for 3 years from the (MoCIIP)
- Investment License for 1 year
- from the (MoCIIP)
- Feasibility Report from an approved auditor
- Permit License for 1 year
- from the (MoCIIP)
- Chamber of Commerce Membership for 1 year from the Oman Chamber of commerce & Industry (OCCI)
- Tax Certificate valid for 1 year
- Corporate Bank Account in OMR currency in Sohar Bank, Dhofar Bank or National Bank of Oman.
This package offers a streamlined approach to business registration in Oman for budget-conscious companies.
Virtual Office (OMR 1,700)
The virtual office setup in Oman is designed for remote-first businesses or those seeking a credible business presence without high overheads. This company formation in Oman package includes all basic formation costs plus a professional business address for receiving official correspondence, making it ideal for projecting a professional image. Inclusions are:
- Commercial Registration for 3 years
- from the (MoCIIP)
- Investment License for 1 year
- from the (MoCIIP)
- Feasibility Report from an approved auditor
- Permit License
- for 1 year from the Oman Chamber of commerce & Industry (OCCI)
- from the (MoCIIP)
- Chamber of Commerce Membership for 1 year
- Tax Certificate valid for 1 year
- Office Address for 1 year
- Corporate Bank Account in OMR currency in Sohar Bank, Dhofar Bank or National Bank of Oman.
Work Desk (OMR 2,150)
The work desk setup includes all virtual office benefits, along with a dedicated workspace within a shared environment. This is suitable for companies needing occasional in-person meetings or a collaborative workspace. Inclusions are:
- Commercial Registration for 3 years
- from the (MoCIIP)
- Investment License for 1 year
- from the (MoCIIP)
- Feasibility Report from an approved auditor
- Permit License for 1 year from the (MoCIIP)
- Chamber of Commerce Membership
- for 1 year from the Oman Chamber of commerce & Industry (OCCI)
- Tax Certificate valid for 1 year
- Dedicated Office Address for 1 year
- Corporate Bank Account in OMR currency in Sohar Bank, Dhofar Bank or National Bank of Oman.
This package is perfect for businesses looking to establish a professional presence in Oman without the expense of a standalone office.
Private Cabin (OMR 3,500)
The private cabin setup provides a secure, dedicated office space ideal for businesses that require confidentiality, brand distinction, and a professional environment. This comprehensive company formation in Oman package includes:
- Commercial Registration for 3 years
- from the (MoCIIP)
- Investment License for 1 year
- from the (MoCIIP)
- Feasibility Report from an approved auditor
- Permit License for 1 year
- from the (MoCIIP)
- Chamber of Commerce Membership
- for 1 year from the Oman Chamber of commerce & Industry (OCCI)
- Tax Certificate valid for 1 year
- Private Office Address for 1 year
- Corporate Bank Account in OMR currency in Sohar Bank, Dhofar Bank or National Bank of Oman.
This premium option is best suited for businesses that need dedicated meeting areas, secure storage, and a branded office in Oman.
Detailed Inclusions for Company Formation Packages in Oman
Each company formation package is designed to meet specific business needs and ensure compliance with Oman’s legal and regulatory requirements. Packages include essential licenses and certificates to facilitate a smooth and compliant business setup in Oman, such as:
- Commercial Registration valid for 3 years
- Investment License for 1 year, essential for foreign-owned businesses
- Feasibility Report from a certified auditor, demonstrating your business’s potential
- Permit License for 1 year, covering specific operational permissions
- Chamber of Commerce Membership
- for 1 year from the Oman Chamber of commerce & Industry (OCCI), establishing your local business presence
- Tax Certificate for 1 year, ensuring tax compliance with Omani regulations
- Office Address provided for 1 year (based on package selection)
- Corporate Bank Account in OMR currency in Sohar Bank, Dhofar Bank or National Bank of Oman.
With each package, we ensure that your company formation in Oman is compliant, efficient, and tailored to your operational needs. Let us guide you through each stage of setting up your business in Oman so you can start on a solid foundation.