If you are considering starting a business in Oman, this guide covers every step of the process. From choosing your company structure to opening a corporate bank account, you will find the exact information needed to register your company confidently.
Oman welcomes foreign investors. Since the Foreign Capital Investment Law (FCIL) passed in 2020, entrepreneurs from any country can own 100% of their Omani company. There is no requirement for a local sponsor or Omani partner in most sectors.
We have helped more than 500 entrepreneurs from Iran, Germany, the UK, France, India, Pakistan, and other countries set up companies in Oman. This page reflects that real-world experience.
Types of Companies You Can Form in Oman
The Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) recognizes several company structures. Your choice depends on the number of shareholders, your liability preference, and whether you plan to operate locally or regionally.
LLC — Limited Liability Company
The LLC is the most popular choice for foreign investors in Oman. It requires at least 2 shareholders. Each shareholder's liability is limited to their capital contribution. Personal assets remain protected.
An LLC allows 100% foreign ownership. There is no minimum capital requirement by law, but having at least OMR 5,000 is recommended for practical purposes. An LLC can conduct any lawful business activity.
Best for: Medium to large businesses, partnerships, and companies with multiple investors. Many Iranian and European entrepreneurs choose this structure for trading, consulting, and logistics operations.
SPC — Single Person Company
The SPC is designed for solo entrepreneurs. A single owner controls all operations and decisions. Liability is limited to the company's investments, not your personal assets.
Like the LLC, an SPC allows 100% foreign ownership. It suits freelancers, independent consultants, and small business owners who want full control without a partner.
Best for: Solo entrepreneurs, freelancers, and one-person consultancies. Popular with professionals from India and Pakistan starting IT, marketing, or consulting firms.
Wholly Owned Subsidiary
International companies expanding into Oman can register a wholly owned subsidiary. This can be structured as either an LLC or SPC with the parent company as the sole or majority shareholder.
Best for: Corporations from Europe, Iran, or Asia expanding their Gulf footprint. The subsidiary operates independently under Omani law while the parent company retains ownership.
Branch Office
A branch office allows a foreign company to operate in Oman without incorporating a separate entity. The branch is not a separate legal person — the parent company bears full liability.
At least one foreign director must oversee branch operations in Oman. This structure works for companies that want market presence without full incorporation.
Best for: Companies testing the Omani market or executing specific contracts. Common among construction firms and engineering companies from Germany, France, and the UK.
Representative Office
A representative office cannot generate profit. It exists solely for market research, promotional activities, or maintaining a brand presence. This is non-commercial — no invoicing, no contracts, no sales.
Best for: Companies conducting market feasibility studies before committing to full incorporation.
Joint Stock Company (SAOC / SAOG)
Joint stock companies suit larger businesses, especially those considering public offerings. SAOG (public) companies can list shares on the Muscat Stock Exchange. SAOC (closed) companies have a smaller shareholder base.
Best for: Large enterprises planning equity fundraising or public listings.
| Entity Type | Min. Shareholders | Foreign Ownership | Liability | Best For |
|---|---|---|---|---|
| LLC | 2 | 100% | Limited | Medium–large businesses |
| SPC | 1 | 100% | Limited | Solo entrepreneurs |
| Branch Office | Parent co. | 100% | Parent liable | Market entry, contracts |
| Representative | Parent co. | 100% | Non-commercial | Market research |
| SAOC / SAOG | 2+ / 40+ | Up to 100% | Limited | Large enterprises, IPOs |
How to Register a Company in Oman: Step-by-Step
The company registration process in Oman is straightforward. With all documents ready, expect completion in 3–7 working days. Here is exactly what happens:
Choose Your Company Type
Decide between LLC, SPC, branch office, or subsidiary. Consider the number of shareholders, your liability preference, and whether you need an office in Oman. Our team advises you based on your specific business activity.
Time: 1 day (consultation)
Register Your Business Name
Pick three potential company names. Names must comply with MoCIIP regulations — they cannot be trademarked or identical to existing registered companies. We check availability and register the approved name.
The name must be in Arabic and can include an English translation. Numbers and abbreviations are not allowed as standalone names.
Time: 1–2 days
Draft and Sign the Memorandum of Association (MOA)
The MOA is your company's founding document. It includes the company name, business activities, share capital, and management structure. All shareholders sign the MOA electronically.
You do not need to travel to Oman for this step. There is no notarization required. No Power of Attorney is needed. The process is entirely digital through the MoCIIP system.
Time: 1 day
Obtain Licenses and Certificates
We secure the following on your behalf:
Investment License (1 year) — mandatory for foreign-owned businesses. Issued by MoCIIP.
Commercial Registration (CR) (3 years) — your official business registration certificate. This is your oman commercial registration number used for all business transactions.
Chamber of Commerce Membership (1 year) — registration with the Oman Chamber of Commerce & Industry (OCCI).
Tax Certificate (1 year) — issued by the Tax Authority of Oman for compliance.
Permit License (1 year) — covers specific operational permissions based on your activity.
Feasibility Report — prepared by an approved auditor demonstrating business viability.
Time: 1–2 days
Open a Corporate Bank Account
Every formation package includes a corporate bank account in OMR currency. We open accounts at Sohar Bank, Dhofar Bank, or National Bank of Oman — whichever best fits your transaction needs.
Get Sector-Specific Licenses (If Required)
Certain industries need additional permits. Healthcare, education, construction, food services, and financial services each have their own licensing authority. We handle the application for you.
Benefits of Setting Up a Company in Oman
100% Foreign Ownership — No Local Sponsor
Oman allows full foreign ownership on the mainland and in free zones. This changed in 2020 when the Foreign Capital Investment Law removed the cap that previously limited foreign ownership to 70%.
For Iranian entrepreneurs, this is a major advantage. Unlike some neighbouring countries, Oman does not restrict company ownership based on nationality. German, French, British, Indian, and Pakistani investors enjoy the same rights.
Low Formation Cost
Basic company formation costs OMR 500. Compare that to the UAE (AED 15,000+), Saudi Arabia (SAR 10,000+), or Bahrain (BHD 1,340 for standard packages). Oman offers one of the most affordable entry points in the GCC.
See our detailed cost comparison →
Strategic Location
Oman sits at the mouth of the Persian Gulf. Muscat is a 90-minute flight from Dubai, a 2-hour flight from Tehran, and connects directly to Mumbai, Karachi, and major European cities.
The Sohar Free Zone and Sohar Port provide direct shipping routes to Iran, India, East Africa, and Europe. This makes Oman ideal for import-export, logistics, and manufacturing businesses.
Favourable Tax Regime
Oman's tax environment is one of the most competitive in the Gulf region. No personal income tax. Low corporate tax rates. Zero VAT on exports.
No Omanization in Year One
New companies have zero Omanization requirements during their first year. Starting year two, you hire just one Omani national. This gradual approach gives foreign businesses time to establish themselves before meeting local employment targets.
Remote Registration
You do not need to be physically present in Oman to register. The entire process — from name registration to license issuance — is handled electronically. Many of our clients from Iran, Germany, the UK, France, India, and Pakistan have never visited Oman before forming their companies.
Free Zone Advantages
Oman has several free zones offering additional benefits: tax exemptions, customs-free imports and re-exports, simplified setup, and 100% foreign ownership. The Sohar Free Zone is particularly popular with manufacturing and logistics companies.
Oman's Tax System for Companies
Understanding Oman's tax structure is critical for financial planning. The system is straightforward and competitive compared to most GCC and European jurisdictions.
Corporate Tax Rates
3% tax applies to companies with annual revenue below OMR 100,000. This benefits startups, small enterprises, and early-stage companies.
15% tax applies to companies earning above OMR 100,000 annually. This rate is competitive — lower than the UAE's 9% + 15% for larger entities, and significantly below European corporate tax rates (Germany: ~30%, France: 25%, UK: 25%).
Value-Added Tax (VAT)
5% VAT on domestic sales of goods and services. This rate is among the lowest in the region.
0% VAT on exports. If you sell goods or services to clients outside Oman, VAT does not apply. This is a major advantage for trading companies and service providers with international clients — especially those serving Iranian, Indian, and European markets.
No Personal Income Tax
Oman does not levy personal income tax. Your salary, dividends, and personal earnings are not taxed at the individual level.
| Tax Type | Rate | Notes |
|---|---|---|
| Corporate Tax (under OMR 100K) | 3% | On annual profits |
| Corporate Tax (over OMR 100K) | 15% | On annual profits |
| VAT (domestic) | 5% | Goods & services sold in Oman |
| VAT (exports) | 0% | Zero-rated |
| Personal Income Tax | 0% | Not applicable in Oman |
| Withholding Tax | 10% | On certain payments to non-residents |
For detailed information, visit the Tax Authority of Oman website.
Labour Laws and Omanization Requirements
Hiring in Year One — No Omanization
During your first year of operations, you have no obligation to hire Omani nationals. This lets you build your team based purely on skills and availability. You can hire employees from any country — Iran, India, Pakistan, Philippines, Nepal, Bangladesh, or Europe.
Year Two and Beyond
From the second year, you need one Omani employee. As your company grows, additional Omani hires may be encouraged depending on your industry. The Ministry of Labour sets Omanization targets by sector.
Work Permits for Foreign Employees
Hiring foreign staff requires a labour permit from the Ministry of Labour. The employer sponsors the work visa. Processing is handled through the Royal Oman Police (ROP).
Read our complete work visa guide →
Working Hours
The standard workweek is 48 hours — 9 hours per day, 6 days a week. During Ramadan, Muslim employees work 6 hours per day. Employers must provide a 30-minute rest break after every 6 hours of continuous work.
Employee Leave
Employees receive a minimum of 30 calendar days of paid annual leave. Sick leave, maternity leave, and national holidays are also mandated by Omani labour law.
Oman Free Zones for Foreign Investors
Oman's free zones offer enhanced incentives beyond what's available on the mainland. The most notable is the Sohar Free Zone, located near Sohar Port on Oman's northern coast.
Key Free Zone Benefits
100% foreign ownership (same as mainland). Tax exemptions for up to 25 years. Zero customs duty on imports and re-exports. No minimum capital requirement. Full repatriation of profits and capital.
Who Uses Oman Free Zones?
Manufacturing companies, logistics firms, and trading businesses benefit most. Companies importing raw materials from Iran or India and re-exporting finished products to Europe, Africa, or other GCC states find the free zone structure especially valuable.
Other free zones include Duqm (Special Economic Zone), Salalah Free Zone, Al Mazunah Free Zone, and Knowledge Oasis Muscat.
Company Formation in Oman vs. Other GCC Countries
| Factor | Oman | UAE (Dubai) | Bahrain | Saudi Arabia |
|---|---|---|---|---|
| Formation Cost | From OMR 500 | From AED 15,000 | From BHD 1,340 | From SAR 10,000 |
| Foreign Ownership | 100% | 100% (mainland since 2021) | 100% | 100% (most sectors) |
| Corporate Tax | 3% / 15% | 0% / 9% | 0% | 20% |
| VAT | 5% | 5% | 10% | 15% |
| Registration Time | 3–7 days | 3–10 days | 7–14 days | 5–15 days |
| Personal Income Tax | 0% | 0% | 0% | 0% |
| Market Saturation | Low | High | Medium | Medium |
Oman stands out for its affordability and low competition. While Dubai offers a larger economy, Oman's OMR 500 entry point and 3% tax rate for small businesses make it the most cost-effective option in the GCC for startups and small enterprises.
Real Examples: Who Registers Companies in Oman?
Iranian Trading Company
A Tehran-based entrepreneur registered an LLC in Oman to import consumer goods from China and distribute them across the Gulf. Oman's direct shipping routes and trade relationship with Iran made this possible. Total cost: OMR 1,700 (virtual office package). Timeline: 5 working days.
German IT Consultancy
A Berlin-based software developer formed an SPC in Oman to serve clients in the Middle East. With 0% VAT on exported services and no personal income tax, the tax savings compared to Germany (30%+ effective rate) were significant.
Indian Import-Export Business
An entrepreneur from Mumbai registered an LLC in the Sohar Free Zone to import textiles from India and re-export to African markets. The free zone's customs exemptions eliminated import duties entirely.
French Consulting Firm
A Paris-based management consultancy opened a branch office in Oman to serve Omani government contracts. The branch structure let them operate under their existing French corporate identity.
Company Formation Cost in Oman — Quick Overview
We offer four packages to match different operational needs. Every package includes the same core registrations and licenses. The difference is the office setup.
| Package | Price | Office Included | Best For |
|---|---|---|---|
| Basic Formation | OMR 500 | No office | Startups, remote businesses |
| Virtual Office | OMR 1,700 | Business address (1 year) | Remote-first companies |
| Work Desk | OMR 2,150 | Shared workspace (1 year) | Occasional in-person needs |
| Private Cabin | OMR 3,500 | Private office (1 year) | Established businesses |
All packages include: commercial registration (3 years), investment license (1 year), feasibility report, permit license (1 year), chamber of commerce membership (1 year), tax certificate (1 year), and corporate bank account.
Visa Options After Company Formation
Once your company is registered, you can apply for:
Investor Visa
The investor visa grants long-term residency in Oman. You can sponsor your spouse and dependent children. Multiple entry and exit privileges included. We offer two investor visa packages:
OMR 980 — includes 1-year investor visa.
OMR 1,250 — includes 2-year investor visa.
Processing time: 15–20 days. Full investor visa guide →
Work Visa for Employees
Hire foreign employees by sponsoring their work visas. The process involves a labour permit from the Ministry of Labour and visa processing through the Royal Oman Police.
License Renewal Requirements
After initial registration, certain documents need periodic renewal to keep your company compliant:
Commercial Registration: Valid for 3 years. Renewal through MoCIIP.
Investment License: Annual renewal.
Chamber of Commerce Membership: Annual renewal through OCCI.
Tax Certificate: Annual renewal through the Tax Authority.
Permit License: Annual renewal.
We offer renewal services to ensure your company stays compliant year after year. Contact us for renewal support →
Frequently Asked Questions About Company Formation in Oman
Yes. The 2020 Foreign Capital Investment Law allows 100% foreign ownership in most sectors. This applies on the mainland and in free zones like Sohar Free Zone. No local Omani partner or sponsor is required.
Basic formation starts at OMR 500. Virtual office packages are OMR 1,700. Work desk setups cost OMR 2,150. Private cabin packages are OMR 3,500. All include commercial registration, investment license, tax certificate, and bank account. Full cost breakdown →
With all documents prepared, registration takes 3–7 working days. Name registration takes 1–2 days, MOA drafting takes 1 day, and government approvals take 1–2 days.
No. The entire process is handled remotely. No travel, no notarization, no Power of Attorney. We manage everything digitally through MoCIIP.
No. Since 2020, foreign investors can own 100% of their company without an Omani partner. Some restricted activities may require special approval, but the vast majority of business sectors are fully open.
An LLC needs at least 2 shareholders and suits partnerships or multi-investor businesses. An SPC has a single owner and suits solo entrepreneurs. Both offer limited liability and 100% foreign ownership.
3% for companies earning below OMR 100,000 per year. 15% for companies above that threshold. Exports are zero-rated for VAT. No personal income tax exists in Oman.
Yes. The registration process is fully digital. We have helped hundreds of entrepreneurs from Iran, Germany, the UK, India, and other countries register without visiting Oman.
Oman's free zones (Sohar, Duqm, Salalah, Al Mazunah) offer tax exemptions up to 25 years, zero customs duty, and full profit repatriation. They are ideal for manufacturing, logistics, and trading companies.
Zero Omanization in year one. From year two, you hire one Omani national. Requirements increase gradually based on your industry and company size.
Yes. Oman offers the lowest formation costs in the GCC (from OMR 500), 100% foreign ownership, 3% corporate tax for small businesses, and a less saturated market than Dubai or Saudi Arabia. Its strategic location connects Gulf, Indian Ocean, and African markets.
5% VAT applies to goods and services sold within Oman. Exports are zero-rated (0% VAT). This benefits companies with international clients.
Standard requirements include an investment license, commercial registration, chamber of commerce membership, tax certificate, and permit license. Some industries need additional sector-specific permits.
Annual renewals include the investment license, chamber of commerce membership, tax certificate, and permit license. Commercial registration renews every 3 years.