+968 9596 3381
Phone Number
[email protected]
Email Address
Mon - Thu: 8:00 - 5:00
Online store always open
Labor Card Processing in Oman: 2025 Business Guide to Hiring Legally and Efficiently
Table of Contents
Introduction
What Is a Labor Card in Oman?
Who Needs a Labor Card in Oman?
Requirements Before Applying for Labor Card
Step-by-Step Labor Card Application Process in Oman
Labor Clearance
Labor Card Submission
Medical Test & Biometrics
Visa & ID Issuance
Documents Required for Labor Card Application
Labor Card Costs and Fee Structure (2025)
Labor Card Renewal Process
Labor Card Cancellation and Transfer
Cancellation Process
Transfer to Another Employer
Common Mistakes and How to Avoid Them
PRO Services for Labor Card Processing
Final Thoughts
FAQs
Labor Card Processing Oman
Hiring staff in Oman? Before any expatriate employee can legally work, your business must obtain a Labor Card (also known as a Work Permit). Issued by the Ministry of Labor, this card proves that the employee is authorized to work under your company—and it’s one of the most important documents for maintaining workforce compliance.
Whether you’re a small business onboarding your first staff member, or a large enterprise scaling operations, understanding the labor card processing system in Oman is vital to avoiding fines, hiring delays, or immigration issues.
This 2025 guide explains how to apply for labor cards, associated costs, timelines, Omanization compliance, and how to manage renewals, cancellations, and quotas effectively.
What Is a Labor Card in Oman?
A Labor Card is a government-issued document that allows a foreign worker to be employed legally under a specific company or sponsor in Oman. It serves as:
Proof of labor clearance
Work authorization for expats
Link between the company, employee, and Ministry of Labor
Basis for residence visa processing and insurance
Without it, you cannot apply for a residency permit, sponsor dependents, or access healthcare legally.
Who Needs a Labor Card in Oman?
Any foreign employee working in Oman must have a valid labor card issued by the Ministry of Labor. This includes:
Full-time expatriate workers
Technical staff and engineers
Healthcare and service professionals
Office workers, cashiers, retail employees
Construction, logistics, and industrial labor
Omani nationals do not require labor cards but must be registered in the Public Authority for Social Insurance (PASI) system.
Requirements Before Applying for Labor Card
Before applying for a labor card, your company must meet several preconditions:
Commercial Registration (CR)
Your business must be officially registered with the Ministry of Commerce (MoCIIP) and have a valid trade license.
Municipality and Chamber Approvals
Ensure your tenancy contract and commercial premises are approved by the relevant municipality and that you’re registered with the Chamber of Commerce.
Omanization Compliance
Your company must meet the minimum percentage of Omani nationals in its workforce as defined by the Ministry of Labor.
Workforce Quota Approval
Apply for a labor clearance (quota) that specifies:
Number of foreign workers allowed
Job titles and nationalities
Wage structure or labor classification
Only after this clearance can you proceed to apply for labor cards.
Step-by-Step Labor Card Application Process in Oman
Step 1: Submit Labor Clearance Request
Apply via the Ministry of Labor’s online portal
Choose correct job title, OSIC code, and number of staff
Include justification for expat hiring
Timeline: 5–10 working days
Note: Some sectors may require Omanization inspection or business justification.
Step 2: Get Labor Clearance Approval
If approved, you’ll receive official labor clearance via email or portal. This approval is valid for a specific time (usually 60–90 days).
Step 3: Submit Labor Card Application
Fill in labor card application through the Ministry’s e-service
Upload required documents (see section 6)
Pay processing fees online
Submit biometric and medical test appointment if required
Step 4: Medical Test and Biometric Clearance
The foreign employee must undergo a medical test at an approved clinic
Biometric fingerprinting may be required by Royal Oman Police
Step 5: Visa Stamping and ID Card
Once labor card is approved:
Proceed to residency visa application
After visa approval, employee will receive resident ID card from ROP
Labor card is now complete and employee is fully legal to work in Oman.
Documents Required for Labor Card Application
| Document | Provided By |
|---|---|
| Copy of Commercial Registration (CR) | Employer |
| Valid Trade License | Employer |
| Chamber of Commerce Certificate | Employer |
| Lease Agreement / Municipal Approval | Employer |
| Employee Passport Copy (valid 6+ months) | Employee |
| Passport-size Photos (white background) | Employee |
| Educational Certificates (for professionals) | Employee |
| Medical Test Result (from approved clinic) | Employee |
| Labor Clearance Certificate | Ministry of Labor |
| Job Offer Letter / Employment Contract | Employer |
| Power of Attorney (if submitted by PRO) | Employer |
Important: All foreign documents must be translated into Arabic and, if required, attested by the embassy and Oman’s Ministry of Foreign Affairs.
Labor Card Costs and Fee Structure (2025)
The cost of a labor card in Oman varies based on job category, company classification, and worker nationality.
| Category | Labor Card Fee (OMR) |
|---|---|
| Skilled workers / professionals | 301 |
| Mid-level workers | 201 |
| Laborers and general staff | 101 |
| Domestic workers / helpers | 141 |
| Additional PRO/service charges | 50–150 (varies) |
Medical test costs are separate and range from OMR 20–40 depending on the clinic.
Some Free Zones and large enterprises may get discounted processing or bulk registration options.
Labor Card Renewal Process
Labor cards in Oman are generally valid for 2 years and must be renewed before expiration to avoid penalties.
Renewal Steps:
Ensure trade license and CR are renewed
Submit updated employee contract and lease (if changed)
Pay renewal fees through the Ministry’s portal
Optional new medical test or biometric update (for expired ID)
Renewal Deadline: At least 30 days before card expiration
Penalty for Late Renewal: OMR 50–500 depending on the duration of delay
Labor Card Cancellation and Transfer
Cancellation
Occurs when:
An employee resigns or is terminated
The contract expires and is not renewed
The business shuts down or exits the activity
Steps to Cancel:
Log into Ministry of Labor portal
Submit cancellation request
Clear PASI and tax records
Return civil ID and cancel visa through ROP
Note: Failure to cancel a labor card can lead to fines or future hiring restrictions.
Transfer to Another Employer
Requires a No Objection Certificate (NOC) from the current employer
New employer must apply for fresh labor clearance
Job titles must match MoL’s approved categories
May involve a cooling-off period or exit-entry cycle
Important: Transfers are only allowed after 2 years of employment unless exceptional approval is granted.
Common Mistakes and How to Avoid Them
| Mistake | Result |
|---|---|
| Applying without valid CR or trade license | Application rejection |
| Incorrect job title or OSIC code | Visa mismatch and labor audit |
| Delayed renewal | Fines and visa blockage |
| Ignoring Omanization ratio | Quota rejection and Ministry penalties |
| Hiring without clearance | Blacklisting, fines up to OMR 2,000 |
Solution: Use a registered PRO or visa consultancy to manage labor card filings and avoid costly setbacks.
PRO Services for Labor Card Processing
Most businesses in Oman work with Public Relations Officers (PROs) or business setup firms to handle labor card applications. They offer:
End-to-end labor clearance filing
Document preparation, translation & notary
Appointment scheduling for medical/biometrics
Renewal tracking and alerts
Employee transfers and cancellations
Top firms like SetupInOman and PI Startup Advisory provide fast-track processing, quota planning, and integration with Visa + CR + PASI + Tax registrations.
Have Any Question?
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
Our Track Record For Delivering Success.
0
+
Happy Customers
0
+
Project completed
0
+
Years Experience
FAQs
Q1: Can I apply for a labor card without a trade license?
No. A valid Commercial Registration and trade license are required before any labor-related applications.
Q2: Is the labor card different from the residence card?
Yes. The labor card is a Ministry of Labor document. After that, the residence card is issued by Royal Oman Police (ROP).
Q3: Can a labor card be processed for part-time workers?
No. Oman does not currently offer part-time labor permits for expatriates under standard business structures.
Q4: What happens if I cancel a labor card but not the visa?
This can result in fines or blacklisting. You must cancel both to complete employee offboarding legally.
Q5: How long does it take to process a labor card?
Typically 7–10 working days, assuming all documents and quotas are in order. Delays can occur if Omanization or job title approval is pending.
Q6: Can a labor card be issued for freelance workers or consultants?
No. Oman requires all foreign workers to be employed under a company with a valid CR and labor clearance. Freelancers must apply under special professional licenses or SPCs (Single Person Companies).
Q7: Do Free Zone companies require labor cards from the Ministry of Labor?
No. Free Zones like Sohar, Salalah, and Duqm issue labor permits through their own authorities, not the Ministry of Labor. However, similar procedures and visa protocols apply.
Q8: What is the minimum salary required for labor card issuance?
There is no fixed national minimum wage for expats, but job title and nationality affect approval. Professionals must meet specific salary thresholds depending on role and classification.
Q9: Can I cancel a labor card online?
Yes. Employers can cancel labor cards via the Ministry of Labor e-services portal, but visa cancellation must be handled separately via Royal Oman Police.
Q10: Can I hold more than one labor card under different employers?
No. Oman’s labor law does not permit dual employment for expatriates. Each expat can hold one active labor card under one employer.
Q11: Is a medical test required for labor card renewal?
In most cases, no. Medical tests are usually only needed during the initial application unless specifically requested during renewal due to health policies or long-term leave.
Q12: What happens if an employee absconds or disappears?
Employers must report absconding cases to the Ministry of Labor. Failure to report can result in fines or inability to hire new expats under the same quota.
Q13: Can labor cards be processed during the probation period?
Yes. Labor cards must be issued before an employee begins work legally, regardless of the probation period. Working without a card is illegal.
Q14: How do I check the status of a labor card application?
You can track the application via the Ministry of Labor portal using your CR number or reference number provided at submission.
Q15: Are there special labor card processes for government project employees?
Yes. Some projects under public sector tenders receive expedited approvals or special labor clearance categories, especially for strategic industries or infrastructure projects.
Get Started with Your Small Business in Oman Today!
Let us handle your company registration, office setup, and licensing to ensure a seamless process.
Sector-Specific Investment Routes to Qualify for Residency
Oman encourages foreign investment across a wide range of sectors. Choosing the right industry can streamline both business approval and residency visa eligibility.
Top Sectors for Investment-Based Residency in 2025:
Tourism & Hospitality: Establish hotels, desert camps, or travel services aligned with Vision 2040 tourism growth.
Logistics & Transportation: Leverage Oman’s location to operate cargo, warehousing, or port services.
Renewable Energy: Solar and wind energy startups receive strong government backing and incentives.
Technology & IT Services: Ideal for app development, SaaS, e-commerce, and fintech.
Education & Training: Open institutes, tutoring centers, or skill development facilities in partnership with local bodies.
Healthcare & Wellness: Clinics, diagnostics labs, and wellness centers are in growing demand.
Each of these sectors has its own licensing pathway, and many qualify for foreign ownership exemptions.
Business Setup in Oman Free Zones vs Mainland for Residency
Residency via business investment is allowed in both mainland Oman and designated free zones, though their benefits differ.
Mainland Oman:
Direct access to local market
Wider sector coverage
Eligible for all visa types
Oman Free Zones (e.g., Duqm, Salalah, Sohar):
0% corporate tax for a limited period
Full repatriation of profits
100% foreign ownership
Dedicated infrastructure and customs benefits
However, not all free zone businesses qualify for long-term residency, so careful planning is required.
Renewal Strategy for Investor Visas
Investor residency visas are typically issued for 2 to 10 years, depending on the investment type and visa class. Here’s how to ensure smooth renewals:
1. Maintain Active Business Operations
Dormant or non-operational companies may lead to rejection.
2. Renew All Business Licenses on Time
Delays in commercial registration (CR) or tax filings can affect visa status.
3. Maintain Minimum Capital & Shareholding
Any drop below the qualifying investment threshold may void your eligibility.
4. Submit Annual Audited Financials
Especially relevant for Golden Visa holders or companies with employees.
Real Estate vs Business Investment: What’s Better for Residency?
Oman allows long-term residency through both real estate ownership and direct business investment.
| Factor | Business Investment | Real Estate Ownership |
|---|---|---|
| Residency Duration | 2–10 years | 5–10 years |
| Eligibility for Employees | Yes (under your company) | No |
| Control Over Operations | Full business ownership | Property only |
| Income Potential | High (profits, contracts) | Rental yield |
👉 For entrepreneurs and job creators, business investment offers more flexibility, while real estate is better for passive investors.
Common Challenges in the Investor Visa Process (and Solutions)
1. Delayed Security Clearance
Solution: Begin documentation early and avoid errors in name/passport submissions.
2. Commercial Activity Restrictions
Solution: Verify sector eligibility with MOCIIP before incorporation.
3. Difficulty Opening Bank Accounts
Solution: Work with local business consultants who can guide you through preferred banking channels.
4. Lack of Office Space
Solution: Consider virtual or co-working options approved by the Ministry.
5. Visa Application Rejection
Solution: Ensure proper translation, attestation, and compliance at each step; consult legal advisors if necessary.
Relocating to Oman: Practical Considerations for New Investors
Relocation involves not only the legal process but also adjusting to life in a new country. Here’s what investors should plan:
Housing: Residential properties are widely available in Muscat, Sohar, and Salalah.
Schooling: Reputed international schools (British, Indian, IB) for expat children.
Transport: Private vehicles are common; taxis and limited public transport in major cities.
Healthcare: Access to private hospitals with expat-friendly services.
Lifestyle: Calm, family-oriented environment with low crime and high quality of life.
Tax Considerations for Residency via Business
While Oman has no personal income tax, businesses are subject to certain obligations:
Corporate Tax: 15% flat rate on profits
VAT: 5% applicable on most goods and services
Withholding Tax: 10% on certain cross-border payments
Foreign investors must register with the Oman Tax Authority and file annual returns. Tax compliance directly impacts visa renewals and business continuity.
Golden Visa vs Standard Investor Visa: Which Should You Choose?
| Feature | Standard Investor Visa | Golden Visa |
|---|---|---|
| Investment Required | OMR 20,000 – OMR 50,000 | OMR 250,000+ |
| Duration | 2–5 years | 5–10 years |
| Fast Track Processing | No | Yes |
| Real Estate Option | Not applicable | Available |
| Access to Government Deals | Limited | Broader participation possible |
If you’re looking to settle long-term with minimal visa renewals and expanded rights, Golden Visa is your best option.
How to Include Employees Under Your Investor Setup
Once your business is operational, you may hire staff and sponsor employee visas under your company:
Steps to Sponsor Employees:
Register your company with the Ministry of Labour
Apply for a Labour Clearance for each job title
Process visas via the Royal Oman Police
Issue contracts and maintain payroll compliance
Ensure annual labor card and insurance renewal
This is a major benefit of investment-based residency, as it allows entrepreneurs to build and scale their team directly.
Mistakes to Avoid in Oman’s Investor Residency Route
Choosing the wrong business structure for your sector
Failing to maintain minimum capital in your corporate account
Attempting to work under a tourist visa while awaiting business formation
Using a PO box as your only registered address
Not translating or notarizing documents as per Omani law
✅ Pro Tip: Work with local specialists to ensure you’re not overlooking any regulatory nuance — especially in sectors like finance, tech, or real estate.
Why Choose Us for the Right Business Structure?
At setupinoman, we specialize in assisting businesses with establishing their presence in Oman. Our services include:
Business Registration & Licensing – Handling all MoCIIP applications and approvals.
Legal Documentation & Compliance – Ensuring smooth document translations and notarization.
Banking & Office Setup – Helping businesses secure bank accounts and office leases.
Visa & Employee Services – Managing work permits and Omanization requirements.
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.
Have Any Question?
Ready to Get Stared?
Fill out our quick and easy contact form below. Briefly tell us about your vision and goals, and we’ll be in touch shortly to discuss a personalized plan for your success.