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Welcome to our definitive guide on LLC Company Formation in Oman (also known as company registration in Oman). If you’re considering starting a business in Oman, you’re in the right place. This resource covers everything from the essential legal prerequisites to a step-by-step process of business setup in Oman. Discover the unique opportunities and strategic advantages Oman offers to entrepreneurs and investors, helping you confidently navigate the requirements for establishing your business in Oman.
Oman is a thriving destination for entrepreneurs and businesses looking to expand in the Middle East. Establishing a Limited Liability Company (LLC) is one of the most popular and versatile business structures in Oman. Whether you’re a local investor or a foreign entrepreneur, an LLC provides the flexibility, security, and opportunity to thrive in Oman’s growing economy.
At setupinoman, we specialize in simplifying the LLC Company Formation process, ensuring compliance with local regulations, and delivering efficient, tailored solutions to meet your business needs.
LLC Company Formation in Oman: Steps, Cost, Tax & Types
Our LLC Company Formation Services
Experience seamless LLC formation in Oman with our expert guidance. We handle all aspects of the process, ensuring a swift and successful business launch. We provide end-to-end assistance for LLC formation, ensuring a seamless process. Our services include:
Business Consultation
Guidance on choosing the right business activity and structure.
Assistance in finding local partners if required.
Document Preparation & Submission
Drafting and notarizing the Memorandum of Association (MOA).
Preparing shareholder agreements and other legal documents.
Company Registration
Submission to the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP).
Ensuring compliance with all local regulations.
PRO Services
Assistance with visas, labor cards, and work permits for shareholders and employees.
Post-Formation Support
Bank account opening.
Tax registration and compliance.
Office space recommendations.
Steps to Form an LLC Company in Oman
Here’s a quick overview of the LLC formation process:
Choose a Business Name
Ensure the name complies with Omani naming regulations.
Identify Shareholders & Capital Contribution
Determine the ownership structure and minimum capital requirements.
Draft the Memorandum of Association (MOA)
Outline the company’s objectives, shareholder rights, and management structure.
Submit Documents to MOCIIP
Include the MOA, shareholder IDs, and proof of capital deposit.
Obtain Licenses & Permits
Depending on your business activity, secure additional approvals from relevant authorities.
Register for Taxes
Complete corporate tax registration with the Tax Authority.
Open a Corporate Bank Account
Set up a business account with a local Omani bank.
Why Choose Us for LLC Company Formation in Oman?
Expertise You Can Trust: Our experienced team ensures every step of the process is handled with precision.
Tailored Solutions: We customize our services to fit your unique business requirements.
Transparency & Efficiency: We deliver on time, with clear communication and no hidden costs.
Local Insights: Our deep understanding of Oman’s regulations gives you a competitive edge.
Form LLC Company in Oman: Fast & Easy
Setting up an LLC Company in Oman doesn’t have to be complicated. Let us guide you through the process with expertise and efficiency. Contact us today for a consultation and take the first step toward building your business in Oman.
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 LLC 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.
LLC Company Formation in Oman: Cost Breakdown (2024)
Thinking about forming a company in Oman? Here’s a detailed breakdown of the costs for LLC 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 LLC 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 LLC 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 LLC 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.
Frequently Asked Questions (FAQs)
- What is the minimum capital required to form an LLC company in Oman? The minimum capital varies by business activity. In general, foreign-owned LLCs require a capital of OMR 150,000, while locally-owned LLCs may have lower requirements.
- Can foreigners own 100% of an LLC company in Oman? Foreign investors can own up to 70% of an LLC company. However, specific free zones and strategic sectors may allow 100% foreign ownership.
- How long does it take to form an LLC company in Oman? Typically, the process takes 2-4 weeks, depending on the completeness of your documents and approvals from authorities.
- Do I need an Omani partner to set up an LLC company? Yes, for mainland LLCs company, an Omani partner owning at least 30% of the shares is required. Free zones, however, offer 100% foreign ownership.
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