Business Setup in Oman: Business Rules for Expats

Key Benefits of Business Setup in Oman

Business setup in Oman offers significant advantages to entrepreneurs. Here are some of them:

Golden Visa

According to the Oman Golden Visa program, which was updated in August 2025, those who establish a company with at least OMR 200,000 valued total assets and operating for at least a year can apply for the Golden Visa program and receive a 10-year residence permit.

Investor‑friendly Ownership Rules

According to the Commercial Companies Law (CCL) and the Foreign Capital Investment Law (FCIL), which became effective in 2019 and 2020, foreign investors are allowed to own 100% of an Omani company if their business activity isn’t included in the government’s restricted/negative list.

As an entrepreneur, if you’re establishing a Single Person Company (SPC) or a Limited Liability Company (LLC), Oman doesn’t have any minimum share capital requirements. Additionally, you can found a standard LLC without a local partner.

Investors can choose from different legal forms, such as Single Person Company, Limited Liability Company, Closed and Public Joint Stock Companies, Partnerships, Joint Ventures, and Holding Companies. This helps them establish a company that will have a perfectly aligned form with their business needs.

In addition, companies that are registered in Oman’s free zones can experience a quick incorporation process and more incentives, like simplified procedures and investor-friendly rules.

Taxes and Cost Advantages

Company setup in Oman is a very popular and attractive option for investors, as they experience competitive tax rates.  Oman’s corporate income tax rate is 15%. SMEs that have a maximum OMR 100,000 annual gross income and authorised share capital under OMR 50,000 can apply for a reduced 3% tax. There is no personal income tax in Oman (until 2028). VAT on goods and services is 5%. You can read more about the Oman tax system in our guide.

Also, business registration costs are very low.

And finally, the Oman business setup is very affordable. Here are the main fees:

• Company registration fees: OMR 150-500 ($390-1,300), 
• Business license fees: OMR 100-1,000 ($260-2,600),
• Incorporation fees: OMR 1,000-3,000 ($2,600-7,800), 
• Visa fees: OMR 200-400 per visa ($520-1,040),
• Annual office rental costs: OMR 5,000-15,000 ($13,000-39,000).

Strategic Location

Oman is situated at the crossroads of Asia, Africa, and Europe, which brings many logistical advantages. Its seaports, roads, airports, and 1,700 km coastline are very attractive for investors.

Stability and Supportive Environment

Business setup in Oman has attracted many investors thanks to its political stability and supportive environment. A transparent legal system gives investors confidence. 

Additionally, there are many tax refunds, instalment payment options, and listing fee exemptions for companies that list on the Muscat Stock Exchange.

Types of Business Structures in Oman

Choosing the right structure plays a very important role because it affects ownership limits, capital requirements, and operational flexibility. Here are the main types of business structures in Oman:

Single Person Company (SPC)

An SPC is established by a single individual. There are no minimum share capital requirements. Also, 100% foreign investment is allowed for SPCs. This type is especially preferred by small enterprises and entrepreneurs who want to have full control (yet with a limited liability).

Limited Liability Company (LLC)

An LLC is the most popular among investors who want to establish an Oman company. This type of business requires at least 2 stakeholders (maximum 10). Foreign investors can have 100% ownership if they operate in specific sectors. An LLC doesn’t have a minimum capital requirement for most sectors and doesn’t require a local sponsor. However, for consultancy services, Oman limits the foreign ownership to 70% and requires at least one Omani shareholder.

Joint Stock Companies (SAOC/SAOG)

Joint stock companies are generally preferred by larger enterprises and firms that want to raise capital from the public. Privately Held Joint Stock Companies (SAOC) require at least 3 shareholders, including one Omani shareholder who must hold at least 30% of shares. Public Joint Stock Companies (SAOG) require at least five shareholders and at least OMR 2,000,000 capital. According to the CCL and FCIL, both structures can allow up to 100% foreign ownership. 

Holding Company

A holding company controls subsidiary companies. It needs to be established either as an SAOC or SAOG. The minimum amount of share capital is OMR 200,000. These types of companies are generally used for corporate structures and investment groups.

Partnerships and Joint Ventures

Partnerships can be formed with local individuals or other registered entities, and partners are jointly and severally liable for partnership debts.

In a limited partnership, at least one general partner has unlimited liability, while limited partners are liable only to the extent of their capital contribution.

Branch and Representative Offices

Foreign companies can establish a branch or a representative office in Oman. However, there are some strict rules. A branch is allowed to be opened only to run a project under a government contract or a project considered to be of national economic interest. A representative office can only do market research and promotional activities. It’s not allowed to undertake commercial transactions.

Free‑Zone Companies

Oman has several free zones, such as Sohar Free Trade Zone, Salalah Free Zone, Al Mazunah Free Zone, and the Duqm Special Economic Zone. Here, companies enjoy 100% foreign ownership and long tax holidays. Free zones are highly preferred by companies operating in import/export, logistics, manufacturing, and high‑tech businesses.

Step-by-Step Guide to Company Formation

Company registration in Oman needs several administrative steps. 

Choose a Business Structure

Depending on your business activities, decide which business structure fits you the most. Think about LLC, SPC, joint stock company, branch, representative office, or free‑zone company. Each of these has different ownership, capital, and operational rules.

Reserve a Company Name

Choose a unique company name and reserve it with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP).

Prepare Documents

For this stage, it’s advised to contact a specialized agent who will make sure you don’t miss any important documents. The main documents are:

• Passport copies of shareholders/directors, 
• Preferred company name, 
• Business activity details, 
• Contact information
• Draft Memorandum and Articles of Association

Determine Capital Requirements

Most LLCs and SPCs don’t have any statutory minimum capital. However, some sectors require a minimum capital deposit. 

Draft Memorandum and Articles of Association (MoA/AoA)

Prepare constitutional documents that are about shareholders, share capital, management, and business activities.

Obtain Sector‑specific Approvals and Local Sponsorship (If Required)

Activities like banking, tourism, schools, and hospitals require special licenses. If the activity is still included in the negative list, you may require a local partner.

Lease Commercial Space

Oman requires a physical or virtual office address. So, you need to lease a commercial space and include a document proving that you have an office address.

Submit the Application

Submit the completed application, MoA/AoA, and other required documents to MOCIIP. The company registration may need 7-10 business days, while receiving an investor visa may take 20-30 business days.

Register with the OCCI

After receiving the commercial registration certificate, register your company with the Oman Chamber of Commerce and Industry (OCCI).

Open a Corporate Bank Account

Open a bank account in Oman to deposit share capital (if required) and conduct business transactions.

Obtain Commercial Licences

Based on your activities, apply for relevant business licences from MOCIIP or the free‑zone authority.

Register for Tax and VAT

Register with the Oman Tax Authority. VAT registration is a must if the turnover is more than turnover exceeds OMR 38,500. All companies must acquire a tax card within 30 days of incorporation.

Apply for a Residency Visa

After business registration, apply for investor visas and residence permits. You can book a free consultation with our agency’s experts, who will help you create a personalized path for a business setup in Oman and a residency visa.

Costs of Company Setup

Business setup in Oman comes with the following costs:

• Company registration fees: OMR 150-500 ($390-$1,300) - Paid to MOCIIP for commercial registration.
• Chamber of Commerce registration: OMR 150-300 ($390-$780) - Required to join the OCCI.
• Notarisation and attestation: OMR 50-100 per document ($130-$260) - For MoA/AoA and other legal paperwork.
• Legal and consultancy fees: OMR 500-2,000 ($1,300-$5,200) - For handling documentation and setup support.
• Company incorporation fees: OMR 1,000-3,000 ($2,600-$7,800) - Often provided within consultancy setup packages.
• Business licence fees: OMR 100-1,000 annually ($260-$2,600) - Varies by business activity and mainland vs free zone.
• Office rental: OMR 5,000-15,000 annually ($13,000-$39,000) - Depends on location, office type, and size.
• Employee/visa fees: OMR 200-400 per visa ($520-$1,040) - Includes labour card and resident visa processing.
• free zone licence fees: OMR 2,500-5,000 annually ($6,500-$13,000) - Covers licence + base amenities.
• free zone setup packages: Starting from OMR 1,999 ($5,197) - Typically includes registration, licences, and an investor visa.
• Investor visa: OMR 100-300 ($260-$780) - For company owners; family visas cost OMR 100-150 ($260-$390) each.
• Minimum capital requirement: No minimum for most LLCs/SPCs; SAOC requires OMR 500,000 ($1.3M) and SAOG OMR 2,000,000 ($5.2M).

Taxation and Compliance Rules

Here are some points that you need to consider:

• Oman has a 15% corporate tax. SMEs that meet a specific criterion can benefit from a reduced 3% corporate tax. 
• Free zone companies can enjoy tax holidays for up to 30 years.
• 5% VAT applies to most goods and services. Companies that have at least OMR 38,500 turnover must register for VAT.
• All companies must acquire a tax card within 30 days of incorporation and file annual tax returns. You can read more about the Oman tax system in our guide. 
• Companies must hold an AGM (Annual General Meeting) every year to present audited financial statements and make key decisions.
• LLCs must notify the Ministry of Commerce and Investment about any changes in business address, shareholding, or directors.
• Activities like banking, insurance, tourism, telecommunications, and healthcare require additional licences.
• Employers must contribute 10.5% of each employee’s salary to social security and accident insurance, while employees contribute 8%. Workers receive 30 days of paid annual leave plus public holidays.

Business Incentives and Free Zones

Before finalizing the company registration in Oman, make sure you are acquainted with their business incentives and free zones. Here are some of the most important facts about the free zones:

• Sohar Free Zone focuses on logistics, petrochemicals, and metallurgy. Companies here can enjoy 100% foreign ownership.
• Salalah Free Zone is located near the port of Salalah. It offers long tax holidays and low labour costs.
• Al Mazunah Free Zone provides investors with a duty-free trading environment.
• Duqm Special Economic Zone (SEZ) offers tax exemptions and 100% ownership. Scientific zones and industrial cities also grant tax holidays (15 years for scientific zones and five years for industrial cities) and allow up to 65% foreign employees.
• Similar to other zones, Oman also has a Knowledge Oasis Muscat (KOM), which is a technology park that supports IT, innovation, and research.

Here are some of the most popular government incentives that help attract foreign investments:

• Oman offers a Capital Market Incentive Program (CMIP) that provides corporate tax refunds, allows companies to pay income tax in instalments, and offers listing fee exemptions for private firms that convert to public joint stock companies or list on the Muscat Stock Exchange.
• SMEs that have a maximum OMR 100,000 turnover can apply for the reduced 3% corporate tax rate.
• Some specific sectors receive exemptions on equipment and raw materials, and free‑zone companies are exempt from customs duties.

Challenges and Considerations

As we’ve already mentioned before, Oman has a very attractive environment for investors. However, before a business setup in Oman, investors must be aware of the following challenges:

Negative List and Local Ownership Requirements

It’s true that most of the activities provide 100% foreign ownership. However, some sectors still require an Omani partner or have ownership caps. For example, the government requires consulting firms to have at least one Omani shareholder and limits the foreign ownership to up to 70%.

Proof of Financial Standing

Foreign investors usually must show that their parent company has been incorporated for at least 3 years and provide authenticated articles of association and audited financial statements. New companies without this history may need special dispensation.

Limited Scope for Representative Offices

Representative offices can’t conduct commercial activities and are restricted to marketing and research. Branches can only operate under government contracts.

Dependence on Oil Revenues

Oman’s economy still highly depends on oil prices, so changes in global oil markets can impact government spending and growth. Thanks to the Vision 2040, economic diversification is progressing, but investors should still consider sector-specific risks.