Company Formation in Oman
Last updated: November 2026
Company registration in Oman runs online on the Oman Business Platform, the portal formerly called Invest Easy. Since January 2020, the Foreign Capital Investment Law (Royal Decree 50/2019) lets a foreign investor own 100% of an onshore company in most activities. The usual vehicles, the limited liability company (LLC) and the single person company (SPC), need no statutory minimum capital.
Our company formation services in Oman run from the activity check to the bank introduction. We choose the structure, test the activity against the negative list and file the licence and Commercial Registration. Then we handle Chamber membership, tax registration and the beneficial owner register.
| Quick facts | Value |
|---|---|
| Local company form | LLC (al-Sharika Mahdudat al-Mas'uliya, limited liability company), equivalent of an LLC / private limited company |
| Single-owner form | SPC (Sharikat al-Shakhs al-Wahid) |
| Foreign ownership | 100% in most activities; 123 activities closed (MD 435/2024) |
| Minimum share capital | None for an LLC or SPC; OMR 500,000 for an SAOC |
| Registration portal | Oman Business Platform (formerly Invest Easy) |
| Registry | Commercial Register of MOCIIP |
| Registration time | About 1 week to 10 working days (complete file) |
| Corporate income tax | 15%; 3% for qualifying small companies |
| VAT | 5% |
| Omani staff | At least one Omani employee after year one |
Why Form a Company in Oman
Business setup in Oman changed in January 2020, when the Omani partner model ended for most activities.
Full foreign ownership. Outside the negative list, a foreign investor can hold 100% of the capital and may transfer returns abroad freely (FCIL art. 26).
Online registration. Identity is checked by facial recognition, and MOCIIP states that registration needs no visit, lawyer or notary.
Simple taxes. Corporate income tax is 15% and VAT 5%. Withholding tax on dividends and interest has been suspended since January 2023.
Zone incentives. Most new projects in the free zones and special economic zones get a 10-year income tax exemption (RD 38/2025).
There are trade-offs. A foreign-invested company must employ at least one Omani after its first year of activity (MD 411/2025), and some banks want non-resident owners in person. Compare UAE company formation, Saudi Arabia, Qatar and Bahrain on the same points.
Company Types Available in Oman
The Commercial Companies Law (Royal Decree 18/2019) allows seven forms (art. 4), and a company trading in any other form is void (art. 5). A foreign company can instead register a branch (art. 13), usually tied to an Omani government contract.
| Form | Arabic name | Owners | Statutory minimum capital |
|---|---|---|---|
| LLC | al-Sharika Mahdudat al-Mas'uliya | 2 to 50 | None |
| SPC | Sharikat al-Shakhs al-Wahid | 1 | None |
| SAOC (closed joint stock) | Sharikat al-Musahama | At least 3 | OMR 500,000 |
Limited Liability Company (LLC)
The limited liability company (LLC), al-Sharika Mahdudat al-Mas'uliya, is the Omani private limited company for 2 to 50 natural or legal persons (art. 234). It needs no board. For LLC company formation in Oman, the founders sign the constitutive contract from the online template and pay up the shares on registration. Since 14 July 2025, the signatories shown on the Commercial Registration (CR) must be partners, the capital owner, board members, the manager or financial or administrative employees (MD 245/2025). Our minimum share capital comparison sets Oman against other countries.
Single Person Company (SPC)
A natural person may hold only one SPC, and an SPC may not found another. The owner becomes personally liable if company and personal affairs are mixed (art. 296).
What does SPC mean?
SPC stands for single person company, Sharikat al-Shakhs al-Wahid in Arabic. It is an Omani LLC wholly owned by one natural or legal person under art. 291 of the Commercial Companies Law. In practice it works as a single-owner private limited company, for a sole founder or a parent company that wants no second shareholder.
Joint Stock and Holding Companies
A joint stock company (Sharikat al-Musahama) is closed (SAOC) or public (SAOG) and needs at least 3 shareholders (art. 89). An SAOC board has 3 to 11 members, an odd number, with no nationality or residency requirement. A holding company (al-Sharika al-Qabida) takes joint stock form or converts from an LLC (art. 229), with minimum capital of OMR 2,000,000 (art. 230).
Foreign Ownership Rules in Oman: The Foreign Capital Investment Law
Foreign direct investment in Oman runs only under the Foreign Capital Investment Law (FCIL), Royal Decree 50/2019 (art. 3), in force since January 2020. It repealed RD 102/94. The investor may own the capital in whole or in part, with a licence from MOCIIP's Investment Services Centre (art. 6). The FCIL does not override the GCC investment rules, the Duqm zone, Madayn estates or the free zones (art. 2). Our foreign ownership and director requirements table compares Oman with other jurisdictions.
Activities Closed to Foreign Investors
The negative list of FCIL art. 14 reached 123 activities in three steps; MD 435/2024 is the latest amendment we found.
| Decision | In force | Change | Examples |
|---|---|---|---|
| MD 209/2020 | 14 December 2020 | 70 activities; existing projects grandfathered | Omani halwa, tailoring, laundry and hairdressing outside tourist establishments, car wash, driving schools |
| MD 364/2023 | 19 June 2023 | 2 removed, 27 added (95) | Buying, selling and subdividing real estate, property management, marine fishing |
| MD 435/2024 | 2 September 2024 | 28 added (96 to 123) | Grocery stores, used vehicle sales, mobile cafés, skin care, handicrafts |
Companies wholly owned by Omani, GCC or US nationals may carry on listed activities, and sector regulators may set their own caps. We check your activity code against the current list before filing.
Company Registration in Oman for Expats
In October 2024, MOCIIP suspended foreign investment licence applications from expatriates in limited-skill jobs, Gulf News reported. We check whether that still covers your job category.
How to Register a Company in Oman: Step by Step
The Ministry of Commerce, Industry and Investment Promotion (MOCIIP) keeps the Commercial Register, Oman's company registry, under RD 3/74. Its Investment Services Centre, with the Invest in Oman Lounge, issues foreign investment licences (MD 361/2023). As your formation agent, we prepare and file each step after your identity check.
- Activity check. We test the activity against the negative list, the licence simulator and the licence-free list.
- Account and KYC. You open a platform account and pass the identity check by facial recognition. Since November 2023, no Omani PKI card is needed.
- Form and name. We fix the legal form and trade name. Name reservation now happens inside the CR application.
- Documents. We upload passports, the constitutive contract and proof of address or a lease. Foreign investors may need a security clearance.
- Foreign investment licence. The file includes a feasibility study (MD 72/2020 art. 8). Other bodies decide within 14 working days, silence counting as approval, and the licence follows within 3 working days (arts. 11 and 12).
- Commercial Registration. After the government fees are paid online, MOCIIP issues the CR electronically. A printed PDF is valid.
- After the CR. Chamber membership, tax registration, licences, the labour file and the bank account follow.
Invest Easy or Oman Business Platform?
They are one portal under two names. Invest Easy was rebranded and upgraded as the Oman Business Platform in November 2023. MOCIIP itself says Invest Easy evolved into the Oman Business portal. The site still uses the /ieasy/ path and an Invest Easy Call Center.
What is a CR in Oman?
A CR is the Commercial Registration: the company's entry in the Commercial Register and its certificate. Banks ask for it, and every CR holder must register for income tax.
Business Licences After the CR
Chamber of Commerce and Industry membership is compulsory for anyone trading (RD 56/2022 art. 10) and is decided within 3 working days. The premises need a municipal licence, renewed annually. Telecoms, education, defence and oil and gas need separate sector licences.
Required Documents for Company Registration in Oman
The usual list is short:
- Passports of the shareholders and managers
- Proof of address, or a lease for the place of activity
- Constitutive contract or articles, from the online templates
- Feasibility study and investor details for the licence, plus a business plan where asked
- Written consent of a manager who is not a partner (MD 245/2025)
- For a corporate shareholder: certificate of incorporation, constitution and resolutions, apostilled or legalised at home
The Hague Apostille Convention has been in force for Oman since 30 January 2012, so documents from member states can carry an apostille instead of legalisation.
Timeline and What Our Package Covers
Company formation in Oman is quick once the file is complete: MOCIIP estimates about 1 week to 10 working days. Licence approvals and Chamber membership follow the statutory clocks in the steps above.
Our package covers the activity check, the choice of form, the constitutive contract, the licence and CR filings, Chamber membership, tax registration, the beneficial owner register and the bank introduction. The total depends on the form, the activity and its approvals, the shareholders, the premises, the zone or mainland route and the visas. Government fees are paid on the platform. Send your plan through our contact form for a written quote, or see our formation time table.
Tax Overview for Omani Companies
Corporate income tax is 15% (rate applicable in 2026) for companies, branches and permanent establishments; petroleum income is taxed at 55%. Every CR holder registers on the Oman Tax Authority portal and notifies its data within 60 days of incorporation. Our corporate tax rates by country table compares the 15% rate.
| Tax | Rate or rule |
|---|---|
| Corporate income tax | 15% |
| Small company regime | 3%, if every condition is met |
| VAT | 5%; mandatory registration above OMR 38,500 of annual supplies, voluntary at OMR 19,250 |
| Withholding tax | 10% on royalties, management fees, software and services paid to foreign persons without an Omani permanent establishment |
| Dividends and interest | Withholding suspended since 11 January 2023 |
| Domestic top-up tax (Pillar Two) | 15% for groups with revenue of EUR 750 million or more, for tax years from 1 January 2025 (RD 70/2024 as amended by RD 101/2026) |
| Personal income tax | 5% on annual income above OMR 42,000, from 1 January 2028 |
| Tax treaties | 44 double tax agreements |
The 3% Regime for Small Companies
Part Five bis of the Income Tax Law, added by RD 9/2017, sets the 3% rate. As written, the regime covers Omani companies in LLC or partnership form, and any company formed under Omani law counts as Omani, whatever the owners' nationality. The Tax Authority's conditions apply all at once: registered capital up to OMR 60,000, annual gross income up to OMR 150,000, up to 25 workers and no professional activity. Air and sea transport, banking, insurance and finance, natural resources and public utility concessions are excluded. Filers have 3 months and attach no audited accounts to the return, though CCL art. 278 can still require an auditor. Eligibility is checked per case.
Free Zones and Special Economic Zones in Oman
OPAZ, the zones authority (RD 105/2020), oversees the Special Economic Zone at Duqm and the Al Mazunah, Salalah and Sohar free zones.
The 2025 Zones Law
RD 38/2025, in force since 14 April 2025, allows 100% foreign ownership (art. 8) and lets the OPAZ board waive minimum capital (art. 9). A new project gets a 10-year income tax exemption, extendable twice for special activities, except banks, insurers, telecoms, contractors and transport (art. 27). Executive Regulation 81/2026 adds a one-stop shop and automatic licensing.
Duqm, Sohar, Salalah and Al Mazunah
| Zone | Legal basis | Terms published by OPAZ |
|---|---|---|
| SEZ Duqm | RD 119/2011, 2,000 sq km | No minimum capital, tax exemption up to 30 years, usufruct up to 50 years |
| Sohar Freezone | RD 123/2010 | Tax holiday up to 25 years, 0% import duty, relaxed Omanisation |
| Salalah Free Zone | RD 62/2006 | No minimum capital, no profit tax for 30 years, no customs duties |
| Al Mazunah Free Zone | 1999, run by Madayn | 30-year tax exemption, outside the Commercial Agencies Law, Omanisation of 20% |
The 25 and 30-year figures reflect older regimes kept for existing enterprises. New projects get 10 years, and groups with revenue of EUR 750 million or more pay the top-up tax regardless (RD 101/2026 art. 3 bis).
Zone or Mainland?
On the mainland, the FCIL licence and the negative list apply; inside a zone, the zone law governs (FCIL art. 2). In a zone, the total depends on the zone, the premises, the activity and the visas. We quote both routes side by side. For a Dubai comparison, see our guide to business setup in Dubai.
Visas and Work Permits
A CR gives no residence: investor residence has separate conditions, and the Royal Oman Police issues visas through its eVisa system. MOCIIP's Golden Residency runs 10 years. Routes include starting or investing in a business, tourism-zone property, bonds or listed shares, a fixed deposit or employing 50 or more Omanis.
Omanisation and Hiring Staff
Under the Labour Law (RD 53/2023), a foreign worker's permit is issued only if no qualified Omani is available and the Omanisation plan is met (art. 27). Ministerial decisions set sector quotas and reserve some jobs for Omanis (arts. 23 and 30). Since 6 October 2025, a foreign-invested company must employ at least one Omani after its first year, registered with the Social Protection Fund (MD 411/2025). Zone work permits come within 5 working days, silence counting as approval (RD 38/2025 art. 13).
Banking for Omani Companies
The Central Bank of Oman regulates the banks. A bank asks for the CR, the memorandum, the shareholders' IDs and the tax card. Opening usually takes a few days, but some banks require personal attendance or longer checks for non-resident shareholders or managers. Where capital is OMR 50,000 or more, the CR shows "Capital not checked" until a bank certificate is filed. Trading through an account outside the company's name signals concealed trading (MD 412/2023 art. 6). Our bank account opening service prepares the introduction.
Compliance and Reporting Obligations
Filings go to the Oman Business Platform and the Oman Tax Authority. Our accounting and tax compliance service runs both calendars.
| Obligation | Where | Deadline or rule |
|---|---|---|
| Annual Report | Oman Business Platform | Within 6 months of year end, for every CR |
| Income tax return | Oman Tax Authority | Within 4 months of year end with audited accounts; 3 months at the 3% rate |
| E-invoicing | Oman Tax Authority | From 1 April 2027 above OMR 5 million of annual supplies; from 1 October 2027 for others |
| Annual general meeting (LLC) | Company | Within 180 days of year end |
| Legal reserve | Company | 10% of profit until it reaches one third of capital |
| Beneficial owner register | Company | Owners of 25% or more; changes within 5 working days; kept 10 years |
| Renewals | MOCIIP, Chamber, municipality | CR, Chamber membership and municipal licence |
An LLC needs an auditor above 7 partners or OMR 50,000 of capital (CCL art. 278), or when its articles or holders of one fifth of the capital require one. A company taxed at 15% files audited accounts with its return in any case. Every company except an SAOG keeps the beneficial owner register (MD 424/2023) and names an Oman-resident natural person to coordinate that data.
Concealed Trading and Nominee Arrangements
Fronting is prohibited. MD 412/2023, in force since 28 October 2023, bans helping a person practise an activity the law does not allow him. Sanctions include strike-off, escalating fines, a 3-month suspension and a one-year re-registration bar (art. 10), and FCIL art. 33 adds criminal fines. We found no Omani provision that recognises nominee shareholders or directors, and a nominee structure for a closed activity is concealed trading under MD 412/2023 and FCIL art. 33. We do not offer nominee services in Oman.
Forming an Omani Company as a Non-Resident
A non-resident can own 100% of an Omani LLC or SPC outside the negative list, under a foreign investment licence. The Commercial Companies Law, as we read it, sets no residency rule for LLC managers, so a non-resident can also manage the company. One role must go to an Oman resident: the natural person who coordinates beneficial owner data (MD 424/2023 art. 5).
A non-resident individual supplies a passport and proof of address; a corporate shareholder adds legalised or apostilled company documents. Registration needs no visit, because the Oman Business Platform checks identity by facial recognition. Banking is the step to plan. Some banks want non-resident shareholders or managers in person, or run longer checks. A CR gives no residence, so investors who move to Oman apply separately for investor residence, or for the Golden Residency where the investment qualifies.
Frequently Asked Questions
Can a foreigner own 100% of a company in Oman?
Yes, in most activities. Since January 2020, the Foreign Capital Investment Law lets a foreign investor own the whole capital of an LLC or SPC, with a MOCIIP licence and no Omani partner. The 123 activities on the negative list, such as grocery stores and real estate trading, stay closed unless the company is wholly owned by Omani, GCC or US nationals.
How do I start a business in Oman as a foreigner?
Check the activity against the negative list, open an Oman Business Platform account and pass the remote identity check. Then choose an LLC or SPC, upload the documents and apply for the foreign investment licence. MOCIIP issues the CR electronically, and Chamber membership, tax registration and the bank account follow.
How long does company registration in Oman take?
About 1 week to 10 working days once the file is complete, according to MOCIIP. Where other bodies must approve the activity, they decide within 14 working days, and silence counts as approval. The foreign investment licence then follows within 3 working days.
What is the minimum capital for an LLC in Oman?
None by statute: the capital is whatever the constitutive contract states (CCL art. 238), paid up on registration. In practice, MOCIIP expects it to cover early operations, often about 12 months of costs. A closed joint stock company (SAOC) needs OMR 500,000.
What does the total for company registration in Oman depend on?
It depends on the legal form, the activity and its approvals, and the number and type of shareholders, since corporate shareholders need apostilled or legalised documents. Premises add a lease and a municipal licence renewed every year. Visas and the mainland or zone choice also count. We quote each case in writing.
What business can a foreigner open in Oman?
Any activity outside the FCIL negative list, subject to its licences. The list closes 123 activities, including grocery stores, used vehicle sales, mobile cafés, car washes and driving schools. Many other activities are licence-free, and qualifying zone projects get a 10-year income tax exemption.
How do I start a small business in Oman?
Start with an SPC for a sole founder or an LLC for 2 to 50 founders; neither needs minimum capital. Check the activity against the negative list, which closes small trades such as grocery stores and car washes. Registration runs online with no visit. After its first year of activity, a foreign-invested company must employ at least one Omani (MD 411/2025).
Get Started: Form Your Omani Company
Send us the activity, the shareholders and where you want to operate. We check the activity against the current negative list first, then file the registration on the Oman Business Platform and the tax registration with the Oman Tax Authority. You get a written quote.
Call +48 2222 5 2222 or email info@companyformation24.com to start.
Content prepared by Aleksandra Kowalska, Corporate Client Service. Approved by Tomasz Bielski, Managing Director.
