Oman, strategically positioned at the crossroads of trade routes in both the East and West, is a dynamic player in the Middle Eastern economy. With a robust foundation in oil and gas, which has historically propelled its economic growth, Oman is now expanding beyond these traditional sectors. Guided by its Vision 2040 developmental plan, the country is diversifying into areas such as education, logistics, agriculture, manufacturing, and renewable energy. This shift is creating a multitude of investment opportunities.
There are various legal forms that a company in Oman can take such as Limited Liability Company (LLC), Branch Office, Representative Office, Sole Establishment, Partnerships, Joint Stock Company, Holding Company, Free Zones and Commercial Agent (Exclusive Distributor). An LLC is the most common vehicle for setting up in Oman as a foreign investor and is often the only choice for many business activities. Many company types can now be 100% foreign owned due to an update in legislation in January of 2020.
Setting up a business in Oman involves a clear and structured process. Initially, businesses must register with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP), where they obtain the necessary trade name and complete the business registration formalities. This includes choosing the appropriate legal form for the company.
Following registration, businesses must obtain the relevant licences from various governmental bodies, depending on the business activity and sector. For instance, manufacturing companies may require additional approvals from environmental and health safety authorities.
Additionally, for specific sectors such as logistics, telecommunications, and healthcare, companies must navigate through specific procedural steps that involve feasibility studies, preliminary approvals, and sector-specific licences.
The incorporation process can be complicated in Oman and it is important that you get it right from the start. Sovereign PPG understand that entering and developing new markets is challenging and we are there to help alleviate some of these challenges and equip your business with the resources needed to make entry into Oman seamless and efficient.
Compliance with Oman’s legal framework is critical throughout the process. Businesses must adhere to labour laws, which govern employment contracts and worker rights, as well as tax regulations, which include adhering to VAT implementation and corporate tax obligations. Ensuring compliance from the start not only facilitates smoother operations but also establishes the legal foundation necessary for successful business activity in Oman.
Oman’s economic stability and modern trading system makes the county an attractive hub, specifically for logistics and trade in the Middle East. Economic diversification is a key goal of the Oman Vision 2040 programme which will continue to offer more opportunities to foreign investors in the Sultanate.
The country has designated three different free zones dedicated to specific industries as well as two special economic zones designed to ease the process of establishing a new business and encourage foreign investment.
These jurisdictions offer incentives such as 100% foreign ownership, significant tax exemptions ranging from 25 to 30 years, and simplified customs procedures, as well as exemptions from minimum capital requirements, flexibility in the repatriation of capital and profits, and streamlined "one-stop shop" services for all relevant clearances.
Sovereign PPG offer essential visa, PRO and corporate services in Oman to assist clients with the initial company setup in Oman and all business, employment, family, residence and student visa requirements. We have a strong PRO/ Government Liaison team on the ground in Oman to assist with obtaining visas.
Sovereign PPG is here to simply and streamline the time-consuming PRO and visa application processes.
Within one year of beginning commercial operations, the Omani employee must be registered...
From 1st July 2020 all companies in Oman must apply for an obtain a tax card.
Liquidation of a company and deregistering with the local authorities and liquidator
Yes, there are requirements in place to have a percentage of employees in the private sectors be Omani. Free Zones tend to have lower Omanisation rates.
Yes. 100% foreign ownership is available in Oman.
The Gulf Cooperation Council (GCC) have established a customs union by which imported goods from outside of the GCC regions are subjected to 5% customs duty.
To form an LLC company in Oman a minimum share capital of OMR 150,000 is required.
Yes. The corporate tax rate in Oman is 12% applicable to all companies with profits over OMR 30,000.
Provided we receive all the right documentation, the process typically takes between 10-12 days.
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