Oman has been steadily emerging as a business-friendly destination in the Gulf region, offering attractive investment opportunities, a stable political climate, and a strategic location between Asia, Africa, and Europe. For expats and foreign investors looking to expand or establish a new business in the Middle East, Oman provides a welcoming environment backed by progressive reforms and incentives.

But like any new market, understanding the legal and administrative framework is essential. This guide breaks down the process of company registration in Oman, legal requirements, the types of entities available to foreigners, and what you should consider before launching your business in the Sultanate.

Why Set Up a Business in Oman?

Before diving into the steps, here’s why Oman has become increasingly popular among international entrepreneurs:

• 100% Foreign Ownership in many sectors (following 2020 investment law reforms)

• No personal income tax

• Stable and diversified economy

• Access to GCC and global markets

• Free trade agreements with countries like the USA and Singapore

• Government support for industrial, tourism, tech, and logistics sectors

Whether you’re a freelancer, small business owner, or corporate investor, Oman provides a streamlined path for doing business — especially if you understand the legal routes available.

Can Foreigners Own a Business in Oman?

Yes. With the introduction of Royal Decree 50/2019, Oman now allows 100% foreign ownership of companies in many industries without the need for a local Omani sponsor.

This has made the process of company registration in Oman significantly easier and more attractive to international investors. However, there are still some sectors where local partnership is required, particularly in strategic or restricted industries (e.g., defense, oil exploration, or certain retail categories).

To benefit from full ownership, foreign investors must comply with specific capital requirements and obtain approval from the Ministry of Commerce, Industry and Investment Promotion (MOCIIP).

Legal Entity Types Available for Foreigners

Before starting your business, you’ll need to choose a legal structure. The most common business types for expats and foreign investors in Oman include:

1. Limited Liability Company (LLC)

The most popular and flexible legal structure for small to medium-sized businesses.

• Requires at least one shareholder

• Can now be 100% foreign-owned (in permitted sectors)

• Requires a minimum capital (varies by activity)

• Liability is limited to the company’s share capital

2. Branch Office

Ideal for international companies wanting to operate directly in Oman without forming a new entity.

• No separate legal identity from the parent company

• Must have a government contract or special approval

• Suitable for short-term projects or representation

3. Representative Office

This structure allows a company to promote its business in Oman but not engage in direct commercial activity.

• No revenue-generating activities allowed

• Mainly used for market research or networking

4. Sole Proprietorship (For GCC Nationals Only)

Sole proprietorships are generally not available to non-GCC expats unless in partnership with an Omani national.

Step-by-Step Guide to Company Registration in Oman

The process of company registration in Oman is structured but accessible, especially if you’re well-prepared. Here are the steps most foreign investors will follow:

Step 1: Choose Your Business Activity

Identify the specific business activity you intend to undertake. Oman has a predefined list of permissible activities, and the nature of your business will determine:

• License type (commercial, industrial, professional)

• Required capital

• Approval from relevant authorities

Some sectors (e.g., healthcare, education, telecom) require additional permits from line ministries.

Step 2: Reserve a Company Name

Your business must have a unique name that is approved by MOCIIP. It should:

• Reflect the nature of the business

• Not conflict with existing company names

• Comply with Omani naming regulations

Once approved, the name is reserved for a limited time during the setup process.

Step 3: Draft the Memorandum of Association (MOA)

This legal document outlines:

• Shareholding structure

• Capital contribution

• Business scope

• Company governance

It must be signed by all shareholders and notarized through the government e-signature portal or with a public notary in Oman.

Step 4: Deposit Minimum Capital

Depending on the business activity and ownership structure, foreign-owned LLCs may need to deposit a minimum capital (e.g., OMR 150,000 for 100% foreign ownership in certain sectors). This is deposited into a corporate bank account in Oman and proof of deposit is submitted during registration.

Step 5: Submit Application to MOCIIP

You’ll need to file the incorporation documents through the Invest Easy portal or at MOCIIP’s physical offices. Required documents typically include:

• Passport copies of all shareholders

• MOA and Articles of Association

• Proof of capital deposit

• Lease agreement for office space

• Company name approval

• Any sector-specific approvals

Upon approval, you’ll receive your Commercial Registration (CR) certificate.

Step 6: Obtain Licenses and Permits

Depending on the business type, you may need further approvals or operational licenses from:

• Municipal authorities

• Ministry of Manpower (for hiring staff)

• Sector regulators (e.g., CBO, Ministry of Health, etc.)

You will also need to register with:

• Tax Authority

• Oman Chamber of Commerce and Industry (OCCI)

• Social Insurance Authority (if hiring Omani employees)

Step 7: Open a Corporate Bank Account

Once your company is officially registered, you can open a business account with a local Omani bank. Requirements include:

• Commercial Registration certificate

• Shareholder IDs and signatures

• Board resolution (if applicable)

Cost of Company Registration in Oman

The cost of setting up a business in Oman depends on the legal structure, business activity, and whether you’re eligible for 100% foreign ownership.

Typical costs include:

Always consult a local business advisor or legal expert for updated and accurate pricing based on your industry.

Taxation and Incentives in Oman

One of the biggest advantages of company registration in Oman is its relatively low tax burden:

• Corporate tax: Flat rate of 15% on net profits

• No personal income tax

• No capital gains tax (in most cases)

• No withholding tax on dividends (if applicable DTA exists)

• Tax exemptions available for companies operating in free zones or strategic sectors

Free Zones in Oman

Foreign investors can also explore Oman’s free zones, which offer added benefits such as:

• 100% foreign ownership

• 0% customs duties

• 0% corporate tax for up to 30 years

• Repatriation of capital and profits

Major free zones include:

• Salalah Free Zone – logistics, manufacturing, trading

• Sohar Free Zone – heavy industries, petrochemicals

• Duqm Special Economic Zone – mega infrastructure and industrial projects

• Knowledge Oasis Muscat (KOM) – tech startups, innovation, ICT companies

Final Thoughts

Oman is an increasingly attractive destination for expat entrepreneurs and global investors. With its investor-friendly reforms, relaxed ownership rules, and competitive tax regime, the Sultanate provides a secure and profitable environment for new businesses.

While the company registration in Oman process may seem complex at first, the country has made significant strides in streamlining it through digital portals and regulatory transparency. With proper planning, legal advice, and local understanding, you can set up and scale your business in one of the Gulf’s most promising markets.