If you plan to start a business in Asia, Oman is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Oman, and is ready to share its results and help you choose the right jurisdiction.

What are the main advantages of incorporating a company (business) in Oman?

1. Strategic Location for International Trade

Oman enjoys a prime geographical position, serving as a gateway between the Middle East, Africa, and Asia. With access to the Arabian Sea and a well-developed port infrastructure, the country provides seamless entry to global markets. This makes it an ideal hub for companies engaged in import, export, and logistics.

2. Stable Political and Economic Environment

Oman is one of the most stable countries in the Persian Gulf region, offering a favorable business climate for investors. The Sultanate follows a predictable economic policy aimed at attracting foreign investments. With the absence of political turmoil and a stable local currency, entrepreneurs can conduct business with minimal risks.

3. Favorable Tax Regime

Oman boasts a competitive tax system with no personal income tax and relatively low corporate tax rates for most businesses. Additionally, numerous tax incentives are available, especially in Special Economic Zones (SEZs), where companies benefit from exemptions on corporate tax and import duties. This makes Oman an attractive destination for international businesses.

4. Transparent and Sound Legal Framework

The Omani government has established a straightforward and efficient company registration process, allowing entrepreneurs to set up their businesses quickly. The state actively works on modernizing legislation to align with international business standards. This reduces bureaucratic hurdles and creates a welcoming environment for foreign investors.

5. Access to Special Economic Zones (SEZs) and Investment Incentives

Oman hosts several Special Economic Zones, including those in Duqm, Sohar, and Salalah, offering substantial tax and customs benefits for businesses. Companies registered in these zones enjoy advantages such as 100% foreign ownership, simplified import and export procedures, and access to state-of-the-art infrastructure. This makes it an ideal environment for businesses expanding their presence in Middle Eastern markets.

6. Advanced Infrastructure and Business Support

Oman continues to invest heavily in its transportation, energy, and digital infrastructure, significantly enhancing business operations. The country features modern seaports, international airports, high-speed highways, and reliable broadband internet, ensuring smooth business activities across various sectors. Moreover, the Omani government provides support for startups and large corporations through various investment programs and grants.

How to register a company in Oman and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Reservation of company name by filing an application with the Ministry of Commerce and Industry (MOCI);
• Once the company name is approved, the shareholders’ documents and constitution of the company along with the bank certificate and authorized person form must be submitted to MOCI;
• Opening of a capital account and initial incorporation fee into that account upon filing;
• Once you register with MOCI, you must register your business with Oman Chamber of Commerce and Industries to ensure that it complies with all applicable commercial rules.

Step 3. Post registration process

• Registration with Oman Police;
• Tax registration;
• Registration with the Public Authority of Social Insurance;
• Industrial, environmental, and other permits and licenses;
• Registration with the Ministry of Manpower;
• Municipality license;
• Import Export license as appropriate;
• Designing a company seal;
• Employee registration.

Requirements for registering a company in Oman on the example of a Limited Liability Company (LLC):

• Shareholders: 2 shareholders (maximum of 40) where a foreign shareholder can have up to 70% of the shares in the company (except for any individual from the Gulf Cooperation Council (GCC) countries or the USA who can own 100% of the shareholding) and a resident shareholder – 30%.
• Director: minimum of 1 director (can be of any nationality and be a shareholder).
• Company secretary: a Saudi resident company secretary is required.
• Minimum share capital: minimum required share capital to register a company with foreign shareholders is OMR 150,000 (~ €360,000) unless wholly owned by Oman citizens or GCC or Free trade Agreement nationals for whom the initial capital investment requirement is OMR 20,000 (~ €50,000).
• Legal address: a company must have a registered office address.
• Liability: shareholders’ liabilities are limited to their contributions to the share capital.
• Accounting: annual return must be filed.

What do you have to know about taxes when registering a company in Oman?

Corporate income tax (CIT):

• The basic CIT rate is 15%.
• 3% will be applicable if the taxpayer is an Omani corporate entity, has a registered share capital of OMR 50,000 (~ €120,000) or less, has annual revenue of OMR 100,000 (~ €240,000) or less.

Personal income tax (PIT):

There is no PIT in Oman.

Value-added tax (VAT):

• The standard VAT rate is 5%.
• Exempt supplies certain financial services, education services, local passenger transportation services, and renting of residential property etc.

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Oman. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in Oman, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Oman and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.