Setting up a company in Oman

01Five settings for a foreign company

A foreign company operates in Oman in one of five settings. A zone company cannot trade onshore.

02Foreign ownership

The Foreign Capital Investment Law allows 100% foreign ownership of Omani companies in all activities except those on the negative list. The list reserves 123 activities for Omanis.

Article 6 of the law provides that foreign investment is carried out by a company in a permitted activity by owning the invested foreign capital in whole or by contributing to it, under a licence from the investment services centre.

• The Foreign Capital Investment Law (Royal Decree 50/2019) came into force on 1 January 2020. It replaced Royal Decree 102/1994.
• Ministerial Decision 209/2020, as amended, sets the negative list. In September 2024 the Ministry added 28 activities, bringing the total reserved for Omanis to 123.
• Examples of reserved activities are handicrafts, grocery stores, used vehicle sales, mobile cafés, LPG filling stations, labour recruitment offices, translation, tailoring, vehicle repair and taxi operation.

Investment licence

• A foreign investor needs an investment licence before starting.
• The competent authority decides within 14 working days and silence counts as approval (Ministerial Decision 72/2020).

Sector rules

• Some sectors carry their own ownership rules outside the negative list.
• Engineering consultancy offices need at least 35% Omani ownership.
• Commercial agency activity is an exception to full foreign ownership.
• US-owned companies have extra rights under the US-Oman Free Trade Agreement.

Local partner or agent

None is required for a permitted activity.

Omani employee

A foreign-owned company must employ at least one Omani once its commercial registration is one year old (MOCIIP Decision 411/2025, dated 2 October 2025). Existing foreign-owned companies past one year have six months to regularise.

Penalties

• Investing outside the Foreign Capital Investment Law rules carries a fine of OMR 20,000 to 150,000.
• Concealed trading carries a fine of OMR 5,000 to 15,000 under Ministerial Decision 412/2023.

03Legal forms and capital

The Commercial Companies Law (Royal Decree 18/2019) provides the forms. A limited liability company and a single person company have no fixed minimum capital.

• The Foreign Capital Investment Law removed the minimum capital requirement for foreign investors from January 2020. Some authorities ask for a bank certificate of deposited capital.
• All capital must be paid up at incorporation. Capital must cover start-up costs and about 12 months of operation.
• The LLC constitutive contract must be in Arabic, with a translation allowed.
• A branch is not a separate legal entity. The parent is fully liable.

04Licences and authorities

MOCIIP issues the commercial registration and the foreign investment licence. Several other bodies register or license the company.

• MOCIIP: issues the commercial registration. It also issues the foreign investment licence under the Foreign Capital Investment Law. Foreign-owned entities file through its investment services centre.
• Oman Chamber of Commerce and Industry (OCCI): registers every company.
• Municipalities: issue the premises licence and need a tenancy agreement. The licence is renewed every year.
• Oman Tax Authority: issues the tax identification number.
• Sector regulators: license regulated activities. These include banking and finance, tourism, telecommunications, manufacturing, food and beverage, schools, hospitals and employment agencies.
• Ministry of Labour: issues work permits.
• Zone authorities: license zone entities. Under the SEZ executive regulation a zone licence lasts 3 years and is renewable. The authority decides within 7 working days and silence counts as acceptance.

05Steps, timing and fees

Setting up a mainland LLC takes seven steps. Total time is about 7 to 14 days.

1. Choose a permitted activity and reserve the trade name on the Oman Business platform. This takes 1 to 2 working days.
2. Upload the constitutive documents. Foreign investors verify identity remotely. Some cases need a security check of 1 to 3 days.
3. Receive the electronic commercial registration certificate and register with OCCI.
4. Obtain the municipal licence and any sector licence.
5. Register with the Oman Tax Authority for a tax identification number.
6. Open a corporate bank account and arrange the registered office.
7. Register employees with the Ministry of Labour and the Social Protection Fund.

Timing and fees

• A branch takes about one week to 14 days.
• Government fees are OMR 50 to 150 for a standard LLC. They cover registration, chamber and municipal fees.
• A small company's total mandatory costs are about OMR 200 to 300.
• Foreign investors who employ at least one Omani pay commercial registration fees at the Omani rate.
• A lawyer or notary is not legally required.

Documents for a branch

• Parent company documents must be notarised, legalised or apostilled.
• The parent issues a letter of undertaking.

06Free zones and special economic zones

Royal Decree 38/2025 sets one framework for all zones under the Public Authority for Special Economic Zones and Free Zones (OPAZ). The income tax exemption runs 10 years, renewable twice for qualifying activities.

Royal Decree 38/2025 was issued on 7 April 2025 and came into force on 8 April 2025. The executive regulation (OPAZ Decision 81/2026) was published in the Official Gazette on 20 September 2026 and took effect on 21 September 2026.

Benefits and rules

• Ownership: new entities in zones get 100% foreign ownership.
• Minimum capital: Duqm sets no minimum capital for a local company or a foreign branch. Salalah sets no minimum capital investment. Al Mazunah exempts investors from a minimum investment requirement.
• Income tax exemption: 10 years from the start of activity, renewable for two further 10-year periods for activities of a special nature, up to 30 years.
• Special-nature activities: heavy manufacturing, green industry and green hydrogen, port logistics, advanced technology, data centres and AI, strategic infrastructure, food security, pharmaceuticals, biotech and recycling.
• Other qualifying activities: administrative offices, commercial representation and import-export qualify if they add value to the national economy. Service providers qualify if their contract has at least 15 months left at application.
• Excluded from the exemption: banks and financial institutions, insurance, telecommunications services, contracting companies, and road or maritime transport.
• Filing duties: exempt enterprises still file income tax returns, keep audited accounts and keep records for 10 years.
• Customs duty: exempt on goods imported or exported through the zone.
• Strategic enterprises: they invest at least OMR 10 million, unless the board waives this, and meet at least one further criterion such as technology transfer, local content or exports. They can obtain a lease exemption of up to 10 years, an Omanisation exemption of up to 4 years and fee exemptions.
• Omanisation: zone operators meet Omanisation targets and report workforce data.
• Existing entities: existing exemptions stay valid until they expire. Existing entities have six months from 21 September 2026 (to 21 March 2027) to align with the regulation.
• Onshore trade: zone entities cannot trade onshore.

Sohar and Salalah

• Both zones operate a one-stop shop and offer 100% foreign ownership, no customs duty on imports or exports and no personal income tax.
• Salalah sets no minimum capital and no restriction on capital movement abroad.
• Both zones list free trade agreements with the United States and Singapore.
• Application has three steps. The investor submits a request with supporting documents. The zone notifies the investor when a plot is allocated. The investor then signs a usufruct (land use) agreement.

07Bank accounts

A company opens a corporate account with a licensed Omani bank after registration. The account is opened once the commercial registration certificate and the tax identification number have been issued.

• Corporate accounts follow Central Bank of Oman anti-money-laundering rules.
• In the MOCIIP registration sequence the account is opened after the commercial registration certificate and the tax identification number are in place. Opening takes a few days.
• Some authorities also ask for a certificate from an Omani bank showing that the capital has been deposited.
• A foreign company cannot open the account before registration.

08Accounting, audit and reporting

Companies keep IFRS accounts audited by an Omani-licensed auditor. An LLC holds its annual general meeting within 180 days of year end.

• Accounting standard: financial statements follow IFRS unless the Tax Authority grants a dispensation. Records are kept in rials unless dispensation is granted.
• Audit: an Omani-licensed auditor audits the statements. Audited statements go to shareholders before the annual general meeting. SAOCs and SAOGs also file them with MOCIIP or the Financial Services Authority.
• Annual general meeting: within 180 days of year end for LLCs and within 90 days for SAOCs and SAOGs.
• Publication: only SAOGs publish results, on the Muscat Stock Exchange.
• Financial year: calendar year by default. The first period can run up to 18 months. Changing the period needs dispensation.
• Beneficial ownership: Ministerial Decision 630/2022 requires Omani companies other than SAOGs to keep a register of shareholders holding 25% or more at the registered office. It is produced within three business days of a MOCIIP request.
• Tax deadlines: the tax return with audited accounts is due within four months after year end. Withholding tax is due within 14 days of month end. VAT and excise are due within 30 days of quarter end.
• Information exchange: Oman takes part in the OECD Common Reporting Standard. FATCA applies to financial institutions.
• Changes: changes to constitutive documents or the commercial registration need MOCIIP approval.
• Personal data: the personal data law is Royal Decree 6/2022, in force 13 February 2023, with regulations in force 29 January 2024.

09Incentives and support programmes

Ten programmes support or reduce the cost of investment. Each has its own qualifying test.