The Sultanate of Oman, additionally recognized as Oman, occupies an exceptional position in the southeastern region of the Arabian Peninsula. The nation is distinguished by its pivotal location, rendering it significant for global commerce and economic alliances, presenting unparalleled prospects for trade and investment. Oman presents a resilient economy, an appealing fiscal system, and political steadiness, thereby establishing it as one of the prime locales to institute a corporation within the vicinity.

In this article, we will take a detailed look at the procedure for registering a company in Oman, highlighting the main requirements and processes that entrepreneurs and investors may encounter when trying to enter the Omani market. We will also discuss the main advantages that Oman offers for doing business, including its tax policy, economic situation and legal environment that attracts the attention of the international business community.

Overview of the economic climate and investment opportunities in Oman

Oman, a country with a rich historical heritage and a strategic geographical location, acts as a significant economic hub in the Middle East. With its economic resilience, the sultanate has received high marks in global rankings for its stable economy and favourable investment climate. The government is actively promoting improvements in the business climate by facilitating the registration of businesses in Oman and offering tax incentives to attract foreign investment.

Oman's economy is slowly recuperating from the aftermath of the COVID-19 pandemic. According to statistics disclosed by the World Bank, the nation's gross domestic product (GDP) for 2022 amounted to $114.667 million, positioning it in the 64th place globally. Petroleum and natural gas exports delineate the predominant economic pursuits, constituting two-thirds of the nation's GDP. Fisheries and hospitality succeed the petroleum and natural gas sector in terms of their influence on the economy.

As part of the Oman 2040 tactic, the nation is vigorously pursuing economic variety, diminishing reliance on the petroleum sector and cultivating substitute sources of revenue. This impetus towards a multifarious economic configuration unveils fresh prospects for overseas financiers in the travel, conveyance, fabrication, sustainable power, and technical fields, hence broadening scopes for investment.

Oman is additionally a dynamic participant in the Gulf Cooperation Council, along with the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, and Kuwait. These nations synchronize their endeavors in the economic, political, and security realms, fortifying mutual connections and augmenting stability in the area.

Attractive sectors for investment

  • Wanderlust. Oman is vigorously fostering its wanderlust sector by investing in infrastructure and promotional efforts. The nation presents an unparalleled blend of cultural patrimony, scenic splendor, and contemporary amusements, rendering it appealing to global wanderers.
  • Logistics and conveyance. Oman's strategic placement at the ingress to the Persian Gulf renders it a pivotal logistics nexus linking trade pathways amidst Asia, Africa, and Europe. The augmentation of port amenities and conveyance grids unveils novel prospects for investments in depots and logistics enterprises in Oman.
  • Fabrication. The Omani administration is fostering the advancement of the fabrication domain by providing advantageous conditions and assistance for endeavors in the processing, consumer commodities, and faint fabrication sectors. Particular emphasis is placed on endeavors aimed at exports and value augmentation.
  • Sustainable Power. The nation possesses substantial capacity in solar and wind power, rendering the sustainable energy domain a compelling investment prospect. Alternate energy endeavors in Oman receive governmental backing.
  • Craftsmanship and Novelty. Oman aspires to emerge as a pivotal nexus for novelty and ingenuity by ushering in the digitization of governmental amenities and bolstering fledgling enterprises and informatics ventures. Allocating resources toward technopolises and nascent enterprise hatcheries is advocated, accompanied by inducements and subsidies.

Special Economic Zones and Free Trade Zones in Oman

Oman is advancing considerably in advocating its Special Economic Zones (SEZs) and Free Trade Zones (FTZs) in a bid to entice global investment and bolster the expansion of the Omani economy. Global enterprises may relish exceptional privileges and advantages in particular zones, which will facilitate their path to a lucrative enterprise in Oman significantly.

The primary liberated economic regions in Oman:

  • Salalah Free Zone. This territory is situated in the meridional segment of Oman, proximate to the haven of Salalah, one of the supremely pivotal havens in the meridional reaches of the realm. Its intention is to foster logistics, fabrication, dissemination, and warehousing functions.
  • Sohar Free Zone. Situated adjacent to the haven of Sohar, this territory furnishes immediate ingress to one of the foremost port complexes in the vicinage. The emphasis here lies in fabrication, metallurgy, logistics, and mercantile pursuits.
  • SEZ in Duqm (SEZAD). One of the most expansive economic zones in the Levant region, SEZAD concentrates on the advancement of ponderous manufacture, petrochemistry, and maritime and logistical infrastructure.
  • Al Mazouna Free Zone. This Free Economic Zone furnishes unparalleled opportunities for enterprises that aspire to broaden their horizons globally owing to its strategic positioning and infrastructure.
  • Khazaen Economic City. This fiscal metropolis embodies a fresh nexus for logistics, fabrication, and trade, presenting avant-garde commercial remedies with the most recent technological progressions.
  • Industrial Estates (MADAYN). This is a consortium of industrial preserves presenting locales for fabrication and refinement factories across sundry fields. MADAYN engenders propitious circumstances for the advancement of petite and moderate-sized enterprises by granting entry to the requisite infrastructure and amenities.

These zones contribute to Oman's economic development by providing foreign companies with advantages such as tax incentives, investment protection, simplified licences and permits, and the possibility of full foreign ownership. The creation of such an incentive environment allows Oman to attract the attention of international business, broadening the horizons for global companies and strengthening its position on the world economic stage.

Requirements and conditions for foreign investors

For extraneous investors endeavoring to cultivate their enterprise within Oman's Special Economic Zones (SEZs) or Free Trade Zones (FTZs), there exist particular prerequisites and stipulations to warrant their triumphant amalgamation and functioning within the nation.

  • Enterprise Registration.

In order to start operations, investors must officially register their company in Oman with the relevant authorities or organise a branch of an existing foreign firm. This is the first step towards legitimising their business in the jurisdiction.

  • Formation of the statutory fund.

Contingent upon the selected Free Economic Zone (FEZ) and the nature of the enterprise envisaged, financiers shall necessitate fulfilling specific criteria concerning the provision of funds to constitute an accredited endowment. Its magnitude may fluctuate, underscoring the imperative to meticulously examine the stipulations prior to commencing activities.

  • Obtaining licences and permits.

A crucial element is to acquire all the requisite charters and sanctions to operate in the elected region, which are dispensed by the ruling authorities of these regions. This affirms the entitlement of the Omani enterprise to conduct a specific genre of commerce and is a prerequisite.

  • Lease or purchase of premises.

In order to do business in a zone, investors are required to secure office or manufacturing space by renting or purchasing. This creates a physical presence of the company in Oman, which is a key requirement for operating in a zone.

These parameters and stipulations furnish a solid foundation for the commercial endeavors of overseas stakeholders in Special Economic and Liberated Commercial Regions, establishing a distinct structure for their flourishing enterprises. Adherence to these stipulations not only streamlines the initiation and administration of commercial ventures in Oman but also guarantees the juridical safeguarding and constancy of investments in the locality.

Advantages of establishing a business in SEZs and FTZs in Oman

Doing business in Oman's Free Trade Zones (FTZs) and Special Economic Zones (SEZs) offers many important advantages to foreign investors, making these locations some of the most attractive business locations in the Middle East.

  • Tax benefits.

One of the main advantages is tax incentives. Organisations operating in SEZs and FTZs in Oman can benefit from corporate tax exemptions for up to 30 years. They are also exempt from value added tax and customs duties, which significantly reduces the financial burden and contributes to a more efficient allocation of resources.

  • 100% foreign ownership.

Unlike other jurisdictions in the region, Oman offers organisations the opportunity to fully own a business in SEZs and FTZs without requiring a local partner. This gives international firms greater freedom in management and decision-making, as well as full control over investments and profits.

  • Simplified visa regime.

Overseas investors and their employees in Oman can benefit from a simplified work visa procedure. This facilitates the process of attracting international professionals and accelerates business development in Oman.

  • Strategic location.

Special Economic and Free Trade Territories in Oman are strategically situated with unmediated ingress to marine and aerial conveyance nuclei. This is optimal for export-focused entities, enabling them to expeditiously and proficiently disseminate their commodities to global markets.

  • Support from the government.

Investors also receive comprehensive support from the zones' governing bodies. This includes assistance in obtaining all necessary licences and permits, as well as advice on doing business in Oman. This support greatly simplifies the process of starting and growing a business, lowering the barriers to entry for new companies.

The amalgamation of these benefits renders Oman a propitious locale for alien investors seeking to broaden their footprint in the Middle East and capitalize on the singular business prospects.

Legal basis for doing business in Oman

Oman's jurisprudence merges components of civil code, Islamic Sharia, and tradition, thereby engendering a propitious and enduring milieu for enterprise. This assumes a pivotal function not solely for indigenous merchants but also for global investors aspiring to enrich their footprint in the Omani marketplace. As segment of its effort to ameliorate the investment atmosphere, the Omani governance is incessantly refining its legal framework to augment transparency, safeguard investments, and galvanize economic advancement.

The primary statutory enactments dictating the registration and operation of enterprises in Oman:

Commercial Code

This ordinance establishes the fundamental tenets for the execution of mercantile pursuits within the nation. It encompasses corporate incorporation, mercantile dealings, and insolvency protocols.

Companies Law

This statute governs the establishment and functioning of sundry kinds of corporate frameworks in Oman. The Bill encompasses stipulations concerning the magnitude of the share capital, managerial arrangement, and bookkeeping and financial disclosure.

Foreign Capital Investment Law (Foreign Capital Investment Law)

The statute is crafted to incentivize overseas direct investment by streamlining enrollment procedures and furnishing foreign investors with a plethora of advantages, encompassing the capacity to completely possess an enterprise in Oman sans the necessity of a indigenous co-participant.

Free Zones Law (Free Zones Law)

Specifies the jurisprudence for the founding and functioning of Liberated Districts within Oman. Monetary and excise levies are enforced on enterprises functioning in these regions.

Business structures for companies in Oman

There exist multiple commercialization frameworks accessible to visionaries in Oman, affording them the opportunity to select the optimal alternative, considering the nuances of their enterprise and advancement blueprint.

Limited Liability Company (LLC)

A limited liability company (LLC) semerges as one of the most esteemed configurations of enterprise in Oman owing to the executive adaptability and restrained accountability of its associates.

Prerequisites for initiating an LLC:

  • Business leaders and interested parties. At minimum, twain interested parties and lone overseer are compulsory to commence an LLC, and it is not mandatory that they residents of Oman.
  • Sanctioned wealth. The law does not specify a minimal amount of sanctioned wealth, but a minimum of OMR 150 thousand (approximately USD 390 thousand) is generally required for registration.
  • Presence of a documented habitation. It is necessary to possess a habitation in Oman.
  • Restrictions on the type of enterprise. LLC is prohibited from engaging in banking and insurance endeavors.

Features of management and ownership:

  • Possession interests. In a Limited Liability Company (LLC), interests cannot be mortgaged or marketable without initially proffering them to the remaining associates.
  • Governance Arrangement. LLCs are governed by shareholder-appointed stewards responsible for daily operations, while pivotal strategic determinations are formulated by the shareholders themselves.

A notable alteration was the acceptance of modifications to the Exotic Investment Legislation (FCIL) in January 2020, permitting alien investors to possess up to 100 percent of an enterprise in Oman devoid of a regional collaborator. This adjustment has notably enlarged the scope for extraneous direct investment and streamlined the process for commencing and administering a venture domestically.

Joint Venture, JV

Joint Venture (JV) is a pervasive cooperation option for both autochthonous and transmarine entrepreneurs in Oman, affording stakeholders with unique chances for alliance. This structure involves partitioning the assets, adeptness, and erudition of allies to achieve particular aims or accomplish mutual business ambitions.

Principal facets and stipulations for instituting a Joint Venture:

  • Innovators. Two or more sects, encompassing both lawful entities and individuals, could concoct a collaborative undertaking. Below a Co-Enterprise, the participants allocate perils, outlays, and gains.
  • The magnitude of the ratified capital. The exact amount of the ratified capital is determined based on agreements among the collaborative undertaking participants and the peculiarities of the undertaking, and Omani statute does not establish stringent confines on the ratified capital for collaborative undertakings in Oman.
  • Governance framework. The governance framework of the collaborative undertaking is ascertained by concurrence amidst the parties. It may entail the establishment of a governance committee or the designation of distinct overseers for each party.
  • Juridical standing. A Co-Enterprise may possess juridical personality if stipulated in the memorandum of association, or it may function as a contractual arrangement sans juridical personality.

The choice of joint venture as a modality of establishment in Oman furnishes entities with the adaptability to oversee undertakings and exploit indigenous assets and erudition, rendering it a notably enticing choice for transnational alliances and market ingress in Oman. Collaborating with indigenous entities through a consortium not solely fortifies comprehension of the cultural and market attributes of the locale, but also expedites profounder assimilation into the nation's economy. This paradigm proffers the additional advantage of augmented ingress to indigenous dissemination networks, governmental pacts, and fiscal backing.

Public Joint Stock Company ‒ SAOG

A public limited enterprise in Oman is a form of juridical entity suitable for voluminous establishments with substantial operations and a broad spectrum of stakeholders. This commercial paradigm proffers the capability to amass funds via public vendition of equities and possesses a multitude of particular prerequisites and attributes.

Principal attributes and prerequisites for a Public Limited Company:

  • Equity proprietors. A minimum of three equity proprietors is obligatory to formulate a Société Anonyme Omani Group. Unlike a Limited Liability Company, there is no confinement on the maximal count of equity proprietors, rendering this form exemplary for expansive undertakings with the necessity for an extensive gamut of investments.
  • Quantum of authorized capital. At the commencement of a Société Anonyme Omani Group in Oman, a minimum imperative authorized equity capital of OMR 2 million must be contemplated, which may fluctuate contingent on the extent of the enterprise. This capital necessitates to be disbursed in its entirety at the juncture of enrollment of the enterprise in the realm.
  • Regulative Structure. Société Anonyme Omani Group is overseen by a Council of Administrators chosen by the equity proprietors. The requisites for the configuration of the Council of Administrators and its capacities are delineated in the Omani Commercial Companies Law.
  • Candor and transpicuousness. One of the pivotal aspects of this framework is the elevated degree of candor and transpicuousness. Enterprises in Oman are compelled to promulgate their fiscal statements and furnish equity proprietors with routine admittance to intelligence regarding their activities.

A public limited company in Oman is an efficacious conveyance for voluminous investments and commercial enterprises, proffering pliancy in garnering funds and instituting rigorous corporate governance. This corporate configuration is aptly tailored for enterprises oriented towards amplification and transnational undertakings.

Closed Joint Stock Company ‒ SAOC

A closed joint stock company (SAOC) in Oman is delineated as a configuration of commercial establishment that constrains the count of its stakeholders and precludes the potentiality of unencumbered barter of equity on communal exchanges. This layout is stipulated for Omani enterprises that favor a restricted quantity of financiers and aspire to uphold authority over the configuration of their stakeholders.

The cardinal benchmarks of a Closed Joint Stock Company are:

  • Equity stakeholders. In a Société Anonyme à Responsabilité Limitée (SARL), the quantity of stakeholders is circumscribed by statute and shares cannot be freely vended or proffered to the populace. A minimal of three stakeholders and three overseers are requisite to institute such a corporation in Oman.
  • Quantum of sanctioned wealth. The minimal sanctioned wealth quantum for a SARL is determined at OMR 500 thousand. It is pivotal that the complete sanctioned wealth is proclaimed and fully compensated at the juncture of founding the corporation in Oman.
  • Governance configuration. This configuration is overseen by a tribunal of overseers elected by the stakeholders. Omani mercantile jurisprudence delineates decrees on the configuration and operation of the tribunal of overseers. Dissimilar to Société Anonyme Ouverte Générale (SAOG), SARL has the prerogative not to divulge its pecuniary statements.

SAOC in Oman is a superb selection for entrepreneurs and investors who cherish clandestinity and aspire to establish a steadfast and regulated commercial milieu. This alternative is particularly apt for familial enterprises, nascent ventures with a restricted number of backers, and endeavors necessitating intimate collaboration among stakeholders to attain collective objectives.

Limited Partnership, LP

A Limited Liability Partnership (LP) in Oman is a configuration of commerce that amalgamates fragments of both a consortium and a conglomerate, offering managerial elasticity and restricted liability for one or more participants.

The attributes and conditions of a Limited Liability Partnership include:

  • Collaborators. This enterprise design involves two categories of collaborators: journeying collaborators (restricted liability) and comprehensive collaborators (unrestricted liability). Collective collaborators invest and are accountable for the collaboration's commitments only to the degree of their investment, while comprehensive collaborators oversee the enterprise and are entirely liable.
  • Quantity of equity capital. There are no stringent bounds on the minimum sanctioned capital for LPs, the magnitude of which can be delineated in the articles of association.
  • Direction configuration. The direction of such a firm in Oman is often entrusted to the comprehensive collaborators, who are accountable for day-to-day administrative determinations, while the journeying collaborators are not engaged in administering the affairs of the firm.

General Partnership (GP)

A general partnership in Oman is a species of commercial affiliation wherein pair or further associates (biological or juridical entities) concomitantly conduct trade pursuits beneath a solitary mercantile appellation. The idiosyncratic trait of this genre is the entire liability of every one of the associates, signifying the potentiality of utilizing their individual holdings to satisfy the debts of the organization.

Features GP:

  • Vigorous involvement of all associates in administering affairs and formulating executive and operational determinations.
  • Reciprocal answerability of associates for deeds undertaken in the concern of the enterprise.
  • The integration and commercial protocol are streamlined in contrast to corporate modalities of governance.

Commercial Representative Office

An embassy of an overseas enterprise in Oman is an outpost inaugurated by an overseas enterprise to execute promotional and investigatory endeavors in the Omani marketplace. This configuration does not permit commercial undertakings or revenue generation for enterprises within Oman.

Business Model Features:

  • Representative establishments may solely participate in advertising and promotional undertakings in Oman.
  • The establishment is prohibited from engaging in direct mercantile pursuits or transactions.
  • Sanction must be procured from the Ministry of Trade and Manufacture.

Branch of a foreign company

A branch office of a foreign enterprise in Oman allows a foreign corporation to conduct business and commercial activities directly through its local unit.

Features of a branch office:

  • Prior to inaugurating a subsidiary in Oman, an overseas corporation must have been formally enlisted in its country of origin for a minimum of three years.
  • Sanction from the Omani Ministry of Trade and Manufacture is obligatory.
  • The subsidiary is empowered to conduct commerce and engage in agreements on behalf of the progenitor company.
  • The undertakings of the subsidiary are confined to the region delineated in its permit.

Electing the appropriate juridical structure of enterprise for an establishment in Oman is pivotal to effectively penetrating the indigenous marketplace. Every configuration possesses disparate enrollment and operational requisites that ought to be meticulously pondered in the framework of the corporate aims and tactics. It is further imperative to contemplate the fiscal and juridical facets of the selected GFC for enterprise in Oman to guarantee its conformity with both domestic and global benchmarks and criteria.

Do you have any questions?
We recommend contacting our specialists for more detailed information. To schedule a consultation, click the button below.

Company registration procedure in Oman

The procedure for establishing a company in Oman encompasses multiple stages and necessitates liaising with diverse official entities. A comprehensive handbook delineating this procedure:

Step 1: Determining and booking a firm name

At first, you must discover an exclusive appellation for your enterprise, evading coincidences with appellations of aforetime recorded enterprises in Oman. Appellation authentication and reservation customarily takes one day.

Once you have chosen a name, submit a reservation request through the official website of the Omani Ministry of Commerce and Industry (MoCI).

Step 2:Preparing and dispatching the documentation ensemble

Incorporate the appellation, objective of functioning, stockholder configuration, endorsed capital magnitude, and proprietorship equity in the draft of your company's regulations. Ensure to incorporate the regulations in the requisite establishment documentation that must be tendered to MoCI to procure a commercial permit.

Step 3: Registration with the Oman Chamber of Commerce and Industry (OCCI)

Upon approval of your papers, your enterprise must be enrolled with OCCI, which is a precondition for any manner of commerce. At this juncture, you shall be required to remit membership dues, the quantum of which hinges on the nature of your enterprise. Following prosperous enrollment, the Ministry shall furnish a Commercial Registration (CR) credential, subsequent to which you may petition for a permit either in physical presence or via an internet gateway contingent upon the prerequisites.By following these instructions and paying attention to detail at every step, you will be able to successfully establish your firm in Oman. It is also recommended that you consult a legal expert for full compliance with all local regulations and standards.

Package of documents for establishing a company in Oman

To properly inaugurate a corporation in Oman, a plethora of documentation needs to be tendered to the pertinent governmental bodies. Here is an intricate manual delineating the paperwork requisite for efficaciously founding an Omani enterprise:

  1. Enrollment Request Document. Complete the enrollment request document, which can be located on the Oman Ministry of Commerce and Industry website or acquired from its bureau.
  2. Memorandum of Association (Memorandum of Association). Must incorporate particulars about the designation of the enterprise in Oman, the objective of establishing the enterprise, the domicile address, particulars about the partners and their stakes in the sanctioned capital, the sum of the sanctioned capital, and the method of distributing the equity capital. The document must be presented in Arabic, with translation into English if needed.
  3. Articles of Association. Encompasses information concerning the governance configuration of the enterprise, the entitlements and obligations of the administrators, the arrangement of shareholders' assemblies, and other corporate processes. It must be submitted in Arabic.
  4. Attestation of booking of the denomination of the enterprise. This attestation demonstrates that the Omani Ministry of Commerce and Industry has ratified the denomination you have elected for the firm.
  5. Corroboration of the lawful domicile of the bureau. A replication of the lease pact or attestation of proprietorship of the premises to be employed as the bureau of your enterprise within Oman is obligatory.
  6. Accord to the designation of administrators. The scripted accord of each administrator to execute their obligations in accordance with the statutes of Oman is necessitated.
  7. Travel document particulars of stakeholders and administrators. Present duplicates of travel documents of all originators and administrators, encompassing overseas financiers.
  8. Evidence of deposition of sanctioned principal. Bank notification of deposition of the sanctioned principal reserve into the account of the Omani establishment.
  9. Testament of Absence of Criminal Background for Nonnatives. Foreign stakeholders and overseers must furnish a testament of absence of criminal background from their domicile nation.

Kindly adhere meticulously to all prerequisites and verify the precision of the details rendered to prevent hindrances in the establishment procedure of the enterprise in Oman. If requisite, it is advised to seek counsel with legal practitioners to guarantee conformity with indigenous legislation.

Opening a corporate account in Omani banks

Opening an account in Omani banks becomes a crucial aspect of managing business in this state. It's not just a mandatory requirement for conducting all financial transactions for your organization in Oman but also an important indicator of its financial reliability and transparency. The procedure for opening a corporate account may vary across different banks; however, there are standard steps and documents that need to be prepared.

Step 1: Choosing a banking institution

Conduct research on Omani banks to determine which one best suits the needs of your business activities in Oman. Pay attention to aspects such as the range of banking services, fee structures, availability of internet banking, level of customer support, and branch locations. For firms with shareholders from abroad, consider major Omani banks, including BankMuscat, BankDhofar, National Bank of Oman (NBO), and HSBC Oman.

Step 2: Document Collection

To inaugurate a corporate account, you will necessitate the ensuing assemblage of records:

  • Charter and articles of association of the company.
  • Articles of incorporation of the firm in Oman.
  • List of directors and share distribution.
  • Documentation certifying the identity of the management and shareholder composition.
  • Confirmation of the company's address in Oman (title deed or lease agreement).
  • Document granting authorization for the initiation of an account with the financial institution of your preference.

Step 3: Submission of Statement and Documentation Package

Dispatch the repository your finalized petition and any auxiliary manuscripts. During the validation of the proffered materials, supplementary enlightenment or manuscripts might be requisite. Subsequently, the repository will execute protocols to authenticate the stakeholders' and overseers' identifications for the Oman-situated entity, encompassing anti-money-laundering (AML) and counter-terrorism financing (CFT) scrutinies.

Step 4: Signing the Banking Agreement

Upon the sanction of your petition, you shall be summoned to engage in a covenant with the financial institution and finalize supplementary paperwork requisite for the activation of the account.

Step 5: Account Activation

Having completed the documentation signing process and meeting all the criteria set by the bank, your business account will be activated. Now, your enterprise in Oman gains access to account management opportunities, as well as, upon request, banking cards and additional financial instruments.

Omani companies are provided with the option to open and utilize multiple accounts, catering to diverse financial needs and commercial objectives. Debit cards can be linked to these accounts for ease of transactions and financial management.

Additionally, contemporary technologies empower the utilization of electronic monetary services, facilitating prompt oversight of corporate finances at any juncture and from any locale globally, thus augmenting versatility and efficacy to the enterprise's monetary transactions.

It's noteworthy that the procedure of inaugurating a banking repository, from entreaty submission to activation, customarily consumes approximately three fortnights. Timelines may fluctuate contingent on the thoroughness and precision of the proffered documents, as well as the peculiarities of banking protocols, emphasizing the significance of meticulous preparation and attention to minutiae when tendering documents.

Diligent preparation and stringent adherence to the stipulations can substantially hasten the procedure of inaugurating an account for your enterprise, ensuring seamless functionality in Oman's monetary domain.

The tax system of Oman and the main taxes for businesses

The tax legislation of Oman is characterized by transparency and simplicity, which is the main advantage for foreign businessmen. Oman offers competitive tax rates and various fiscal incentives aimed at attracting foreign investors.

Key taxes for businesses in Oman

Corporate Income Tax

Business levying in Oman involves imposing a static ratio of 15% on the clear proceeds of companies registered within the nation. This levy acts as the principal means of income acquisition from enterprises in Oman. Unique arrangements are established for entities functioning in the oil and gas harvesting domain, imposing upon them an elevated profit taxation ratio of 55%.

Simultaneously, Omani legislation supports the development of the small and medium-sized enterprise sector, offering such businesses the opportunity to benefit from a reduced corporate tax rate of 3% if they meet certain conditions:

  • At the commencement of the fiscal year, the titular capital of the corporation ought not surpass 50,000 OMR (roughly equivalent to 129,888 US dollars).
  • The yearly aggregate revenue must not surpass 100,000 OMR (around 259,775 US dollars).
  • The mean workforce count per annum must not outstrip 15 individuals.

Certain kinds of pursuits, encompassing maritime and aeronautical conveyance, exploitation of natural reservoirs, fiscal and assurance amenities, alongside furnishing of public utility amenities, are exempted from the feasibility of employing diminished levy proportions.

Value Added Tax (VAT)

Commencing from April 2021, Oman implemented a countrywide Value Added Tax (VAT) at a uniform rate of 5%, which is applicable to the majority of commodities and amenities, with specific classifications qualifying for levy exclusions.

Withholding Tax

This tax is levied on specific types of payments made by Omani companies to foreign entities. The tax rate is 10% and applies to dividends, interest, royalties, and payments for services rendered.

Fiscal benefits and preferences

In Oman, entities registered in autonomous regions and particular economic enclaves are entitled to sundry tax immunities. These immunities encompass the potential of acquiring complete or partial relief from business levy for a span of up to twenty-five years, along with advantages pertaining to VAT and excise levies.

Foreign financiers also possess entry to duty stimulants, which diverge contingent on the quantum of investment and the field of pursuit, and may comprise duty leaves and abated duty standards on proceeds.

To diminish the duty load on establishments and solitary proprietors absorbed in intercontinental pursuits, Oman has embarked upon reciprocal duty agreements designed at forestalling duplicate taxation. Furthermore, particular classifications of wares and amenities may be wholly absolved from VAT or exposed to a nil standard, incorporating an array of medicinal wares and amenities, along with export transactions.

Such a tariff configuration fosters the establishment of a foreseeable and steadfast milieu for conducting mercantile endeavors, bolstering the interests of both indigenous and extraterritorial enterprises endeavoring to broaden their footprint in Oman.

Management features of a company in Oman

Supervisory methodologies in Oman encompass stringent observance of indigenous regulatory and juridical norms, entailing scrupulous fiscal bookkeeping and disclosure, adherence to employment statutes, and acquisition of requisite licensing endorsements.

Responsibilities for financial accounting and reporting

In Oman, corporations are obligated to uphold meticulous archives of pecuniary dealings in conformity with global accountancy principles and to furnish yearly submission of comprehensive financial declarations, which necessitate a balance ledger, revenue proclamation, cash flow proclamation, and alterations in capital.

  • Accounting Documentation

Beneath Omani statutes, establishments are mandated to routinely record their pecuniary dealings in concordance with International Financial Reporting Standards (IFRS), which entails precise portrayal of all fiscal endeavors of the enterprise in Oman.

  • Financial Reporting

Annually, establishments operating within Oman are mandated to formulate and present documentation portraying their pecuniary status. This encompasses drafting equilibrium scrolls, revenue and expenditure declarations, liquidity movement declarations, alongside documenting alterations in capital configuration.

Per the precepts of global pecuniary communication guidelines, every fiscal records necessitate articulation in Omani rials. The inaugural reporting span ought to encompass a stretch spanning from half a year to a score and two months. The customary fiscal annum comprises twelve months culminating on December 31, wherein corporations are obligated to furnish reports to the Ministry of Commerce and Industry not exceeding six months post its cessation.

  • Audit

The preponderance of Omani enterprises necessitate an annual scrutiny of their pecuniary declarations, undertaken by autonomous scrutineers duly licensed to operate within the nation.

  • Tax Reporting

In regards to imposts, Omani establishments are obligated to furnish tax affidavits to the revenue bureau, grounded on scrutinized financial reckonings, whilst abiding by the set deadlines.

Employment inquiries and labor relations legislation

Engagement connections in Oman are governed by the Work Legislation, which establishes the entitlements and responsibilities of workers and proprietors, labouring conditions, minimum remuneration stipulations, respite, and labouring durations. It is also of significance to highlight that the Omani administration pursues a strategy of "Omanization," directed at enhancing the proportion of Omani inhabitants in the workforce. Establishments may confront quotas for enlisting foreign labourers and prerequisites to recruit Omani inhabitants for specific roles. Corporations aspiring to entice foreign personnel must ascertain that staff acquire labour permits, entailing adherence to lucid regulations and the submission of essential documentation to the Ministry of Labour.

Regulation of specific spheres of activity through licensing

In Oman, procuring licenses and authorizations is compulsory for conducting commercial endeavors in various sectors, akin to numerous nations. Stated differently, enterprises are obligated to acquire the requisite paperwork from governmental bodies to engage in particular categories of commerce. This procedure fluctuates contingent on the particular field, the scale of the establishment, and its geographic placement.

Among the domains that necessitate licensing within the nation are:

  • medical services,
  • educational services,
  • construction,
  • transportation and logistics,
  • tourism sector,
  • manufacturing activities,
  • alcohol trade,
  • activities related to natural resource exploitation.

If a company in Oman falls under this list, it needs to approach the relevant regulatory authority. For instance, for medical institutions, it would be the Ministry of Health; for educational institutions, it would be the Ministry of Education, and for construction projects, it would be the Ministry of Housing.

To petition for a commercial permit, enterprises in Oman must present a collection of papers, comprising the establishment's charters, affirmation of lawful abode, curricula vitae and credentials of pivotal staff, alongside an intricate delineation of the envisaged commercial pursuits. In certain instances, a commercial scheme, income and expenditure prognoses, and validation of the availability of requisite apparatus or methodologies may be necessitated.

Subsequent to the submission of all obligatory documentation, the governing entity will scrutinize them. As an element of this procedure, inspections of the premises and dialogues with pivotal staff might be executed to gauge the alignment of the proposed schemes with regulatory stipulations. Contingent on the outcomes of this appraisal, the regulator will either grant a permit for the execution of commercial undertakings or signify a denial, furnishing remarks on disparities and suggestions for their rectification.

It should be emphasized that authorization in Oman is not a singular procedure. Most authorizations are granted for a finite period and necessitate subsequent renewal. Enterprises in Oman must rigorously adhere to all stipulations delineated in the authorization throughout its period of validity. Disregarding these stipulations may culminate in authorization annulment and consequently, cessation of business activities.

Advantages of Establishing a Business in Oman

Commencing an enterprise in Oman entails unfurling avenues to a plethora of prerogatives that Oman extends to transnational investors and entrepreneurs seeking to fortify their footprint in the Middle Eastern domain.

Economic stability and prosperity on a political level

The governmental and fiscal steadiness of Oman distinguishes it from other Middle Eastern nations. A tactic of revenue diversification, advancement in the infrastructure domain, and robust governmental backing for private enterprises have all aided in the realm's swift economic expansion. Investment and trade advancement in the realm are fostered by the political steadiness bestowed by the monarchy.

Positive business climate and international recognition

Oman ranks prominently in worldwide assessments regarding the facilitation of commerce, investment allure, and economic transparency. The nation's officials are enacting robust endeavors to ameliorate the commercial milieu, encompassing streamlining the procedure of commercial enrollment within Oman, diminishing bureaucratic impediments, and fortifying investor entitlements safeguarding. These initiatives are directed towards enticing overseas investments and fostering economic advancement.

Attractive fiscal policy

Oman entices enterprises with assorted tax encouragements and dispensations, encompassing competitive corporate tax levies and income tax exemptions for particular undertakings and ventures for a designated duration. The implementation of VAT in 2021 with a comparatively modest tariff of 5% similarly adds to fostering a propitious tax milieu for enterprises.

Special Economic Zones and Free Zones

Oman vigorously advances distinct economic and unconfined trade zones, furnishing myriad advantages to enterprises, encompassing fiscal prerogatives, customs alleviations, streamlined enrollment methodologies and accreditation, and 100% alien proprietorship potentiality. These zones offer superlative circumstances for worldwide enterprise, manufacturing, exportation endeavors, and logistical operations.

Agreements on the Regulation of Double Taxation

As component of endeavours to diminish the fiscal encumbrance on enterprises and solitary entrepreneurs functioning at the worldwide echelon, Oman has embarked upon upwards of 35 bilateral pacts directed at forestalling duplicate taxation with sundry nations, as well as untrammeled commerce pacts with the USA, Singapore, European nations, and Gulf emirates. These endeavors augment transparency and assurance in discharging fiscal duties, thereby amplifying Oman's allure to international enterprises.


Oman captivates the notice of cosmopolitan investors and innovators endeavoring to fortify their stance in the Persian Gulf and Middle Eastern realm. This nation distinguishes itself for its equilibrium in both fiscal and governmental facets, furnishing superb circumstances for enterprise, fiscal encouragements, sophisticated free zone infrastructure, as well as global pacts aimed at forestalling duplicate taxation. This affords a dependable groundwork for the advancement of ventures in sundry sectors.

However, to establish and manage a company in Oman, one must thoroughly understand the local legislative, regulatory peculiarities, and cultural nuances. Here, the presence of a reliable partner plays a key role, capable of helping overcome administrative obstacles and ensuring a smooth start and continued operation of your enterprise in Oman.

Company TK Deal s prepared to function as such an associate, proffering a complete array of amenities to bolster all phases of commercial inauguration in Oman. With a profound comprehension of the indigenous market, jurisprudence, and commercial customs, TK Deal furnishes extensive assistance: from crafting and dispatching documents to deliberations regarding the selection of the juridical configuration of commerce, procuring permits, fiscal counsel, and accountancy. Through cooperation with TK Deal, you will be capable of concentrating on advancing your enterprise, assured in conformity with all prerequisites and benchmarks of indigenous regulation.