Entity Types
Limited Liability Company (LLC): The most common vehicle for foreign and domestic commercial operations. An LLC requires a minimum of 2 shareholders and a maximum of 40. Under the current foreign investment framework, 100% foreign-owned LLCs are permitted in most sectors.
Closed Joint Stock Company (SAOC): Private companies with 3+ shareholders, permitted to have up to 200 shareholders. Common for larger businesses or those with complex equity structures.
General/Open Joint Stock Company (SAOG): Publicly listed companies on the Muscat Stock Exchange. Minimum capital requirements and CMA oversight apply.
Branch of Foreign Company: A registered branch of an overseas parent — not a separate legal entity, so the parent bears unlimited liability for branch obligations. Suitable for specific project execution or service delivery where the parent bears commercial risk directly.
Representative Office: For market research and liaison only — cannot engage in commercial activities or generate revenue.
Free Zone Entity: Companies established within OPAZ-regulated zones under zone-specific regulations — typically similar structure to mainland LLC but with zone-specific benefits and requirements.
LLC Formation Process
The standard LLC registration process in Oman (outside free zones):
Step 1 — Trade name reservation: Reserve the company name through the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) — online via the Invest Easy portal. Typically 1-2 business days.
Step 2 — Articles of Association: Draft and notarize the Articles of Association. Should specify shareholder details, capital structure, business activities, and governance arrangements. Notarization required.
Step 3 — Commercial Registration (CR): Apply for Commercial Registration through MOCIIP — the primary business identity document in Oman. Can be done online through the Invest Easy digital platform. Issued within 1-5 business days for standard activities.
Step 4 — Municipal licence: Register with the relevant municipality for a business premises licence (if physical premises are required). Timeline varies by municipality.
Step 5 — Sector-specific licences: Additional approvals required depending on business activity — Ministry of Health for healthcare, Ministry of Education for training, CBO for financial services, etc.
Step 6 — Tax registration: Register with the Tax Authority for corporate income tax purposes. VAT registration if turnover exceeds the threshold.
Step 7 — Social insurance registration: Register with the Public Authority for Social Insurance (PASI) for Omani national employees.
Total typical timeline: 2-4 weeks for standard commercial activities, including all registrations.
Minimum Capital Requirements
Capital requirements vary by entity and activity type:
- Standard LLC: No statutory minimum capital for most activities; however, specific licensing authorities may require minimum capital evidence
- Foreign-owned LLC (certain activities): OMR 150,000 minimum paid-up capital may be required for some commercial licences
- Banking: Significant capital requirements set by CBO (hundreds of millions of OMR for new bank licences)
- Insurance: Minimum capital per CMA requirements
- Healthcare facilities: Minimum capital requirements per Ministry of Health regulations
Free Zone Entities
For investments in OPAZ-regulated zones, the registration process goes through the relevant zone authority (SEZAD for Duqm, SFZ for Salalah, SFZCO for Sohar) rather than MOCIIP. Key differences:
- Single point of contact (zone authority) for all approvals
- Zone-specific minimum investment thresholds may apply
- Faster processing for zone-specific activities
- Different capital requirements — often higher minimum investment to qualify for zone benefits
Post-Registration Obligations
Once established, Omani companies must:
- Annual commercial registration renewal
- Annual financial statements filing with the Tax Authority
- Corporate income tax filing: By 30 April each year
- VAT returns: Monthly or quarterly (depending on turnover) if VAT-registered
- Omanisation compliance: Meet sector-specific Omanisation percentage requirements
- Labour Ministry registration: Employment contracts filed and work permits maintained
- Social insurance contributions: Monthly PASI contributions for Omani employees