Definition
Company formation in Oman involves registering a legal business entity with the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) and obtaining the necessary commercial and activity-specific licences. Oman offers several corporate structures including the Limited Liability Company (LLC), Joint Stock Company (SAOC/SAOG), Sole Proprietorship, Partnership, and Branch Office of a foreign company. Since the 2019 Foreign Capital Investment Law, most sectors permit 100 percent foreign ownership, removing the previous requirement for a minimum 30 percent Omani shareholding.
Context in Oman
The LLC is the most common structure for small and medium enterprises, requiring a minimum of two shareholders and no minimum capital for most activities. Joint stock companies are used for larger ventures and public listings. The registration process has been streamlined through the Invest Easy online portal, which handles company name reservation, articles of association, commercial registration, and chamber of commerce membership. Activity-specific licences (e.g., for construction, food, healthcare) are obtained from the relevant ministry or regulatory authority. Free zone companies follow a separate, simplified registration process managed by the respective free zone authority. Businesses must also register for VAT if they exceed the mandatory threshold and enrol Omani employees in social insurance.
Key Data Points
| Metric | Value |
|---|---|
| Primary regulator | MOCIIP |
| Most common structure | LLC |
| Foreign ownership permitted | 100 % in most sectors |
| Online registration portal | Invest Easy |
| Minimum capital (LLC) | None for most activities |
Vision 2040 Connection
Ease of doing business is a core Vision 2040 target. The strategy aims for Oman to rank among the top 20 globally in the World Bank ease of doing business metrics. Simplified company formation, reduced bureaucracy, and digital government services are key enablers of this ambition, attracting both domestic entrepreneurs and foreign investors.
Further Reading
- [[What is FDI]]
- [[What is a Free Zone]]
- [[Oman Labour Law Guide]]