Oman has opened the door wider for foreign investors in recent years, with fewer ownership restrictions and a more straightforward set-up process. The Limited Liability Company (LLC) is the most frequently used business entity in Oman due to its speed of establishment, limited liability and relaxed share capital requirements.
Until 2020, foreign investors in Oman were only permitted to own 70% of a business, with an Omani partner owning the remaining 30%. But this restriction was lifted under the Foreign Capital Investment Law (FCIL), which allowed foreign investors to own 100% ownership of their businesses in most sectors in mainland Oman.
The Oman Ministry of Commerce, Industry and Investment Promotion (MOCIIP) maintains a list of commercial activities that are prohibited to foreign investors, which includes recruitment, vehicle repairs and fueling stations, and the manufacture of traditional Omani products.
Whether you are planning to start a small local operation or a larger venture with international partners, setting up an LLC gives you a solid foundation. This guide breaks down the key steps, requirements and costs involved, so you know exactly what to expect before you begin.
Why choose an LLC in Oman?
An LLC gives you limited liability, access to the local market and a structure that is recognised and trusted across Oman. You can have up to 50 shareholders, and in most sectors, foreign investors are allowed full ownership without needing a local partner.
Some activities still fall under the restricted list and may need government approval or an Omani shareholder, so it’s worth checking early. But for a wide range of commercial and professional services, the LLC remains the go-to business set up structure.
Step-by-Step: how to open an LLC in Oman
Choose your activity and reserve a name
To get started, you will need to decide on your business activity and confirm that it’s permitted for foreign-owned LLCs. The next step is reserving a company name through MOCIIP. The name must be unique, relevant to your activity and be compliant with Oman’s naming rules.
Draft and notarise founding documents
Once the name is approved, you will draft your Memorandum and Articles of Association. These outline your business structure, shareholder details and how the company will operate. Both documents must be signed and notarised before submission.
Register the company
Once the documentation is complete, you can apply to MOCIIP for a Commercial Registration Certificate. At this point, you will also need to register with the Oman Chamber of Commerce and Industry (OCCI). These steps give your company legal standing.
Apply for licences and tax registration
Having received a Commercial Registration Certificate, you can then apply for the licences or permits tied to your chosen business activity. Some sectors require further clearances from specific ministries or regulators, so check early.You will also need to register with the Oman Tax Authority. The corporate tax rate is currently 15%. VAT may apply depending on the business turnover. The standard rate of 5% VAT will apply on goods and services supplied in Oman, subject to specific exemptions and zero ratings prescribed under Oman VAT law.
Set up a bank account and office address
A corporate bank account is also required. Some banks may ask for a certificate showing the initial capital has been deposited, although this is not generally enforced for all activities. You must also have a registered office address in Oman, even if you’re working remotely.
Final steps and timelines
Depending on your business activity, you may also need to register with the Royal Oman Police, the Ministry of Manpower, or local municipalities.
Ownership, capital and compliance
Most LLCs in Oman can now be fully foreign-owned, but approval depends on the specific business activity and is generally granted on a case-by-case basis.
There is no fixed minimum capital requirement in most sectors, but some regulated activities still require a paid-up share capital, often starting from OMR150,000 (c. USD390,000).
Registered companies must meet certain compliance requirements to remain in good standing. These include renewing the commercial licence each year, meeting ‘Omanisation’ hiring targets, filing annual tax returns, and registering for VAT if the total value of annual supplies exceeds or is expected to exceed the VAT threshold.
Expected costs
Registration fees usually fall between OMR150 and OMR500, while business licences can range from OMR250 up to OMR3,000, depending on your business activity and company grade. You should also factor in notary and legal fees, along with the cost of renting office space, which is mandatory.
Further optional costs may include consultancy or PRO support. The total outlay varies by business type, ownership set up and sector.
How can Sovereign PPG help?
Whether you are launching a new venture or expanding into Oman, Sovereign PPG can manage the process from start to finish. With our knowledge of local rules and strong working relationships with key government bodies, we can handle the process at every stage, including business registration, structuring, licensing, visa processing and ongoing PRO support.
If you need help setting up an LLC in Oman or with any related company set up, restructuring or compliance matter across the UAE, Oman, Qatar or Saudi Arabia, contact Sovereign Oman below.
