Company Registration in Oman
Оман — перспективная и всё более популярная юрисдикция для ведения бизнеса на Ближнем Востоке.
Benefits of setting up a company in Oman
Political stability and security are a major plus for investors. The country’s geographic location is advantageous for trade between Asia, Africa, and Europe. Developed infrastructure—ports, airports, and logistics centers—is available.
Low taxes – corporate tax is typically 15%, but free zones often have no income tax. Free economic zones (SEZs) offer attractive tax incentives, 100% foreign ownership, and simplified registration procedures.
Oman Vision 2040 is a long-term strategic initiative to diversify the economy, reduce dependence on oil, and develop infrastructure.
MAIN FORMS OF COMPANIES
Joint Venture (JV)
Joint Stock Company (JSC)
Limited Liability Company (LLC)
Limited Partnership (LP)
General Partnership (GP)
Holding Company (HC)
Sole Proprietor Company (SPC)
Branch
Commercial Agencies
Representative Office
OMAN’S FREE ECONOMIC ZONES
Salalah FREE ZONE (2006) – a port zone with a focus on the trade and logistics sectors.
Chemical Processing
Logistics and Distribution
Manufacturing and Assembly
Food Industry
Pharmaceuticals
Renewable Energy
Industrial
Sohar Free Zone (2010) – Port of Sohar, access to markets in India, East Africa, and the Middle East.
License Types.
General Trading
Logistics
Light Manufacturing
Industrial
Service Provider
Duqm (2011) is the largest free zone in the Middle East.
License types:
Refineries, oil storage
Transport and Logistics
Health Services
Market and Malls
Mining
Fishery Industries
Real-Estate
Warehousing
Tourist Resorts
ADVANTAGES FOR COMPANIES REGISTERED IN THE FREE-ZONE
Tax holidays: Companies registered in free zones are entitled to tax holidays for up to 30 years.
Exemption from customs duties: Those registered in free zones are exempt from customs duties on the import and export of goods.
No minimum authorized capital requirement
Prior to the reform, the minimum authorized capital was 150,000 Omani rials (approximately USD 390,000). Currently, there is no minimum authorized capital requirement. However, the capital amount specified in the company’s charter must be commensurate with the planned activities. The regulator has the right to request additional comments from the founders regarding the capital increase if it deems the proposed amount insufficient.
Free repatriation of capital and profits: Companies in free zones are allowed to freely transfer profits and capital abroad.
Full ownership by foreign investors: Foreign investors can own companies without the need for an Omani partner.
WHO CAN MANAGE A COMPANY
Companies often require an Omani partner or director (part-ownership or representative).
Free zones allow 100% foreign management.
To appoint a director or manager, an Omani residence permit is usually required.
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COMPANY ESTABLISHMENT PROCEDURE
Primary training
Initiation of a preliminary project assessment
Prepare and complete the information and documents required for company registration:
- 3 company name options
- Color copies of shareholders’ passports
- Color photograph of the shareholder
- A valid email address and mobile phone number
- Business plan
Company registration
Reservation of a company name by submitting an application to the Ministry of Trade and Industry (MOTI)
After the company name has been approved, the shareholders’ documents and the company’s charter must be submitted to the MOSI.
After registering with MOCI, you must register your business with the Oman Chamber of Commerce and Industry (OCCI) to ensure that it complies with all applicable commercial regulations.
Post-registration process
Registering with the Oman Police
Registration with tax authorities
Registration with the State Administration of Social Insurance
Obtaining industrial, environmental and other permits and licenses
Registration with the Ministry of Labor
Municipal license
Obtaining the required license
Development of a company seal
Employee registration
TAXATION OF COMPANIES IN OMAN
Corporate tax and VAT rates, applicable benefits
The corporate income tax rate is 15%.
- A reduced rate of 3% is provided for SMEs (with income of no more than 100,000 riyals, up to 15 employees, and restrictions on the authorized capital and type of activity).
- Established manufacturing enterprises are exempt from corporate income tax for up to 5 years.
- The deductibility of intra-group service expenses is limited to 3% to 10% of the Omani taxpayer’s income.
- An arm’s length rule also applies to cross-border payments, and a thin capitalization rule is in place.
The VAT rate is 5%.
- A 0% rate also applies to a closed list of transactions.
- The rate complies with the Gulf Cooperation Council (GCC) Single VAT Agreement.
Tax at source
- Withholding tax in Oman is set at 10% for dividends, interest, and royalties.
- However, Omani law defines dividends as payments on shares in a JSC, not on participation interests in an LLC.
- Furthermore, from 2019 to the present, royal decrees have repeatedly extended the suspension of withholding tax on dividend and interest payments (including sukuk placements).
- According to the latest clarifications from the Capital Market Authority, the suspension of withholding tax has been extended until 2025.
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WHY YOU SHOULD USE OUR PROFESSIONAL SUPPORT
Account registration is 2 times faster
Individual analysis of high-risk cases
Increased chance of account approval
Support at all stages
OUR TEAM
Yevhen Sarafanov
Owner and CEO LOCMAN ICS LTD
Ludmila Chilik
Corporate and tax lawyer (Europe, USA, East Asia, UAE)
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