Company Formation Services in Oman
How do you start or form a company in Oman? Learn various steps and requirements involved with company formation in Oman.
- Choose the best company structure based on your requirements in Oman
- Set-up the business in your country of choice, as per your requirements in Oman
- Get your paperwork and documentation filled professionally with ease in Oman
- Manage taxation and licensing requirements in Oman through Helpline Group’s dedicated legal compliance mechanism
Learn how to proceed with business interests and investments in Bahrain by forming a business or a company of your choice.
Located in the Arabian Peninsula, Oman maintains a strategically important position among countries in the Gulf. As a starting point in the Persian Gulf, it has far superior advantages beyond conventional businesses and industries operating in the region. Although a diversified economy, Oman’s reliance on oil exploration, petroleum and gas sector are much stronger than other sectors. These remain major exports for the country. As oil exploration reaching maturity in the country, Oman is seeking alternative industries and the development of the same.
As the company expands into other sectors and lend government support to the development of such sectors, this would be beneficial for businesses in the country Agriculture is one of such industries, where dates, vegetables and grains are major exports of Oman. Tourism is also becoming a lucrative sector in the country. In long-term, there is a possibility that tourism will be the most revenue generating activity in the entire Oman. However, businesses, especially foreign businesses subjected to complexities such as PPP Laws, and FDI regulations in Oman.
Helpline Group is an ISO 9001-2008 Certified Government Approved Agency
Established in 1998, Helpline Group has achieved widespread presence across the world in the past ~25 years. With its head office located in Dubai, we serve our customers from across the world through out global offices and partner networks.
As Oman is currently pursuing active plans to enhance its industrial activities and growth, major sectors like electricity and power, cement and desalination will begin to bloom in the country, resulting in attracting foreign players to the sector and creating better business opportunities for such businesses. Hence, non-petroleum sectors are also seeing a potential for revival in Oman, which is good news for potential investors and entrepreneurs planning to invest in Oman. Helpline Group can work with you to register, from and run your business in Oman.
Transparency in Pricing and Services
Helpline Groups follows a standardised pricing policy, and we follow a transparency policy, which makes sure our customers understand our pricing and what processes and practices are involved in each stage of the process. This helps in maintaining a mutual understanding between us and our clients.
Company Formation Steps in Oman
Finding A Partner
Most business forms must have a partner who is a citizen of Oman to set up a business in Oman. Helpline Group can find a suitable partner for your business in Oman.
Regulations and requirements of law changes as per the industry and business requirements. Helpline Group can help you understand these changes and makes the best decision in Oman.
Licensing is a key part of getting a business set-up and running in Oman. Helpline Group can help you choose the right licences from the numerous options available in Oman.
Helpline Group can help you get your company registration goals achieved in Oman. We have set-up professional services to help you form your company and business in Oman. We will take good care of all your business requirements and formalities associated with documentation and filing of applications and processing in Oman.
Assurance on Reliability and Quality
Helpline Group's primary motto is to ensure quality and reliability while ensuring the highest customer satisfaction possible so that our customers become our evangelists. You, as a client, can be assured that your company formation processes are in good hands, and your business will be up and running in no time, adhering to the legal and regulatory requirements of the country.
Legal Structures of the Company
Formation and management of foreign businesses are governed and regulated by the Foreign Business and Investment Law of 1974, the Commercial Register Law and the Commercial Companies Code of 1974. Under the prevailing Foreign Business and Investment Law in Oman, foreign companies may opt for the following business structures.
- Limited Liability Company (LLC)
- Branch Office
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Partnership Company
- Holding Company
- Shareholding Company or Joint Stock Company
- Joint Venture
Limited Liability Company Formation in Oman
Similar to other countries in the Gulf region, the simplest form of company in Oman is a Limited Liability Company (LLC). Not only an LLC is the simplest form of business incorporation, but also the most suitable for start-up businesses. In an LLC, capital is divided into equal shares and is retested under the Commercial Register with Ministry of Commerce and Industry. In addition to this, an LLC should also get affiliation from the Chamber of Commerce and Industry in Oman.
Helpline Group’s company formation service includes all these requirements, ranging from documentation and notarization of original documents to hiring CPA and local attorneys, and filing of the application. An LLC must register a unique name with the Commercial Register. The following features are applicable for LLCs in Oman.
- Foreign owners shall not have more than 70% of the total shares issued in the LLC in Oman
- It is mandatory to have a citizen of Oman to have at least 30% ownership in the business
- Citizen of the United States of America or the GCC member countries can have 100% ownership of LLCs in Oman
- A minimum number of two shareholders are needed
- LLC shall not proceed with public-subscription of shares or increase in investment
- Minimum share capital required for Omani LLC is OMR 20,000 for Omani ownership, and 150,000 for foreign ownership
- LLCs in free zones can enjoy tax-free benefits
- A foreign manager to handle daily management of LLC is mandatory
General Partnership Company in Oman
A General Partnership Company in Oman is formed with at least two or more persons. Although a form of partnership, the liability of the partners towards the business is unlimited, which means, any liability resulting from the conduct of business can lead to the fullest extent of the partners’ personal worth as well. A General Partnership Company in Oman must be registered with the Commercial Register. The following requirements must be noted.
- Company name of a General Partnership Company in Oman must contain the name of one or more partners
- Work to be performed by each member shall be mentioned in the partnership contract
- General Partnership Company in Oman may come to cease when a new partner is added or an existing partner leaves the agreement or partnership
- General Partnership Company in Oman may also come to a cease when the partnership term ends.
Limited Share Partnership Company in Oman
In a Limited Share Partnership Company in Oman, there is two type of partners – a general partner and a limited partner. General partners are involved with all activities in the business, including daily management, while a limited partner’s role is limited to contributing to the capital. While a general partner has unlimited liability to the business, depending on the effect of his decisions on the business and its liability, a limited partner’s liability is limited to the extent of his investment in the business.
Similarly, a Limited Share Partnership Company in Oman do not have any limitations in terms of the maximum number of partners. Similar to any other partnership business, a Limited Share Partnership Company in Oman must be registered with the Commercial Register. It is mandatory for a Limited Share Partnership Company in Oman to have a minimum of two partners, including one general partner and one limited partner.
Holding Company Formation in Oman
A Holding Company in Oman is usually formed to invest in other businesses. Otherwise known as a Joint-Stock Company, a Holding Company in Oman is used for controlling financial and administrative decisions of subsidiary companies. A Holding Company in Oman can have a maximum of 51% share in subsidiary companies. It is a mandatory requirement for a Holding Company in Oman to include “Holding Company” at the end of the company name. It is also a mandatory requirement in Oman for Holding Company to have a minimum capital of 2 Million Omani Riyals. Some benefits of Holding Companies in Oman are
- A Holding Company in Oman may engage in managerial decision-making in subsidiary companies
- A Holding Company in Oman may make investments in shares, securities, or bonds
- A Holding Company in Oman can offer and lend money to subsidiary companies
- A Holding Company in Oman may own the rights of the patients and trademarks owned by its subsidiary companies
Shareholding Company or Joint Stock Company in Oman
A Shareholding Company or a Joint Stock Company in Oman is a company structure where share capital is distributed over a fixed number of shares, worth no less than RO 1 (Rials Omani One only). The minimum required capital for a Shareholding Company in Oman is RO 500,000 for a Closed Omani Joint Stock Company (a company that do not offer public shares). On the other hand, for a General Joint Stock Company that offer shares to the public, the minimum share capital required is RO 2,000,000 (Two Million Omani Rials).
All Shareholding Companies in Oman are subjected to the Muscat Securities Market Law, and should also register under the Commercial Register. As a mandatory requirement, a Shareholding Company in Oman should have a minimum partners of three, and should seek prior approval from the Ministry of Commerce and Industry in Oman before incorporation. Board of Directors are also mandatory for such Shareholding Companies in Oman who should work as per the contract agreement with the shareholders.
Joint Venture Formation in Oman
A joint venture in Oman is usually created between two parties (usually businesses) to achieve a common goal in business. It is usually formed by businesses to pursue a common interest or goal, such as research, or creating a new product or service etc. However, there is no limit set by the Omani law concerning the maximum number of partners. It is also not mandatory for a joint venture to register in Oman.
However, they require clear definition and clarification on rights and responsibility of every party involved in the Joint Venture, and how it distributes profits or losses. A joint venture is only valid up to the term mentioned in the contract or agreement between the parties.
Representative Trade Offices in Oman
Representative Trade Offices in Oman are used by companies to handle their business requirements in Oman, without registering an entire business in the country. A parent company may use a Representative Trade Office in Oman to promote their products and services, or facilitate market research and activities done by the parent company. Unlike other forms of businesses, Trade Offices in Oman have many restrictions on the tasks they can perform.
For example, a Trade Offices in Oman cannot offer credit or make offers, and it is mandatory requirement for a Trade Offices in Oman to appoint an authorised manager to work in the office. Helpline Group has its services designed to handle these requirements for Trade Offices in Oman.
Commercial Agencies in Oman
It is a mandatory requirement for foreign businesses to have a commercial entity operating in Oman to handle its activities. Unless it is a government contract or an activity associated with a government project, there must be an agent working in Oman, for the foreign business. Such commercial agents must be registered under the ministry of Commerce and Industry and they shall have the responsibility of handling commercial activities of a company in Oman. For more information on how commercial agencies operate in Oman, please speak to a Helpline Group consultant today.
Branch Offices in Oman
A company may establish a branch office in Oman and conduct their business activities without investing any share capital into the business, or appointing a local partner, as long as such operations are linked to government contracts and government controlled activities or projects. It means a parent company can have full control over the branch office and its activities in Oman.
However, it also means the parent company is wholly liable for any liabilities made by the business in the country. In addition to this, the validity of a branch office in Oman is only valid up to the term of the contract of the project. A brand office’s activities must reflect and is limited to the activities carried out by the parent company. Contact Helpline Group today for more information.
Helpline Group Company Formation Services
Other Factors You Should Consider for Business Formation in Oman
Helpline Group is ideally placed to handle all your real estate needs, whether they are commercial or business related. The Omani Capital Market Authority has recently issued changes in policies and practices, which may have a larger impact on foreign investors and businesses. Similarly, there are restrictions concerning real estate activities conducted in Oman. Hence, one must have a clear understanding of these conditions and policies before making a business move. Speak to Helpline Group today to know more about these conditions and policies.
Although Oman follows a flexible visa system, following the processing and ensuring every documentation is in order is a pre-requisite to ensure approval. Since there are numerous visa processes and provisions, you must make a decision to opt for the most suitable option. As the validity and applicability of these visa options may change from one to another, choosing the most appropriate visa can have a strong effect on your business opportunities and activities. Helpline Group has dedicated visa processes and activities that can support your Visa requirements to Oman.
Taxation of Companies Registered in Oman
Oman has a very favourable tax policy. The corporate tax on income in Oman is only 15%, which is highly reasonable in comparison with most global regions. Helpline Group is strategically placed in Oman to advise on best possible strategic decisions that may reduce the tax overheads on the business, while not evading mandatory tax requirements in the country.
Every foreign business may have a requirement for importing or exporting. Oman has different requirements when it comes to import and export activities. For example, in order to clear goods to Oman, a foreign entity shall require:
- Commercial registration and form of activity – if there are no such forms, then explicit permission is needed
- An affliction certificate issued from the Chamber of Commerce and Industry in Oman
- A valid certificate issued by the manufacturer
- A valid quotation of the products and packing list
- Any bills related to the shipment and other documents
Get in touch with Helpline Group today to take your goals further.
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