TFZ

19th Floor, Conrad Tower, Sheikh Zayed Road, Dubai, UAE

Oman Company Formation — TFZ

A stable Gulf base,
outside the Strait

Under the Foreign Capital Investment Law, foreign investors can now own 100% of their Omani company in most sectors.

With major ports at Sohar, Salalah and Duqm, growing tourism, mining, logistics and renewable energy sectors, Oman offers real opportunities for a long-term Gulf presence. TFZ makes it simple, transparent and fast.

Get Quote

100%

Foreign ownership under the FCIL

0

Minimum capital for most LLCs

15%

Corporate tax, no personal income tax

10 yrs

Investor Residency Programme

The Case for Oman

Why Set Up a Business in Oman?

100% foreign ownership permitted in most activities under the FCIL

No minimum share capital for most foreign-owned LLCs

Corporate tax of 15% with no personal income tax

Free trade agreement with the USA and access to GCC markets

Investor residency of up to 10 years under the Investor Residency Programme

Growing demand in logistics, tourism, mining, fisheries, renewables and ICT

Strategic Ports & Free Zones

Sohar
Salalah
Duqm
Khazaen
Knowledge Oasis Muscat
Entity Types

Types of Companies in Oman

LLC Most foreign investors One or more shareholders, 100% foreign ownership, no minimum capital for most sectors
SPC Single owners One shareholder with limited liability
Branch Companies with government contracts Usually linked to a specific contract with a government body
Rep Office Marketing and promotion Cannot conduct commercial sales
SAOC/SAOG Large businesses and listings Minimum capital OMR 500,000 (SAOC) or OMR 2 million (SAOG)
Free Zone Export, logistics, manufacturing Tax holidays and customs benefits in Sohar, Salalah, Duqm, Khazaen and KOM
The Process

Step-by-Step Oman Company Registration

Select your business activities

Confirm they are open to foreign investment.

Reserve the trade name

Through the Invest Easy portal of MOCIIP.

Submit the incorporation application

Along with the Memorandum of Association.

Obtain the Commercial Registration certificate
Register with the Oman Chamber of Commerce and Industry
Obtain Municipality licence and sector approvals

For example, Ministry of Tourism or Ministry of Health.

Lease an office and register the address
Register with the Tax Authority, Ministry of Labour and PASI
Open a corporate bank account
Apply for investor and employee residence visas

Through the Royal Oman Police.

Paperwork

Documents Required

Passport copies of shareholders and managers
Corporate documents of a parent company shareholder, attested and Arabic-translated
Proposed trade name and list of activities
Memorandum of Association (drafted by TFZ)
Office lease agreement
Bank capital certificate where a minimum capital applies
Duration

Timeline for Oman Formation

StageApproximate Time
Trade name reservation1 – 3 days
Commercial Registration & OCCI membership3 – 7 days
Municipality licence & sector approvals1 – 3 weeks
Tax, Labour & PASI registration1 week
Bank account opening2 – 4 weeks
Investor visa2 – 3 weeks
Total (typical)4 – 8 weeks
Budgeting

Cost of Company Formation in Oman

Figures shown are indicative, in Omani Rials. Exact fees depend on the activity grade and Chamber category.

Cost ItemIndicative Amount (OMR)Frequency
Commercial Registration fee100 – 200Annual
Foreign investment registration fee2,000 – 3,500One-time
Oman Chamber of Commerce membership50 – 500Annual (by grade)
Municipality licence50 – 200Annual
Office rent (small serviced office, Muscat)2,500 – 6,000Annual
Investor visa and residence card300 – 500Every 2 years
Labour clearance & work permit per employee200 – 300Every 2 years
TFZ professional feesQuoted on requestOne-time

No minimum capital for most activities. Certain activities still require OMR 150,000 or more, and some remain reserved for Omani nationals. TFZ confirms this before you proceed.

After Registration

Compliance Requirements in Oman

Corporate income tax 15% on net profit (3% for qualifying small businesses), annual return within 4 months of year end
VAT 5%, once taxable supplies exceed OMR 38,500 — quarterly returns
Withholding tax 10% on certain payments to non-residents, within 14 days of month end
Audited financial statements Required for most LLCs and all joint stock companies, annually
CR and licence renewal Renew Commercial Registration, OCCI and Municipality licence annually
Omanisation Minimum percentage of Omani employees by sector, monitored by Ministry of Labour
Social insurance & Wage Protection PASI contributions and approved bank transfers, monthly
UBO register Maintain and file beneficial ownership details on registration and on change

Personal income tax — coming in 2028

A 5% tax on individuals earning above OMR 42,000 per year is planned from 2028. TFZ will confirm implementation details as the rules are finalised.

Full Support

How TFZ Helps

Oman rewards investors who plan carefully. TFZ combines local knowledge with regional structuring expertise to set up your Omani company the right way from day one.

Activity and ownership eligibility check under the FCIL
Invest Easy registration, MOA drafting and all government approvals
Mainland and free zone comparison to select the best option for your business
Office solutions in Muscat, Sohar, Salalah and Duqm
Bank account introductions and visa processing
Annual renewals, tax, VAT, audit and Omanisation compliance support
Frequently Asked Questions

Everything You Need to Know About Oman Formation

From ownership and capital rules to taxes and choosing mainland vs free zone, here are answers we hear most.

Yes. Under the Foreign Capital Investment Law, foreign investors can fully own companies in most activities. A limited list of activities remains reserved for Omani nationals.

No general minimum applies for most foreign-owned LLCs. Some activities still require a minimum capital, which TFZ will confirm for your activity.

The Commercial Registration itself can be issued within a week. Including approvals, office, bank account and visas, most clients are fully operational in 4 to 8 weeks.

Corporate income tax is 15%, VAT is 5%, and withholding tax of 10% applies to certain payments to non-residents. There is currently no personal income tax, though a 5% tax on high earners is planned from 2028.

Mainland is best if you want to sell directly in the Omani market or work with government. Free zones such as Sohar, Salalah and Duqm suit export, logistics and manufacturing businesses that want tax holidays and customs benefits. TFZ can help you decide.

Fees, timelines and rules quoted on this page are indicative, change from time to time and depend on the authority, licence type and activity chosen. TFZ confirms exact figures in writing before any engagement begins.

Talk to TFZ Today

Get a free consultation and a written quotation for Oman company formation.

Get Quote