Oman is committed to expand its business exchanges outside the oil and gas sectors, opening the door for more foreign investors. If you are looking to expand your investments and start a new business in Oman, then setting up an LLC company might be the right choice for you.
Since the introduction of the new Foreign Directors Investment (FDI) law there are two options to setup an LLC in Oman.
The established 70 to 30% sponsorship option remains popular as it provides certainty to have a local commercial partner available that offers different services that are required by the international investor.
The newly introduced 100% Foreign Ownership option is an exciting alternative for those who do not require local expertise. As this is a new law, we look forward to receiving the executive regulations to detail the new parameters which could include no minimum share capital and other benefits.
Read on for a complete guide on how to set up a 100% Foreign owned LLC company in Oman, here is how you should start.
How to Form a 100% Foreign Ownership LLC
- 100 % legal shareholding for foreign investors in most sectors.
- Foreign company needs to be at least 3 years old. (Individuals have different criteria).
- A minimum of one shareholder from the International investor. (law changed in April 2019).
- There is no minimum capital requirement. The Ministry of Commerce and Industry (MOCI) may request the accounts and balance sheets of the parent company, depending on the sector, grade of LLC and the reasons for establishing a local LLC.
- Provision of audited financial statements for three years and bank statements for the minimum of 6 months.
(offices, warehouses etc.). It is mandatory to lease a property and to have a Municipality certificate before opening a bank account.
A bank account
is set up after completion of company registration and receipt of a lease and municipality licence.
Each business must employ a minimum number of Omanis depending on the sector. Employees can only be recruited after registration with the Ministry of Manpower (MOMP)
The whole process can take as long as several months or as short as a few weeks depending on how well organised and committed you are to launch your business and whether you wish to hire professionals or do it alone.