If you are looking to expand your business to the Middle East, then Oman is the perfect place to start. Here is a list of business entities in Oman that will help you select the best structure for your company.
- Limited Liability Company (LLC)
This type of business entity is best suited for foreign investors that wish to start a business in Oman. According to the Ministry of Commerce and Industry (MOCI), foreign investors need to follow certain guidelines to build their new business.
- 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.
- It 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)
- Free Zone Company
Oman Free Zone Companies are a great opportunity for manufacturing or trading companies looking to expand their business to the Middle East Market. Companies established in Oman Free Zone can be 100% foreign owned, they can do business with local customers, and have a low or no minimum paid capital.
Another advantage of Free Zone Companies is that investors are not required to pay income tax, custom duties and only 10% of the employees need to be of Omani nationals.
- Joint Stock Company (SAO)
Investors who are looking to get involved to increase investments or raise capital then a Joint Stock company is the right choice for you. In order to form a Joint Stock Company, you need to have a minimum of three shareholders including a Omani shareholder with 30% of the shares, at least 40% of the shares to be offered for public subscription, and a minimum share capital of OMR 2 million.
If you wish to start a Private Joint Stock Company which in return does not offer shares to the public, then you are required to have a minimum share capital of OMR 500,000 and a 30% Omani shareholding.
- Limited Partnership (LP)
A Limited Partnership Company is the best type of business entity for business owners who provide accounting, auditing and fiduciary services. A Limited Partnership Company should be registered under at least one general partner and one limited partner. The general partner is the only member allowed to manage the company and must be Omani or a GCC national.
- General Partnership (GP)
This type of business entity is perfect for GCC nationals in the accounting, auditing or fiduciary sector who are looking for a new business opportunity in Oman. A General Partnership company should have a minimum of one Omani or GCC national partners who have joint responsibilities for the company’s debt.
- Joint Venture (JV) – Distributor/Agency Agreements
This form of business entity is recommended for foreign investors searching for a short-term business project in Oman. A Joint Venture company is not a legal entity therefore it doesn’t require registration with local authorities. A Joint Venture company should be formed between two or more parties, they can be local or foreigner individuals or companies.