Opening a business in Oman requires you to choose between registering your company in Oman’s mainland or free zones—a decision that will impact your business structure, activities, and potential growth. Company registration in Oman, therefore, comprises different steps, procedures, and requirements for each option. A solid understanding of how to register a company in Oman helps foreign-owned companies navigate through this process with ease and confidence.
Continue reading to learn more about company registration in Oman for mainland and free zone companies—with a special focus on LLC and SPC structures. This guide will also emphasise the importance of working with professionals in business setup in Oman, like Bondoni’s team, for a more streamlined process.
Understanding Mainland and Free Zone Companies: Definitions and Benefits of Each
Before registering your company in Oman, you’ll need to decide between setting up in the mainland or one of the free zones—each option offers unique benefits that fit different business goals and operational needs. To help you make an informed decision, below is the definition of each:
Definitions
The Omani mainland and free zones are two different types of jurisdictions where foreign-owned businesses can be registered. On the one hand, the mainland is the area governed directly by Omani laws and regulations under the Ministry of Commerce, Industry and Investment Promotion (MoCIIP). On the other hand, free zones are special economic areas that are specifically designated to attract foreign investment through business-friendly policies and incentives.
Benefits of Registering a Company in Oman’s Mainland
Investors registering an LLC or an SPC company on the mainland get full ownership and control over their business. Meaning that they can own 100% of the business without the need for a local partner. Another advantage of registering an LLC or an SPC company in Oman’s mainland includes operational flexibility, indicating that the company can engage in a wide variety of business activities.
Additionally, setting up a company in Oman’s mainland comes with the advantage of no minimal capital requirement. It also offers flexibility in terms of recruiting and hiring, allowing businesses to hire both local and expatriate employees—along with simplified access to banking services and operational support.
Benefits of Registering a Company in Oman’s Free Zones
Registering a company in Oman’s free zones has its own set of advantages. These include tax incentives that ultimately improve profitability—some of which are corporate tax exemptions, 100% repatriation, and no import/export duties.
Moreover, companies registered in Oman’s free zones enjoy greater operational flexibility. This includes easier access to manufacturing and warehousing facilities, along with streamlined import and export processes that help reduce delays and improve overall efficiency. Additional benefits include easy access to major ports and logistics hubs, along with modern, reliable infrastructure that supports efficient business operations.
One of the main restrictions in free zones is that the companies registered there are not permitted to trade with the companies in the mainland without paying sales tax and ultimately corporate tax if the number of trades is deemed too frequent by the government.
Key Differences Between Free Zone and Mainland Companies in Oman
Below are the main differences between free zone and mainland companies in Oman, helping you understand the benefits and limitations of each before registering a company in Oman:
Aspect | Mainland Company | Free Zone Company |
Authority | Registered via the Ministry of Commerce, Industry & Investment Promotion (MOCIIP). | Registered through free zone authorities. |
Tax Benefits | Pays normal corporate tax and duties. | Often exempt from tax and import/export duties. |
Business Scope | Broader scope includes retail, services, construction, manufacturing, consulting, and government contracts. | Often limited to logistics, manufacturing, tech, and international trading; local trade needs an agent. Export does not include trading with companies in Oman “Mainland” |
Initial Capital Requirement | Often no minimum capital is required. | Varies by free zone. |
Company Registration in Oman: How to Register a Company in Oman’s Mainland
Below are the steps of a company’s registration in Oman’s mainland:
1. Choose the Right Business Structure
Your chosen company structure will determine and define shareholders, authorised signatories, company grade, and business activity according to Omani regulations.
2. Select Your Business Activity
Determine the nature of your business activities and ensure they comply with Omani regulations. Notably, about 88% of business activities on the mainland allow 100% foreign ownership, with specific licences and permissions required for each.
3. Choose and Reserve a Name
Choose a unique business name that complies with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) standards. The name reservation process, as managed by Bondoni, ensures the chosen name meets all requirements. Company names must be translatable into Arabic if the owner is an individual.
4. Prepare the Needed Documents
Gather all necessary documents, such as apostilled or attested papers, passport copies, and business plans, to ensure a smooth and efficient documentation process.
5. Licence Application
Submit the commercial registration and relevant licence applications to the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP). Following the official procedures helps ensure a smooth and timely approval process.
6. Lease an Office
A physical office location in Oman is required by law. It is important to secure an office space that meets your specific needs and complies with the local standards and official regulations.
7. Open a Corporate Bank Account
The next step of company registration in Oman’s mainland is to open a corporate bank account with a reputable bank in Oman. This requires submitting the necessary documents and complying with bank regulations.
8. VAT Registration and Support
Companies that meet the required revenue threshold must register for VAT in Oman. It is essential to adhere to the relevant regulations throughout the entire process.
9. Visa Processing
Residency and work visas must be applied for by staff and their dependants in accordance with immigration regulations to ensure full compliance.
Company Registration in Oman: How to Register a Company in Oman’s Free Zones
The process of registering a company in one of Oman’s free zones is different than it is for companies in the mainland. That being said, the following points are the exact steps of how to register a company in Oman’s free zones:
1. Develop a Business Plan
The most essential step of company registration in Oman’s free zones is to have a thorough business plan that covers your company’s objectives, business activities, and growth goals.
2. Choose a Free Zone
Oman has four free zones: the Salalah Free Zone, the Sohar Free Zone, the Duqm Special Economic Zone, and the Al Mazunah Free Zone, and each one of them offers unique benefits and incentives. Bondoni provides you with valuable information and insights on each area, assisting you in making the right decision for your business goals.
3. Prepare the Required Documents
The next step of company registration in Oman is to prepare the needed documents, which typically include passport copies, proof of residence, and the detailed business plan—already developed in step one. Bondoni’s team of experts will help you prepare and submit those documents to fulfil all regulatory requirements.
4. Registration and Licensing
Register your company with the chosen free zone authority and get the licences you need for your business operations and activities. Bondoni streamlines these procedures, assuring efficient and timely registration.
5. Set up the Office
Since you registered your company in one of Oman’s free zones, your office location must be within your chosen free zone. Choose the right office space for your needs and set up any other facilities you may need.
6. Streamline Operations
After completing company registration in Oman’s free zone, you can proceed with the recruitment and hiring process, as well as preparing logistics and other operational procedures to ensure smooth business activities.
Why Choose Bondoni for Company Registration in Oman
Choose Bondoni today to register your company in Oman. Bondoni’s team of experts provides you with unmatched experience in the Omani business landscape and regulatory environment, ensuring smooth registration procedures. With eight years of experience, Bondoni will help you choose the right business structure and offer you consultations and post-registration services for smooth setup and operational processes.
Contact Bondoni today and receive the best business solutions, tailored to your niche needs.