Do you have a strong international business? Are you planning to expand it abroad? As a foreign investor, you may be considering Oman as your next business destination so you can leverage its strategic location, investment-friendly environment, free zones, and much more. Starting a business in Oman is a highly advantageous and lucrative venture, especially when done strategically.
Are you wondering whether or not you can actually start a business in Oman as a foreigner? Is foreign ownership allowed? What are the requirements for business setup? And what is the overall process like? Our guide about starting a business in Oman for foreigners answers these questions and provides you valuable information, walking you through your investor journey step by step.
Can Foreigners Start a Business in Oman?
The first thing you need to know is whether or not you, as a foreign investor, can do business in Oman. You already have your business idea, now you must know if you can execute it there.
So, can foreigners do business in Oman?
Yes, foreigners can start a business in Oman to carry out business activities as long as they are not officially limited to local investors. Those restricted activities include traditional crafts, cultural products, retail and everyday community services, and real estate—just to name a few.
Read more: Doing Business in Oman: Why It’s a Smart Investment
In addition, Oman has been starting initiatives that encourage international investment, with Oman Vision 2040 being the prime example of this, as it is focused on diversifying the economy by developing various sectors like technology, green energy, and logistics and transportation, among others.
Further details: Exploring Business Opportunities in Oman: Growth Through Vision 2040
Can foreigners own 100% of a company in Oman?
Yes, foreigners can generally own 100% of a company in Oman, as they do not need an Omani partner to establish a business. However, some business activities may be subject to some foreign ownership restrictions or additional requirements.
Now that you know that starting a business in Oman for foreigners is possible and that foreign ownership is allowed, what is it that you need to establish your company in the Sultanate?
Requirements for Starting a Business in Oman as a Foreigner
Your investor journey began with the idea, and then it moved to determining whether you could actually establish and own the business in Oman as a foreigner. Now, you get to the stage where you need to understand the requirements for starting a business in Oman as a foreigner:
- Identification & Personal Documents: These include passport copies of all foreign shareholders and directors, Oman ID cards, a certified Police Clearance Certificate, and others.
- Company-Related Information & Documents: Including but not limited to trade name reservation, constitutive documents, and attested parent company documents if applicable.
- Sector-Specific Approval & Permits: Some additional documents are required depending on the business activities you are doing in Oman.
- Premises-Related Requirements: A registered and signed commercial lease agreement is mandatory. If you are running any specialised property, you may need to provide further approvals.
- Visa/Residency Requirements: If you plan to relocate, then you will need the appropriate visa and residency status to legally live and work in the country.
More information: Oman Golden Visa: Requirements, Benefits, and How to Get It
Further insights: Oman Work Visa: Requirements, Benefits & How to Apply
These are the general requirements you need to provide and fulfil for starting a company in Oman for foreigners.
How Can Foreigners Start a Business in Oman?
Now comes the key question you may have had from the start of your investor journey: How can foreigners start a business in Oman? Learning about the process makes it easier and smoother. So here are the steps of starting a company in Oman for foreigners:
1) Choose the Business Activity
First, you need to choose which business activities your company will be doing in Oman. This is a key decision in your business setup journey because your chosen activities will determine the licences and approvals you need to obtain later on.
Additionally, companies are generally expected to operate within their approved scope, so you should carefully choose the activities that accurately reflect your business. You will submit this information through an online application in a later step.
As a foreign investor, keep in mind that some Omani markets are more saturated than others. So, conducting market research is crucial for making the right decisions and investments. Discovering the opportunities provided under the umbrella of Oman Vision 2040 is a good starting point.
2) Check Foreign Ownership Eligibility
The next step is to check whether your chosen activity is open to foreign ownership in Oman. First, you should find the activity’s assigned code through the Oman Business Platform (formerly Invest Easy).
Then, compare it against the activity codes listed in Ministerial Decision No. 209/2020, which outlines activities prohibited for foreign investment, and Ministerial Decision No. 435/2024, which later added further restricted activities.
Both decisions are available through the Ministry of Justice and Legal Affairs’ official legislation database. Also note that these lists are available in Arabic only, so foreign investors may need the assistance of an Arabic-speaking professional.
3) Select the Proper Corporate Structure
The business or corporate structure refers to the legal framework that determines how a company is operated, owned, taxed, and more. There are several corporate structures to choose from, but your decision should primarily be based on two key factors: Personal Liability and Ownership.
With liability, you may want to choose a structure that protects your personal assets and views you and your company as separate entities. Such limited liability can help protect your personal assets in cases of disputes, debts, or financial challenges.
In terms of ownership, some structures allow for one owner, giving you greater control over the business and its decisions, while others include more than one owner, allowing responsibility and ownership to be shared.
Foreign investors located outside of Oman and wanting to run their companies from abroad should consider what their chosen structure requires in terms of local representation, appointing managers, and the need for professional support for specific administrative matters.
Learn more: Choosing The Right Business Structure in Oman
Further reading: LLC Company Setup in Oman: Step-by-Step Process
Explore details: How to Set Up a Branch Office in Oman: Step-by-Step Guide
4) Choose between the Mainland or Free Zones
Starting a company in Oman for foreigners requires you to choose the exact location for your business, whether on the mainland or in the free zones. Your decision should consider the following factors:
- Target Market: If your target market is in Oman, the mainland is best for you. But if you are planning to export goods, free zones are better suited.
- Business Activities: Free zones in Oman offer sector-specific advantages, which are ideal for some business activities.
- Tax Incentives: Free zones offer tax holidays and major incentives that companies can benefit from, especially smaller businesses.
The location of your business will determine where the company is registered and which authority oversees its registration.
5) Prepare Required Documents
At this point of starting a business in Oman for foreigners, you are finished with the decision-making steps and begin with identifying, collecting and preparing the needed documents. That said, foreign investors may need to authenticate documents issued outside of Oman and translate them into Arabic. And keep in mind that free zones can require additional documents.
More details: Company Setup in Oman: A Regulatory Compliance Guide for Foreign Investors
6) Reserve Your Trade Name & Begin Company Registration
At this stage of company formation in Oman for foreigners, you have identified your business activity, ownership rights, corporate structure, and location. You will submit all this information now through one application to complete your foreign company registration in Oman through the Oman Business Platform online portal. Part of this application is the name trade reservation as well.
Practically speaking, you will access the portal and create an account, provide the needed business information, and upload the required documents. Then, you select the Trade Name Reservation legal form to fill it out. Your chosen name should be unique, appropriate for your business, and compliant with the applicable rules.
After the name is approved and registration is complete, you will receive a Commercial Registration (CR) number that will be used for subsequent business setup procedures.
Want to know more about company registration in Oman?
Learn now: Company Registration in Oman: Steps and Timeline
7) Secure a Tenancy Agreement
As part of business setup in Oman for foreigners, you must rent a property suitable for your business activities, whether an office, warehouse, showroom, shopfront, or another type of property. This secures the lease agreement, which must be signed by the property owner and duly attested by the relevant municipality.
This is essential to the setup process, as it provides a valid address for your business that can be used in legal proceedings, official correspondence, and safety compliance.
8) Obtain Relevant Licences & Approvals
Foreign investors can now obtain any additional permits, approvals, and licences required for their business activities and sector by coordinating with the relevant authorities. Some industries that may require these include, but are not limited to, healthcare, tourism and hospitality, telecommunications, and financial services.
Read now: Trade Licence in Oman: Types, Cost, and How to Get It
9) Complete Tax Registration
Foreign investors must register their companies with the Oman Tax Authority through its electronic Tax Portal and complete corporate income tax registration using the Taxpayer online service. This registration is mandatory and must be completed within 60 days of company registration, as it is essential for regulatory compliance and business continuity.
10) Arrange Visas & Residency if Applicable
Starting a business in Oman for foreigners does not automatically mean that they live and work in the Sultanate, as they can run the company from abroad. But if you do want to relocate to Oman, you must apply for a visa and residency to be able to work and live there legally.
Generally speaking, these processes require you to apply for the appropriate visa through the Royal Oman Police (ROP) eVisa portal, provided you meet the relevant requirements and company conditions. Once the visa is approved, you can proceed with the necessary procedures to obtain your residence permit.
11) Complete Post-Registration Requirements
At this point, you have successfully completed business setup in Oman for foreigners, and now can move into the post-registration phase where you complete all operational requirements so you can commence business activities. These include opening a corporate bank account, compliance with Omanisation quotas, and setting up accounting and payroll systems, among others.
For ongoing compliance and support, consider corporate and PRO services in Oman.
Now that you know how foreigners can start a business in Oman, what are some challenges that they may face?
Challenges of Starting a Business in Oman as a Foreigner
As a foreign investor planning business setup in Oman, you may face the following challenges:
- You may find it difficult to identify the best opportunities for your company in Oman simply because you are unfamiliar with the local economy and market.
- It can be challenging to find reliable partners and service providers when entering a new, foreign market.
- The Omani work culture can be vastly different from what you are accustomed to, so you will take some time to adjust properly.
- Omanisation quotas, requiring you to hire a certain number of Omani nationals, can be tricky. A professional partner for corporate services can handle these quotas on your behalf.
- Managing your business remotely can be challenging, but not if you appoint the right managers and collaborate with the right partners that handle administrative tasks for you.
Below are more details about foreign investment in Oman.
FAQs about Foreign Investment in Oman
Here are some commonly asked questions and their answers:
Can I change my business activity after registering my company in Oman?
Yes, you can change your chosen business activity online through the Oman Business Platform, even after registering your company. However, you cannot proceed with operations until the updated activity is approved.
Can a foreign investor start a business in Oman remotely?
Yes, you can start a business in Oman remotely, thanks to the government’s digitalisation efforts that have made many company setup procedures available through the Oman Business Platform. However, certain procedures may still require you to be physically present in Oman.
Can I start a business in Oman if I am already operating a company abroad?
Yes, you can start a business in Oman even if you already operate a company abroad. You can either establish a new company in Oman or, where applicable, register a branch of your existing foreign company.
How much does it cost to start a business in Oman?
The cost varies depending on the business activity, corporate structure, company size, required licenses, government fees, and other factors.
Starting a Business in Oman for Foreigners with Bondoni
Starting a business in Oman is best approached by partnering with a local partner for company formation, such as Bondoni. With more than a decade worth of experience, Bondoni’s team walks you through all the steps of business setup in Oman—starting from choosing the right corporate structure through registration and to post-registration procedures.
Not only that, but Bondoni is your trusted partner for corporate services, handling your backoffice operations while you focus on growing your business.
Bondoni provides its services to companies only, and not individuals, helping them establish their presence in Oman. Bondoni’s expertise, combined with that of their local professional network, will surely get you where you want to be in the Omani business landscape.
Contact us to begin.