Setting up a company in Oman is a highly attractive option for international businesses planning to expand into the Gulf region. Oman is unique for its stable and investment-friendly environment, especially considering its strategic location and Vision 2040, which is the national programme that focuses on economic diversification and other economic, cultural, and social goals.
However, the process of opening a business in a foreign country can raise many questions regarding legal and regulatory requirements, company structures, and registration procedures. In this article, we provide you with an overview of the process and the most common questions about setting up a company in Oman, offering all foreign businesses clarity and confidence in their growth within the Omani landscape.
Setting Up a Company in Oman: General Overview of the Process
Setting up a company in Oman begins with selecting the right corporate structure for your business and collecting the required documents. Following that, you can register your company in Oman, obtain a tenancy agreement, activate trade licences, and register with the relevant authorities according to your business activities.
The company is officially incorporated after completing these five steps, which take around 15 to 20 days. Then, you can proceed with opening a corporate bank account—a process that can last up to four weeks. Finally, you can get corporate PRO services from Bondoni to facilitate operations and regulatory compliance.
Setting Up a Company in Oman FAQs: Answering the Most Common Questions
Below are some of the most common questions that international companies have regarding the company setup process in Oman.
How long does business registration in Oman usually take?
The process of setting up a business in Oman can take up to two months without the help of experts. However, when working with specialists like Bondoni, the time required varies depending on the teamwork with each client.
After the client has returned all the correctly completed (and attested) documents, the registration takes between 1 and 3 days on average. After obtaining the tenancy agreement, the incorporation can take between 5 and 10 days depending on the trade licences and the parent company’s origin.
At Bondoni, we prioritise efficiency and transparency, providing realistic timelines and regular updates throughout the process.
What types of companies can foreign investors establish in Oman?
Foreigners can set up several types of businesses in Oman, including a limited liability company (LLC), a sole proprietorship company, a free zone company, a joint venture with an Omani partner, a branch office, and a representative trade office.
Can foreigners own 100% of a business in Oman?
Yes, Oman allows 100% foreign ownership in most sectors under the 2020 Investment Law, including both mainland and free zones. 88% of the activities come under 100% foreign ownership, and the rest of it is dedicated to local Omani companies that include consultancy-related businesses such as management consultancy, engineering consultancy, accountancy and legal services.
What documents are required for company registration in Oman?
The type of business entity you choose determines the documents required for company registration in Oman. Those documents typically include a memorandum and articles of association, a tax registration certificate, shareholders’ visas and passports, a Chamber of Commerce and Industry affiliate certificate, a certificate of initial deposit, identity cards for the shareholders, and the company registration form.
What are the capital requirements for setting up a company in Oman?
The initial capital required for setting up a company in Oman varies according to the business structure. Although there is no minimum capital requirement to set up LLCs/SPCs, the authorised minimum capital required for each business structure differs. Bondoni can provide guidance based on your chosen business structure.
Can I open a corporate bank account before registering my company in Oman?
No, you must complete company registration and get a Commercial Registration (CR) certificate before opening a corporate bank account in Oman.
What are the benefits of setting up a company in Oman’s free zones?
Setting up a company in Oman’s free zones offers benefits like 100% foreign ownership, long-term tax exemptions, full profit repatriation, and customs duty waivers as long as the companies do not trade with companies in “Mainland Oman”.
How do I hire employees and comply with labour laws in Oman?
Companies must register with the Ministry of Labour, get clearances, and obtain work visas. They must prioritise Omanis to meet Omanisation quotas.
Omanisation is a government policy aimed at increasing the employment of Omani nationals in the private sector. You will need to meet specific Omanisation targets, which vary from one industry to another. Bondoni provides Omanisation and HR services to help businesses comply with these regulations.
What is Tawteen?
Tawteen, which translates directly to “localisation,” is a strategic initiative led by the Omani government to promote Omanisation—the employment of Omani nationals across various sectors, particularly in the private sector. This initiative aligns with Oman’s Vision 2040, aiming to create a sustainable and diversified economy.
Tawteen will now play a key role in recruitment and hiring employees, as it will facilitate hiring for international companies operating in Oman and also serve as a platform for applying to jobs overseas.
The Ministry of Labour (MoL) has announced that all companies operating in Oman must register on the national Tawteen platform. As part of this regulation, the platform will be used to process labour clearances and visa requests for employees. Companies are required to register immediately to remain compliant and ensure the continuity of their employee-related processes.
What support services are available for foreign investors in Oman?
One-stop shops like Bondoni provide all the services you need for setting up a company in Oman, including company registration, opening a corporate bank account, HR & Omanisation services, document renewals, Visa and corporate immigration services, and pre-registration and post-registration services for the new company. Discover Bondoni today to get in touch with experts.