There are different business options to do business in Oman depending on your type of business.
Whether you have won a long-term contract or are you establishing a business for strategic expansion, we can help. The options are:
- Mainland Limited Liability Company (LLC). This is the most popular. If you want to set up a legal entity which allows you to trade with minimal restrictions, employ your own team and have a bank account in Oman the LLC is the best option to consider.
- LLC (Free zone). There are 4 four Free-zones. This is an option for businesses who require limited trading options in Oman (e.g. import/export, manufacturing and warehousing)
- LLC (Technology Park). Knowledge Oasis Muscat (KOM) provides benefits for ITC companies.
- Branch Office. A foreign company can set up a branch office whilst delivering a specific government contract. No other business can be done within this framework.
- Representative Trade Office. The office is able to promote and market the sale and/or production of their products and facilitate contracts in Oman. It can also be used to promote an international business as a “shop window “but it is not permitted to trade.
The Mainland LLC is the most popular and the prerequisites and processes are outlined below. (For more information, download a business setup guides – click on Business setup Guides.
Pre-requisites to set up a Mainland LLC for an International Investor.
Although the new FCIL law has been published it is likely that the details of the law (executive regulations) may change over time. However, the points below outline the prerequisites to establishing an LLC.
- Shareholders – 100 % legal shareholding for most foreign investors including USA or GCC companies.
- A minimum of one shareholder from the International investor. (law changed in April 2019)
- Financial track record. Provision of audited financial statements for the last 1-3 financial years and bank statements for the minimum of 6 months.
- Minimum Capital Requirement. There is no minimum capital requirement. Please note that The Ministry of Commerce and Industry (MOCI) may request the accounts and balance sheets of the parent company, depending on the sector and the reasons for establishing a local LLC.
- Workplace accommodation (offices, warehouses etc.). It is mandatory to lease a property and have a Municipality certificate before opening a bank account.
- Bank Opening. A bank account is set up after completion of company registration and receipt of Municipality certificate.
- Omanisation targets. Each business must employ a minimum number of Omanis depending on the sector.
- Recruitment. Employees can only be recruited after registration with the Ministry of Manpower (MOMP)