Yes, Oman allows 100% foreign ownership for businesses. This came after the new Foreign Capital Investment Law (FCIL) RD 50/2019 that was passed in January 2020, which allows international organisations and entrepreneurs to invest in Oman with 100% foreign ownership. Therefore, starting a business in Oman for foreigners is highly advantageous.

Although over 80% of Oman’s trade licenses allow 100% foreign ownership, starting a business in Oman for foreigners still requires local partners or sponsors in certain sectors, such as consultancy, accounting, legal services, and other professional fields.

Foreigners can register several types of businesses in Oman, including the following:

– Limited liability company (LLC)
– Sole proprietorship company
– Free zone company
– Joint venture with an Omani partner
– Branch office
– Representative trade office

Registering a company in Oman requires submitting several documents, which depend on the type of business entity you want to set up. The common ones include:

– Memorandum and Articles of Association
– Tax registration certificate
– Shareholders’ visas and passports
– Chamber of Commerce and Industry affiliate certificate
– Certificate of initial deposit
– Identity cards for the shareholders
– Company registration form

Yes, doing business in Oman requires a physical office. After successfully registering your company with the Ministry of Commerce and Industry and obtaining the Commercial Registration, the next step is securing office space and acquiring a lease agreement. This is essential for applying for the company’s municipality (trade) license and, later, for opening a bank account.

The size and type of office—whether a serviced office or a traditional office—will depend on your business needs. Your choice will also determine the number of staff you can accommodate, and certain business activities may require specific office types and locations.

The LLC and SPC structures in Oman differ mainly in the number of shareholders. An SPC has a single shareholder, whether an individual or a company, while an LLC requires two or more shareholders.

Businesses in Oman are subject to various taxes and fees once registered. However, it is important to note that Oman follows a relatively business-friendly tax regime compared to many other countries. Here are the main taxes and fees applicable to businesses in Oman:

– Corporate Income Tax: The corporate tax baseline for all businesses is 15%. There are exceptions, which include tax holidays for free zone sectors and reduced taxes to incentivise SMEs.

– Withholding Tax: Withholding tax may apply to payments made to non-residents, including dividends, interest, royalties, and fees for technical services. The withholding tax rates baseline is 10% but varies depending on the nature of the payment and the applicable tax treaties.

– Customs Duties: Customs duties are levied on imported goods from 5% and vary depending on the type of product and its classification under the customs tariff.

– Social Protection Fund (SPF) (Ex PASI): Employers are required to contribute to the Social Protection Fund (SPF), earlier known as the Public Authority for Social Insurance (PASI), for their Omani and expatriate employees. The contributions are based on employees’ salaries and are calculated as a percentage of the total payroll. The current baseline is 20.5%, which includes employee contributions. They are always subject to change.

– Value Added Tax (VAT): As of 2021, Oman introduced VAT at a standard rate of 5%. VAT is applicable to most goods and services supplied in Oman, although certain exemptions and zero-rated supplies may apply.

Obtaining a municipality (trade) license involves registering your business with the Ministry of Commerce and Industry, securing a physical office space, and submitting a lease agreement. The type of office and location may vary based on your business activities. Bondoni can assist in ensuring all steps are completed smoothly.

Omanisation is a government policy aimed at increasing the employment of Omani nationals in the private sector. Depending on your industry, you may need to meet specific Omanisation targets. Bondoni provides advisory services to help businesses comply with these regulations.

The initial capital required for setting up a company in Oman can vary depending on the business structure. Although there is no minimum capital requirement to set up a business entity, the authorized minimum capital required for each business structure differs. Bondoni can provide specific guidance based on your chosen business structure.

Oman currently has several strategically located free zones designed to encourage investment across various sectors. The primary free zones in Oman include:

– Sohar Freezone
– Salalah Freezone
– Al Mazunah Freezone
– Duqm Special Economic Zone

These free zones offer unique advantages, such as tax incentives, customs exemptions, and full foreign ownership. Bondoni can assist you in selecting the most suitable free zone based on your business requirements.

Setting up a business in an Omani free zone offers several advantages, including 100% foreign ownership, tax exemptions, and duty-free import and export. Bondoni can help you navigate the free zone regulations and set up your business for success.

Yes, foreigners can establish online businesses in Oman under various structures, with the most common being the Limited Liability Company (LLC).

The key requirements for foreigners setting up a business in Oman include:
– Business Structure: A sole proprietorship, LLC, or branch of a foreign company.
– Shareholders: LLCs must have at least two shareholders.
– Capital Investment: The minimum capital for foreign-owned companies varies depending on many factors, such as the type of business entity, sector, ownership structure, and location.
– Office Space: It is a must for business operations.
– Local Partner: Depending on the business type, a local partner or sponsor may be necessary.

Registering a company in Oman requires following the below steps:
1. Choose Corporate Structure
2. Register the new Company
3. Obtain Tenancy Agreement
4. Activate Trade Licenses
5. Register with Ministry and Government Authorities
6. Incorporate the new company
7. Bank opening for the new company
8. Other Back office (Corporate PRO Services) services and compliance

Bondoni is truly ‘Uniquely Oman,’ with an unmatched network and in-depth local knowledge.

Choosing Bondoni ensures a smooth and hassle-free business setup process in Oman. With our extensive experience and expertise in local regulations and procedures, we provide tailored solutions to meet your specific business needs. Our dedicated team will guide you through every step of the process, from initial consultation to post-incorporation support, ensuring compliance and peace of mind.

At Bondoni, we specialise in company formation and offer a comprehensive range of business support services in Oman. Our services include company registration, legal and administrative assistance, all the back-office services (locally known as PRO services), visa processing, Omanisation & HR strategy, tax advisory, document renewals, and much more to help businesses establish and grow in Oman.

Yes, Bondoni offers comprehensive PRO (Public Relations Officer) services, including government representation, bank opening, tax & VAT registration, visa management, custom clearance, Omanisation & HR strategy, legal services, and annual document renewals.

Our team ensures that all administrative procedures are handled efficiently, saving you time and effort.

Without the help of experts, setting up a business in Oman can take up to two months.

However, working with specialists like Bondoni, the time required depends on the teamwork with our clients.

After the client has returned all the correctly completed (and attested) documents, the registration averages between 1-3 days. After obtaining the tenancy agreement, the incorporation can take between 5-10 days depending on the trade licenses and the parent company’s origin. At Bondoni, we prioritise efficiency and transparency, providing realistic timelines and regular updates throughout the process.

Getting started with Bondoni is simple! You can contact us through our website or directly reach out to our team via email at enquiries@bondoni-me.com or call us at (+968) 24213946.

Our experienced consultants will assess your requirements, provide personalised recommendations, and guide you through the process from start to finish. Let Bondoni be your trusted partner for company formation and business support services in Oman.

Yes—Bondoni can provide local sponsorship services in Oman. Many corporates still choose to have a local partner, giving them certain benefits, including:

– In-Country Value (ICV) qualifications
– Priorities for certain tenders

Bondoni is a fully qualified local corporate partner, as we are a 100% Omani-owned limited liability registered company.

The shareholder allocation is flexible. We are committed to mutually agreed commercial terms, outlined in an international standard Shareholders Agreement (SHA), which will fully protect your interests and grant you complete management and financial control of the business.

As our partner, you will also benefit from all our business support services.

Our commitment to client satisfaction extends beyond company formation. Bondoni provides ongoing outsourced business support services to help your company ramp up in the early years and thrive in Oman’s competitive market. From visa renewals, customs clearances, annual document renewals, and legal compliance to accounting and tax advisory, we ensure that your business operations run smoothly, allowing you to focus on growth and success.

Yes, Bondoni can assist with opening a corporate bank account in Oman. We guide you through the required documentation and processes, ensuring compliance with local banking regulations as part of our Company Formation and Business Support Services. We do not solely provide bank account opening as a service.

Bondoni offers ongoing support to ensure your business remains compliant with Omani laws and regulations. We assist with document renewals, tax filings, and other legal requirements, helping you avoid potential penalties and legal issues.

Yes, Bondoni provides companies in Oman with end-to-end support for obtaining employee visas and work permits. We handle the entire process, from initial application to renewals, ensuring compliance with Omani immigration laws.