How to Setup Business in Oman with a local entity

Oman is a member of the Gulf Cooperation Council and the Arab League (GCC). The Sultanate of Oman has commercial laws that govern businesses. These laws are similar to those in other Middle Eastern countries. In the last few decades, the country has used good economic policies to bring in foreign investments in a wide range of industries.

Even though it might be appealing for foreign companies to invest in Oman in some areas, it is hard for foreign workers to get visas and work permits, and the government and private sector are not always on the same page. In particular, many international companies have to deal with Oman’s policy of “Omanization,” which involves setting quotas for Omani nationals that must be filled in most industries. In the below article, you will read about how to setup business in Oman with a local entity.

One-Person Company (OPC) in Oman

A limited liability company can be set up with just one shareholder (a person or a company), one director, and no minimum amount of paid-up share capital. Best uses: It is likely that an OPC will become the most common way for foreigners to do business in Oman through a simple corporate structure.

Oman limited liability company (LLC) registration

The new foreign investment law got rid of the following requirements: (i) the mandatory minimum share capital requirement and (ii) the requirement for an Omani, GCC, or USA shareholder. However, because there isn’t a clear regulatory framework, it’s best to check with MOCI on a case-by-case basis.

Most foreigners who want to do business in Oman set up an Omani Limited Liability Company (LLC).

You will be Interested on : Process of Setting up of LLC Company in Oman

Oman Free Zone Company Setup

Businesses that are based in Oman Free Zones can: (i) be completely owned by foreigners; and (ii) do business with people in their own country. Free zone companies usually need at least two shareholders and are exempt from corporate income tax, II custom duties, and III only 10% of their employees need to be Omani.

Free zones are a good idea for manufacturing or trading companies that want to use Oman as a base to grow in the Middle East.

Keep reading : Oman Free Zone Company Formation

Joint Stock Company (SAO) in Oman

A joint-stock company is made up of at least three shareholders. Companies that trade their shares publicly are called public joint stock companies (SAOG), and they need I a minimum share capital of OMR2 million (about US$5.2 million), II an Omani shareholder with 30% of the shares, and III at least 40% of the shares to be offered for public subscription.

Uses that work best: We recommend registering a joint stock company for projects that require a lot of money or need to raise money.

You will be Interested on : Oman Joint Stock Company Formation

Holding Company Formation in Oman

A holding company is an entity that owns at least 51 percent of the shares of one or more joint-stock or limited liability companies. This type of entity needs three shareholders and a minimum share capital of OMR2 million (about US$5.2 million). For the reasons listed above, holding companies are not often used by foreign investors.

We suggest setting up a joint stock company for projects that need to invest or raise a lot of money.

Keep reading : How to Incorporate a Holding Company In Oman

Limited Partnership (LP) Company Registration in Oman

For a limited partnership to be registered, there must be at least one general partner and one limited partner. The general partner is responsible for the partnership’s debts up to the full amount of the partnership’s investment, while the limited partner is only responsible for the partnership’s debt up to the amount of capital they contributed.

Only the general partner(s) can take part in running the business, and they must be from Oman or the GCC.

We recommend LPs to clients who want to start a business in Oman to offer professional services like accounting, auditing, or fiduciary services.

General Partnership (GP) Joint Venture

A general partnership (GP) is made up of at least two people who are citizens of Oman or a GCC country. The partners of a GP are fully responsible for the debts of the company. A GP does not have minimum capital requirements;

We suggest that GCC nationals who want to offer professional services like accounting, auditing, or fiduciary services work with a GP.

Joint Venture (JV)

A joint venture is an agreement between two or more parties (an individual or a company, a citizen or a foreigner) in which one party does business in his or her own name and the profits and losses are split.

A joint venture is not a legal entity, so it does not need to be registered with the local authorities, and they cannot protect it.

A joint venture agreement can’t be told to other people, or it will be treated as a general partnership.

It is best for a foreign company that is working in Oman on a short-term project. Blackswan BSS will help in Business Setup in Oman.

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