How to Incorporate a Holding Company In Oman

The holding company can be formed as a limited liability company, or a joint stock company under a “CCL” (Commercial Companies Law Of Oman). A holding company must need a minimum capital of RO 2,000,000. This type of capital can be paid in full upon the holding company’s incorporation or upto 50% if it’s a joint stock company. When the issued share capital is partially paid, then the balance amount must be paid within three years from the holding companies’ incorporation date.

Objectives Of Holding Company

• To manage the subsidiary company or participate in managing other companies where holding company can own shares
• The investment of funds in bonds, shares, and securities
• Guarantees, granting loans, and finance to subsidiaries
• Acquisition of trade marks, patent rights, concessions, intangible rights of exploitation by the company or lease their subsidiaries to other companies.

The holding company may not own interests in limited partnership or in general, as it can be prohibited to own shares in some other holding company.

Minimum Capital

The holding company has the minimum capital requirement of RO 2,000,000. The issued share capital of 50% can be paid at the incorporation time in the holding company with a balance amount to be paid within three years from the holding companies’ incorporation date.

Time Duration To Set Up The Holding Company

If it’s a limited liability company, the holding company can be registered in just 15 days from the date of commencement. But if it’s a joint stock company, it takes at least 45 days. Similarly, ensure that RO 2,000,000 of entire capital should be paid on the time of incorporation.

Count Of Directors

In joint stock companies, there can be a maximum of 12 directors, and a minimum of 3 directors. The limited liability companies don’t have the board of directors.

CCL Of Article 128

The holding companies’ board of directors can call the chairman of the board of directors from the subsidiary company to attend the board of directors meeting held by their company, while considering the matters of their affiliate company. Hence they can give remarks, express their opinions, offer statements needed by the board on issues. He can participate in discussions but doesn’t have the right to vote.

Expatriate Director

No restrictions on the count of expatriate directors for the board of holding companies.