How to Set Up a Foreign Owned Company in Oman?

Oman Ministry of Commerce And Industry brought in a new Foreign Capital Investment Law effective from 2nd January 2020. It aims to make Oman an attractive investment environment. This law ensures the stability of foreign investment in the country. New Law has many incentives and benefits to foreign investments that provide stability and business flow in the Sultanate which has an impact on economic development.

Requirements For A Complete Foreign Ownership In Oman

Since January 2020, foreign companies, investors and citizens in Oman are able to hold 100% of their businesses in several industries in the mainland of Oman. A few activities of the mainland are reserved for Omanis, other activities need a local Omani partner who has a minority shareholding.

There are several Oman Free zone areas. Refer our pages on Oman Free zones for more details.

A list of 40 activities are reserved for the Omanis in different sectors like translation services, manpower recruitment and tailoring. These lists are amended by the executive regulations by 30 July 2020.

Consultancy Activities In Oman

All kinds of consultancy activities need a Local Omani shareholder and their requirements remain the same. An investor or foreign company can set up a consultancy office in partnership with an individual or Omani company.

The Omani partner must hold 35% of shares in the new company. OMR 150,000 must be available as the proof of funds.

Documents Needed For Individual Shareholders

• Passport copy of the individual.

For Corporate Shareholders:

• Trade license
• Certificate of Incorporation
• Memorandum of Association
• Board Resolution and Power of attorney
• Certificate of equivalent or Incumbency

These documents must be legalized, attested and notarized from the country of origin. Then it is sent to PPG in Oman to get legal translation & stamping in the Country.

Business Plan – required by MOCI, the business plan has 3 sections.

• Investment costs
• Project description
• Date to start project

CR application form- It needs the following requirements:

• Shareholding structure along with nationality and holdings for corporate or individual shareholders.
• Proposed Company Name.
• The proposed Company grade ( 4 to 1), and has an excellent grade above 1.
• OMR of 20,000 for Grade 4 and OMR of 150,000 for Grade 1, and for excellent grade OMR of 250,000.
• Share capital need not be deposited before the company’s opening.
• The Grade of the company affects the Omanisation requirements and the activities that the company obtains.
• Confirmation of the Company’s Financial Year.
• Proposed activities of company.
• Authorised signs & the manager of the company, who has the level of control in business (from admin to manager).
• Form is authorised and shared by the shareholders.

Steps To Set Up An Oman’s Complete Foreign Owned LLC Company

• Document preparation
• Initial approval and trade name (Commercial Registration with MOCI), CR application form and business plan.
• Chamber of Commerce Registration.
• Warehouse or Office Lease Arrangement.
• Need of Completed CR and Lease Agreement- Municipality License Application. In this stage, the company is fully registered.
• Ministry of Finance Registration (register with MOF for annual audit and tax department).
• Ministry of Manpower (apply for labour quota and get staff visas).
• PRO registration in CR to apply for visas with the Royal Oman Police. It is individually named Omani PRO.
• Extra external approval based on the company’s activities. (Oman’s Customs registration to trade and import goods).

Fees To Set Up An Oman’s Complete Foreign Owned Company

• Government registration fee – OMR 3500.
• Cost of the Municipality License depends on the lease values and company’s activities.
• OR 20 for the registration fee of Omani Customs Government.

How Can Black Swan help?

Get in touch with us to set up a 100% foreign owned company in Oman or for share transfers for restructuring existing companies.

Originally posted 2022-05-17 04:59:47.