Company formation in Oman

At a glance

Entity

Limited liability company (LLC / sharikat mahdudat al-mas'uliyah); single-owner LLCs (SPC) are also allowed. Governed by the Commercial Companies Law (RD 18/2019).

Corporate tax

15% standard corporate income tax. A reduced 3% rate applies to qualifying small companies (registered capital <= OMR 60,000, gross income < OMR 150,000, <= 25 staff, excluding petroleum/banking/insurance/utilities). Petroleum firms taxed at 55%; a Pillar Two top-up tax (RD 70/2024) applies to large multinationals from 2025. No VAT-free status - 5% VAT applies separately. (As of 2026.)

Incorporation time

~3-7 business days for the Commercial Registration (CR) once name and documents are in order; full end-to-end setup incl. bank account and approvals typically 4-6 weeks.

Minimum capital

No fixed statutory minimum for most activities following MOCIIP reforms; capital is declared by activity. Historically OMR 20,000 for foreign-owned LLCs, and banks/regulated sectors still expect meaningful working capital. Note that capital thresholds trigger audit obligations (see audit).

Resident director

No statutory requirement for a resident (Omani) director or shareholder for most activities - 100% foreign ownership is permitted under the Foreign Capital Investment Law (RD 50/2019). At least one manager must be appointed, and a registered office address in Oman is required. A local agent/partner is still required for a residual list of reserved activities.

Audit

Statutory audit is mandatory where shareholders exceed 7 or share capital exceeds OMR 50,000. Additionally, audited financial statements must accompany the corporate tax return where capital exceeds OMR 20,000. Accounts follow IFRS; auditor must be locally licensed.

Remote set-up

Largely doable remotely via the MOCIIP 'Invest Easy' portal, but a physical registered address is required and non-resident founders normally act through a notarised/legalised power of attorney. Oman is NOT party to the Hague Apostille Convention, so foreign corporate/personal documents must be attested and consular-legalised (not apostilled). KYC and, in some cases, in-person bank onboarding apply.

Government fee

CR registration fee is tiered by declared capital, roughly OMR 150-500, plus name reservation ~OMR 10-20 and mandatory Oman Chamber of Commerce (OCCI) membership ~OMR 150-300 by grade; municipality fees add ~OMR 100-500. Realistic government-only outlay ~OMR 500 (~USD 1,300). (As of 2026.)

Best for

Best for foreign founders who want a 100%-owned GCC base with a modest headline tax rate and access to Gulf and Indian Ocean trade. Expect slower banking and some friction around document legalisation.

The process

1. Reserve a trade name and select business activities (ISIC codes) on the MOCIIP Invest Easy portal.
2. Draft and notarise the constitutive contract/articles; legalise foreign shareholder documents via consular attestation and appoint a manager plus registered office.
3. Submit the application, pay CR and OCCI/municipality fees, and obtain the Commercial Registration Certificate and Chamber of Commerce membership.
4. Register for tax, obtain municipal/activity licences, open a corporate bank account, and enrol for any labour/immigration clearances needed for staff.