Why choose an LLC in Oman?
Oman has made it easier in recent years for foreign investors to enter the market. Fewer ownership restrictions and a clearer approval process have opened new opportunities across most sectors. For many, the Oman Limited Liability Company (LLC), remains the most practical and trusted corporate entity, providing flexibility, limited liability and a simple route to establish a recognised legal presence.
An LLC can have from two up to 50 shareholders and, in most industries, foreign investors can now hold 100% ownership without the need for a local partner. An LLC that has only one shareholder is termed as a sole proprietor company (SPC). There are some regulated activities that still require an Omani shareholder or separate government approval, so it is worth confirming these requirements early.
For investors looking to build a lasting base in Oman, the LLC offers a stable, recognisable framework that is easy to manage once established and suits a wide range of commercial and professional services.
Benefits of an LLC in Oman
Company Formation Process
The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) oversees the registration of all companies in Oman. The process follows a defined sequence that starts with reserving a trade name and ends with the issue of a Commercial Registration Certificate.
Trade name reservation
The first step is to secure approval for the proposed company name through the MoCIIP system. The name must be distinctive and relevant to the business activity. Approval is generally issued provided the name complies with national naming rules.
Registration documents
After name approval is obtained, the Memorandum and Articles of Association are drafted to outline the company’s ownership, management structure and purpose. These are signed before a notary and lodged with the incorporation application.
Supporting Documentation
Typically, the following documentation will be required to incorporate an LLC company in Oman:
- Passport copies for shareholders and authorised signatories.
- Signature specimens for company representatives.
- Completed registration forms.
- Proof of capital deposit, if requested by the bank.
Commercial registration
When all documents are approved, the company is entered in the Commercial Register and issued a Commercial Registration Certificate. It must then register with the Oman Chamber of Commerce and Industry (OCCI).
Licences and Corporate Tax registration
Depending on the activity, additional licences or sector approvals may be needed. The company must also register with the Oman Tax Authority. The corporate tax rate is 15%, while VAT applies on goods and services at 5%.
Office and banking
Every LLC is required to maintain a minimum presence – a registered office address in Oman and a resident company secretary and/or a resident agent. Sovereign will generally provide these services for all our clients. We describe them as ‘domiciliary services’.
A business bank account is also required, and some banks may ask for confirmation that the company’s capital has been deposited.
Depending on the business activity, companies may require further clearances from the Ministry of Labour, municipal authorities or the Royal Oman Police before operations can be commenced.
Capital, Ownership and Compliance
There is no minimum capital requirement for LLCs in Oman but the MOCIIP applies a test that the initial share capital should be sufficient for the new company’s initial business activities. In practice this means that a new LLC should have enough working capital to fund its initial start-up costs and ongoing business for at least 12 months. Shareholders are liable only up to the amount of their capital contribution.
It is worth noting that some regulated sectors impose their own capital requirements, typically starting around OMR150,000 (c. USD390,000).
Companies in Oman are required to maintain proper financial records in line with International Financial Reporting Standards (IFRS) and submit annual audited financial statements. Standard obligations include renewing the Commercial Licence, filing annual tax returns and meeting Omanisation targets that govern local employment ratios.
Costs and Timelines
The costs involved in establishing an LLC will depend on the business activity and company classification. Government registration fees generally range from OMR150 to OMR500, while licence fees vary from OMR250 to OMR3,000. Legalisation, notarial and translation charges are additional, as are office space rental costs.
When documents are in order, company registration can often be completed within 10 working days. Activities requiring extra approvals may take longer, but most incorporations are finalised within two to three weeks.
How Sovereign can assist
Sovereign provides a full suite of services for establishing and maintaining LLCs in Oman. Our team assists with end-to-end company set-up support, including legal structuring advice for foreign investors, incorporation, government coordination, tax registration, office services and ongoing administrative and accounting assistance.
Our Muscat team works directly with MOCIIP and the relevant ministries to ensure documentation, licensing and approvals are managed efficiently. Each project is handled by a dedicated consultant who ensures the process runs smoothly and in full compliance with Omani regulations.
The goal is to create a secure, compliant base for business operations in Oman and provide the ongoing administrative support that is required for long-term growth.
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Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
