Legal framework
Under the Foreign Capital Investment Law, foreign investors are permitted to have 100% foreign ownership in many business activities in Oman. With some business activities, foreign companies or individuals – other than investors from the GCC or the United States – must have an Omani partner holding at least 30% of the shares in a limited liability company (LLC). The previous requirement for a minimum paid-up capital of OMR 150,000 has been removed. However, investors are still expected to show evidence of equivalent funds when registering the company.
Types of sponsorship
A business can meet the local participation requirement in one of two ways: by partnering with an individual Omani national or with a 100% Omani-owned company.
An individual sponsor must be an Omani citizen aged 21 or above. Depending on the activity, this person may also need to hold certain qualifications or experience relevant to the new company’s operations. In most cases, the sponsor’s shareholding does not correspond to a share of profit. The foreign investor pays a fixed annual fee, and the day-to-day management of the company remains fully under their control.
A corporate sponsor offers a more secure and transparent arrangement. The Omani corporate entity fulfils the statutory ownership requirement but does not participate in management or financial decisions. This structure removes the risks that can arise if an individual sponsor retires or passes away and gives the foreign shareholder continuity and reassurance from the outset.
Partnering with Sovereign
Sovereign provides a professional corporate sponsorship structure that meets all local requirements and protects the interests of the foreign investor. Our role as the Omani partner is limited to fulfilling the statutory 30% shareholding, and it is carried out through a clearly documented nominee arrangement. Control of the business, its operations and its profits remains entirely with the foreign shareholders.
We take care of the practical steps that come with setting up a business in Oman. This includes preparing incorporation papers, applying for licences, arranging visas and labour quotas, and assisting with translation and banking formalities. The process is handled by our in-house team, which maintains regular contact with the relevant ministries and authorities.
The General Manager appointed by the client continues to manage the company’s day-to-day activities without interference. All our fees are agreed at the outset and remain fixed, which helps clients plan with confidence and avoid unexpected costs.
Our office in Oman offers continuing administrative and corporate support. We help clients navigate local regulations, maintain compliance, and build useful connections within the
business community. Should there ever be a need to transfer shares or end the sponsorship, Sovereign will oversee the process smoothly and in line with Omani law.
By combining local presence with international experience, Sovereign provides a stable platform for investors who want to operate in Oman securely and with full peace of mind.
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
