Skip to content
Oman

Steps to Set Up a Company:

Oman

Choose a Business Structure

  1. Sole Proprietorship (Establishment): Single owner, full liability.
  2. General Partnership: Two or more partners, shared liability.
  3. Limited Partnership: General and limited partners.
  4. Limited Liability Company (LLC): Separate legal entity, limited liability.
  5. Joint-Stock Company (SAOG/SAOC): Separate legal entity, limited liability, can be public (SAOG) or private (SAOC).
  6. Branch: A branch of a foreign company operating in Oman.
  7. Representative Office: Limited to marketing and promotional activities, cannot conduct business transactions.

Register Your Company

  1. Choose a Company Name: Ensure it is unique and follows naming regulations.
  2. Prepare the Articles of Association: Outlining the company’s structure and rules.
  3. Open a Bank Account: Deposit the initial capital required for the company type.
  4. Register with the MOCIIP: Submit the incorporation documents and pay the registration fee.
  5. Obtain a Tax Identification Number (TIN) from the Tax Authority: For tax purposes.
  6. Register for Value Added Tax (VAT) with the Tax Authority: If applicable.

Open an Omani Bank Account

  1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

  1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.

Comply with Omani Employment Laws

  1. Employment Contracts: Draft contracts that comply with Omani labor laws.
  2. Register with the Public Authority for Social Insurance (PASI): For social security purposes.
  3. Health and Safety Regulations: Follow guidelines from the Ministry of Manpower.

Accounting and Reporting

  1. Set Up an Accounting System: Maintain accurate financial records.
  2. Annual Financial Statements: Prepare and file annual financial statements.
  3. File Annual Tax Returns: Submit annual tax returns to the Tax Authority.

Laws and Regulations to Consider

Corporate Law

  1. Commercial Companies Law (Royal Decree No. 18/2019): Governs the formation and operation of companies.
  2. Civil Transactions Law (Royal Decree No. 29/2013): Governs contracts and obligations.

Tax Law

  1. Income Tax Law (Royal Decree No. 28/2009): Governs income tax for individuals and companies.
  2. Value Added Tax (VAT) Law (Royal Decree No. 121/2020): Governs VAT regulations.

Employment Law

  1. Labor Law (Royal Decree No. 35/2003): Governs the terms and conditions of employment contracts.
  2. Social Insurance Law (Royal Decree No. 72/1991): Governs social security contributions.
  3. Occupational Safety and Health Regulations (Ministerial Decision No. 286/2008): Sets health and safety standards for workplaces.

Data Protection Law

  1. Electronic Transactions Law (Royal Decree No. 69/2008): Governs data protection and electronic transactions.

Environmental Law

  1. Environmental Protection and Pollution Control Law (Royal Decree No. 114/2001): Governs environmental protection and sustainability practices.

Intellectual Property Law

  1. Industrial Property Law (Royal Decree No. 67/2008): Governs the protection of trademarks, patents, and industrial designs.
  2. Copyright Law (Royal Decree No. 65/2008): Governs the protection of copyrights.

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Oman. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.

When to Consider Setting Up a Company in Oman:

  1. Strategic Geographic Location: Oman’s location provides access to markets in the Middle East, Africa, and South Asia.
  2. Stable Economic Environment: Oman offers a stable macroeconomic environment with opportunities for growth.
  3. Natural Resources: Rich in natural resources, providing opportunities for businesses in oil, gas, and mining sectors.
  4. Favorable Investment Climate: Oman offers various incentives for foreign investment and a supportive regulatory environment.
  5. Skilled Workforce: Access to a skilled labor pool, particularly in engineering, technology, and services.
  6. Developed Infrastructure: Oman has a well-developed infrastructure, including transportation, telecommunications, and energy.
  7. Innovation and Technology: Oman is focusing on innovation and technology, with government support for tech initiatives.
  8. Quality of Life: Oman offers a high standard of living, excellent healthcare, and a favorable work-life balance, making it attractive for expatriates and international employees.

By considering these factors and aligning them with your business goals, you can determine if setting up a company in Oman is the right move for your organization.

DALL·E 2024-07-08 12.02.10 - An illustration promoting Grant and Grahams global support for setting up companies. The image features a globe with various business icons around it
How to Set Up a Company

Step-by-Step Guide: How to set up a Company

Setting up a company involves a series of crucial steps that require careful planning and execution. From choosing the right business structure to understanding legal and tax obligations, each stage is vital to the successful launch and operation of your business. This step-by-step guide provides a comprehensive overview of the key processes involved in establishing a company, ensuring you have the knowledge and tools needed to navigate the complexities of business formation.