Accountants and company formation in Oman

Setting up a company in Oman

To set up a company in Oman as a foreigner, you register it on the Oman Business Platform run by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), and you obtain an investment licence under the Foreign Capital Investment Law before the project starts. In any activity open to foreign investment, the company can be fully foreign-owned. A company aimed at export markets can register in a special economic zone or free zone instead, under the Public Authority for Special Economic Zones and Free Zones (OPAZ).

The mainland route, in short:

1. Confirm the activity is open to foreign investment and find its code in the platform’s ISIC list.
2. Pick the legal form, usually a limited liability company (LLC), a branch or a representative office.
3. Prepare the documents, including passports, any corporate papers from abroad and a feasibility study.
4. Register online through the New Commercial Registration service, which includes the trade name.
5. Join the Chamber of Commerce and apply for any activity licences and premises approvals.
6. Register for tax within 60 days, open the bank account and arrange work permits.

Who can set up a company in Oman: the foreign ownership rules

The legal basis is the Foreign Capital Investment Law, issued by Royal Decree 50/2019 on 1 July 2019 and in force since 1 January 2020. It replaced the 1994 investment law. In the English translation by the Ministry of Legal Affairs, Article 6 says foreign investment is carried out by an establishment or company in a permitted activity, owning the invested foreign capital in whole or by contributing to it, with a licence issued by the ministry’s Investment Services Centre.

Two points follow from the law:

• Full ownership is the rule for permitted activities. A foreign investor can own the whole company, or share it with Omani or other foreign partners. Invest Oman lists 100% foreign ownership among the country’s incentives.
• Some activities are closed to foreign capital. Article 14 says the list of activities prohibited to foreign investment is issued by a decision of the minister. Check your activity against that list before you pay for documents or premises.

The law also gives a foreign-owned project the same benefits and guarantees as a national project, and the freedom to transfer profits, sale proceeds and loan repayments in and out of Oman at any time. Disputes go to the Omani courts, and arbitration is allowed.

Mainland, free zone or special economic zone

Oman has two broad places to register a company, and the choice decides who licenses you.

Mainland. MoCIIP registers the company and the Investment Services Centre issues the investment licence. This is the usual route for a company that will sell to customers and businesses in Oman.

Zones. OPAZ was set up in August 2020 by Royal Decree 105/2020 to oversee the Special Economic Zone at Duqm and the Al Mazunah, Salalah and Sohar free zones, according to its page about the authority. Its FAQ describes free zones as places for businesses focused on foreign markets, and industrial cities as aimed at local and GCC markets. Since 2025 the zones run under their own Special Economic Zones and Free Zones Law, Royal Decree 38/2025, with executive regulations issued in 2026 that route applications through a one-stop shop.

The foreign investment law states that it does not prejudice the decrees on the Duqm zone, the industrial estates and the free zones, so a zone company follows its zone’s rules first. If most of your customers are in Oman, start with the mainland. If you import, process and re-export, compare the zones.

Step 1: Check the activity and the licence route

Everything depends on the activity. It decides whether foreign ownership is permitted, whether a ministry or regulator must approve you, and which licences sit on top of the commercial registration.

Look up the activity in the Business Activities List (ISIC) on the Oman Business Platform. The platform’s FAQ explains that some activities can start on registration alone, while an activity that needs a licence is marked “License Pending” on the commercial registration until the competent body approves it. Regulated sectors need their regulator’s approval before the company can trade, so find out early which body that is for your activity.

Step 2: Choose the legal form

The Commercial Companies Law, Royal Decree 18/2019, sets out the company forms. The Commercial Registry FAQ lists what can be registered:

• Limited Liability Company (LLC): the usual choice for a trading or service business with one or more owners. OPAZ also lists a one-person company among the forms available in the zones.
• Foreign Company Branch: registered as a branch of your foreign company rather than as a new Omani company, so the parent stays behind every contract.
• Commercial Representative Office: generally used for promotion and liaison work on behalf of a foreign company, not for trading in its own name.
• Joint stock company: closed or public, for larger projects and listed businesses.
• Partnerships: joint and limited partnerships.

One form is not available to you: the platform states that a House Trade Business is intended for Omani individuals only, and no foreigner can establish one.

Minimum capital depends on the form and the activity, and is declared in the commercial registration. The platform has a service to submit proof that the capital has been paid, so plan the funding before you register.

Step 3: Prepare the documents and the investment licence file

The Executive Regulations of the Foreign Capital Investment Law, Ministerial Decision 72/2020, state that a foreign investor may not establish a project before obtaining an investment licence. The regulations list what the licence application contains:

• the investor’s name, nationality, place of residence and bank details, and the activity
• any previous experience in the field
• the number of workers the project expects to employ
• the implementation timeline and the start date
• a feasibility study for the project

For a company owned by a foreign parent, expect to supply the parent’s commercial registration, a board resolution approving the investment and its articles of association. OPAZ asks zone applicants to have these papers approved by the Omani embassy and the Ministry of Foreign Affairs in the country of origin. For a mainland company, ask your adviser which stamps your country’s documents need before you send them.

Step 4: Register on the Oman Business Platform

Registration runs through the platform’s New Commercial Registration service, and MoCIIP’s own invest page sums up the sequence: access the platform, select the legal form, fill in the commercial register data and obtain the Chamber of Commerce membership certificate.

A few practical rules from the platform’s FAQ:

• Digital identity: to register online, every investor needs a PKI-enabled eID card or a mobile ID. Founders without one register through the ministry’s front office or a Sanad service centre, or through an authorised representative.
• Number of investors: the online service accepts a company with up to five investors.
• Trade name: name selection is now part of the registration application, not a separate reservation. Names should be in Arabic or translated into Arabic, according to OPAZ’s naming guidance.
• Certificate: the commercial registration certificate printed from the PDF is as valid as the counter copy, and banks accept it.

The Executive Regulations also set decision times. The bodies that issue approvals, permits or licences must decide within 14 working days of receiving a complete file, and silence counts as acceptance. Once every approval is in, the investment licence is issued within three days.

Step 5: Chamber membership, activity licences and premises

After registration, the company joins the Oman Chamber of Commerce and Industry. OPAZ notes that the Chamber membership can be taken for one or two years, while the commercial registration certificate is valid for five years.

Licensed activities then need the approval of their competent body, and most businesses need a registered place of activity with a lease. The platform lets you manage places of activity and lease contracts online. Do not sign a long lease until the activity and its licence route are clear.

Step 6: Tax registration, bank account and staff

Tax. The Tax Authority requires every establishment carrying on economic activity in Oman to register for income tax within 60 days of starting the activity or of registering with MoCIIP. Registration gives the company a tax file number. The Tax Authority also issues a tax card, which banks and the Ministry of Labour ask for; it costs 10 riyals and is valid for two years.

Bank account. Open the company account once the commercial registration, Chamber certificate and tax card are in hand. Each bank sets its own checks on owners, managers and the source of funds, so allow time for its review.

Staff and residence. MoCIIP’s business guide notes that employers apply for work permits online and that residence visas are issued through the Royal Oman Police. Invest Oman notes that Omanisation quotas apply by sector. Owners who invest can also look at the investor residence programme, which offers renewable permits of five or ten years.

How a foreign-owned company in Oman is taxed

The Tax Authority’s page on tax rates sets out the main rules:

• Corporate income tax: 15% of net taxable income for institutions and commercial companies. Oil and gas exploration companies pay 55% under their concession contracts.
• Small establishments: 3% for those that meet all of the conditions in the Tax Authority’s income tax FAQs: registered capital and gross income below set limits, no more than 25 workers, and an activity that is not an occupational one. Confirm with an adviser whether your company qualifies.
• Withholding tax: 10% on payments to foreign persons without a permanent establishment in Oman for services, interest or royalties, paid to the Tax Authority by the fourteenth day after the end of the month of payment.
• VAT: 5% on most goods and services under the VAT Law, Royal Decree 121/2020. Registration is mandatory once taxable supplies reach or are expected to reach 38,500 OMR a year, and voluntary from 19,250 OMR. Exports and international transport are zero-rated; financial services and residential rents are exempt.
• Large groups: Royal Decree 70/2024 introduced a top-up tax law for entities of multinational groups.

Incentives exist, but they come with conditions. The Executive Regulations allow exemptions for projects such as integrated tourism, ICT, logistics and large industrial projects, and OPAZ advertises exemptions of up to 30 years for qualifying zone companies. Even an exempt company must still file its returns.

Keep the company in good standing

Incorporation starts a yearly cycle of filings:

• Income tax return: due within four months of the year end for companies taxed at 15%, with audited accounts attached, and within three months for those taxed at 3%. Late payment adds 1% a month, and a missed return can cost between 100 and 2,000 RO.
• VAT returns: quarterly, filed within 30 days after the end of each tax period, according to Article 72 of the VAT Law.
• Investor’s annual report: within 60 days of the year end, the foreign investor sends the authority the audited financial statements, the auditor’s report and a statement of staff numbers and nationalities.
• Renewals: the commercial registration, Chamber membership, licences and the tax card each have their own renewal date.
• E-invoicing: the Tax Authority is introducing e-invoicing in phases, starting with selected large taxpayers and ending with all VAT-registered businesses.

The first accounting period can run for up to 18 months, which helps when the company starts mid-year.

Common mistakes foreign founders make

• Choosing the form before checking the activity. A prohibited or licensed activity changes the whole plan.
• Counting on online registration without a digital ID. Without a PKI-enabled ID, plan for an office visit or a representative.
• Leaving the tax registration late. The 60-day window starts at registration with MoCIIP, not at the first invoice.
• Letting the licence lapse through inactivity. Under the Executive Regulations, the investment licence is cancelled if the investor does not start the activity within two years of forming the company.
• Assuming a zone and a mainland company work the same way. Zones have their own operators, licences and Omanisation rates, which OPAZ puts at 10% to 35% depending on the zone.

Finding an adviser in Oman

Accountanty lists 30 firms in Oman, all based in Muscat: 27 accounting firms and 3 corporate service providers. Every one of them offers company formation, and all 30 also offer tax compliance and audit. Our company formation page explains how to compare providers and quotes, and the page on accountants for foreign clients lists the 13 firms that focus on clients from abroad.

The Executive Regulations let a licensed consultancy office or bank check your investment licence application, certify it and file it on your behalf, so a good adviser can carry most of the process for you. Once your activity is confirmed and your documents are ready, you can set up a company in Oman with a clear plan. Send one free quote request describing your project, and Accountanty passes it to firms that fit.