Company formation in Oman - What services are provided?

In Oman, there are various company forms that entrepreneurs can choose from when setting up their business. The two most common company forms are:

1. Limited Liability Company (LLC):
The LLC is one of the most popular forms of company in Oman. It requires at least two founders, but can have up to 40 shareholders. The liability of the shareholders is limited to their respective capital contributions. As a rule, an Omani citizen or an Omani company must hold at least 30 % of the share capital.

2. Public limited company (SAOC – Joint Stock Company)
A SAOC is a company whose capital is divided into shares. It requires at least five shareholders and a minimum amount of capital depending on the type of business. The liability of the shareholders is limited to their respective shares in the share capital. It is possible for foreign investors to establish a SAOC, subject to certain restrictions and authorisations.

There are also specialised company forms that are suitable for certain sectors or purposes:

3. Sole proprietorship:
A sole proprietorship allows one person to run a business without a partner. Liability is personal and unlimited.

4. Branch of a foreign company:
Foreign companies can establish a branch in Oman to conduct business. The branch office is subject to the laws of the home country and requires a licence from the Omani government.

Before setting up a company in Oman, find out about the specific requirements and conditions of the respective company form. You can obtain more information on this from InterGest Oman, based in the capital Muscat.

After selecting the appropriate legal form for a company in Oman, the next step is to register with the relevant authorities. This includes submitting all the necessary documents and fulfilling the legal requirements. Co-operation with a local business partner may be necessary, especially if foreign investors are involved. InterGest Oman has the necessary networks and experience to make it easier for companies to enter the Omani market.

Roadmap for setting up a company in Oman

1. Select the appropriate legal form.
2. Partnership with locals: In many cases, it is necessary for foreign investors to work with a local partner, especially when setting up an LLC.
3. Register the company name: The chosen company name must be registered with the relevant authorities in Oman. It is advisable to ensure that the desired name is unique and meets the legal requirements.
4. Fulfil capital requirements: Ensure that you fulfil the minimum capital requirements for the legal form you have chosen. This may vary depending on the type of company.
5. Prepare documentation: Gather all necessary documents, e.g. deeds of incorporation, articles of association, founders' IDs and other required documents.
6. Obtain official authorisations: Applying for the necessary official permits and licences can vary depending on the industry and type of business.
7. Clarify tax matters: Find out about the tax regulations in Oman and make sure you make all the necessary tax registrations.
8. Work permits: If you want to employ foreign staff, you should familiarise yourself with the regulations for work permits in advance and apply for them accordingly.
9. Cultural sensitivity: You should know and respect the business customs in Oman. Working with local partners often requires an understanding of the local business culture.

Compliance with these steps and strict adherence to the legal regulations are crucial to ensure a successful company formation in Oman. It is advisable to seek professional advice from specialised companies with the necessary knowledge to set up a company in Oman. InterGest Oman is the right partner for you.