Effortlessly incorporate and manage your company in Oman with Vepapu—offering all-in-one services from registration to compliance, banking, and visa support.
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Unlock Growth Opportunities in an Emerging Market
Country with low business administration costs.
Simplified compliance requirements and regulatory processes.
A large and young population provides a dynamic workforce.
Allows for foreign shareholding up to 100% in the company.
Everything You Need for Seamless Company Formation
Experience seamless company formation from anywhere with Vepapu. Our digital incorporation services ensure you can register your company online without the need to travel or submit paperwork in person.
We guide you through each step of the process, ensuring compliance with local regulations and providing support for any incorporation-related queries.
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Meet the local requirements online with Vepapu. Having a local registered office address is mandatory for your company's registration and we will help you meet this requirement. We will receive, scan, and email you if any mail is received from the authorities at your address.
You can also build a physical presence in the country by opting for our nominee director services, who will act as your company's director while you retain total control over your company.
You can capitalise on our strong banking relationships with traditional banks as well as digital-first banking providers.
You would need to physically visit the bank's location if you opt for a traditional brick-and-mortar bank, while modern digital banking providers welcome you with an online onboarding process.
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Leverage Vepapu’s expertise to navigate the visa application process for your business needs. Whether you require work visas for your team or investor visas to secure your investment rights, we facilitate the entire process.
Our services include comprehensive guidance on meeting eligibility criteria, preparing necessary documentation, and submitting applications efficiently to minimize wait times and complications.
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Mandatory documents and information required for your company formation
A certified true copy (scanned version) of the passport (valid for at least 6 months)
A comprehensive Curriculum Vitae (C.V.), Resumé, or Linkedin profile.
One of the scanned copies of a bank reference, bank statement, Utility bill, or Driver license.
It should clearly show the holder's full name along with a physical address written in English (P.O. Box addresses are not accepted).
It must be the most recent version and dated within the last 3 months.
Please provide us with certified true copy (scanned version) of the following company documents:
Certificate of Incorporation
Memorandum and Articles of Association / Constitution
Register of Director
Register of Shareholder / UBO
Extract of the company’s details from the Registrar of Companies, which can include any of the following: Business Profile / Certificate of Incumbency / Certificate of Good standing (valid for within 6 months if any).
All members of the corporation, including Directors, Shareholders, Ultimate Beneficial Owners (UBOs), and Contact persons, must provide identity and address proofs as mentioned above.
From Paperwork to Approval: Making Company Formation Fast and Straightforward
Click here and fill out the short form to let us know your requirements.
Afterwards, our team will get in touch with you to guide you through the process.
Begin the company incorporation process by sharing the requested documents, as listed here. This enables us to begin the mandatory KYC and due diligence procedures to comply with local and international laws.
During the process of due diligence, our team might request additional information, documents, or clarification as needed.
If you ever feel lost while organising the documents, please contact us, as your dedicated manager from Vepapu will guide you through it.
Our team will now have the required information and documentation in hand to proceed with completing the required paperwork involved in incorporating your company.
We will complete one or multiple application forms as required and coordinate with the registry to submit them for their official approval.
We will do timely follow-ups with the registry and actively work with them if they require any further clarification or documentation before their approval.
If there are any other registrations with different government departments that are generally required before commencement of any business, required for your specific business industry, or that you have chosen voluntarily, we will promptly complete them.
As Vepapu strongly believes that company incorporation is just the first step in any business journey, we will accompany you throughout your business's life cycle by keeping it in good standing with local rules and regulations.
We will take care of monthly, quarterly, bi-annual, or annual reports and return filings with the authorities. We will timely inform you of the upcoming compliance deadlines, such as conducting an annual general meeting, for your prompt action.
Get in touch and ask us anything. We'd love to help.
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In Oman, businesses can be incorporated under several different legal structures, each suited to specific types of operations and ownership arrangements. Here are the main business entity types available:
An LLC is the most common and popular business structure in Oman, particularly favored by small and medium-sized enterprises. The liability of each shareholder is limited to the amount they have invested in the company, protecting personal assets from business liabilities. An Omani LLC must have at least two shareholders, one of whom must be a GCC national holding at least 30% of the shares, unless specific exemptions apply. The minimum capital requirement is OMR 150,000 (approximately USD 390,117).
This type of LLC allows foreign investors to own 100% of the company shares. However, to establish a wholly foreign-owned LLC, the business must receive approval from the Ministry of Commerce and Industry, requiring a detailed business plan that outlines the investment's impact on the Omani economy, such as job creation. The minimum capital requirement is OMR 1,000,000 (approximately USD 2,600,780).
A Joint Stock Company is suitable for larger businesses and those that plan to offer shares to the public. It can be structured as a Public Joint Stock Company (SAOG) or a Closed Joint Stock Company (SAOC). SAOGs can trade their shares publicly, whereas SAOCs have a restricted number of shareholders. The minimum capital requirement for a SAOG is OMR 150,000 (approximately USD 390,117), while a SAOC requires a minimum of OMR 50,000 (approximately USD 130,000).
Businesses incorporated in an Omani free zone enjoy several benefits, including 100% foreign ownership, exemption from corporate income tax, and no minimum capital requirement. Free Zone Companies are particularly attractive to manufacturing and logistics firms looking to use Oman as a base for regional expansion. Additionally, these companies have lower Omanization requirements.
A Limited Partnership consists of at least one general partner with unlimited liability and one limited partner whose liability is limited to their capital contribution. The general partner is responsible for managing the partnership, while the limited partner typically plays a passive role. This structure is suitable for partnerships where there is a desire to limit liability for some partners.
A Branch Office allows a foreign company to conduct business in Oman without creating a separate legal entity. It is usually established to fulfill a specific contract or project in Oman. The branch is subject to local laws and regulations, and typically, a local agent is required to assist with the registration process. A bank guarantee of approximately USD 390,000 is also required.
This structure is ideal for foreign companies that wish to establish a non-commercial presence in Oman, focusing on market research, promotion, and liaison activities. A Representative Office cannot engage in commercial transactions or generate revenue within Oman.
Foreign companies that wish to enter the Omani market without establishing a physical presence can do so through a local Commercial Agency. This arrangement allows the foreign company to market and sell its products or services through a local agent, who handles the local market's legal and regulatory aspects. The agreement must be registered with the Ministry of Commerce and Industry, and the foreign company remains responsible for corporate income tax on revenues generated in Oman.
Yes, foreigners can incorporate a company in Oman, particularly through a Limited Liability Company (LLC) or by establishing a business within one of Oman's Free Zones. Oman's legal framework allows foreign investors to own up to 100% of the shares in a company, but certain conditions and approvals are required. For a wholly foreign-owned LLC, the business must receive permission from the Ministry of Commerce, Industry, and Investment Promotion (MOCI). This process involves submitting a detailed business plan that highlights the investment's potential benefits to the Omani economy, such as job creation and technology transfer. This structure is particularly favored by foreign investors in sectors like manufacturing, construction, and services, providing flexibility and control while aligning with Oman's economic goals.
Oman has made significant reforms in its Foreign Direct Investment (FDI) policies to attract more foreign investors. These reforms include the issuance of the new Foreign Capital Investment Law in 2019, which simplifies the process for foreign investors and reduces bureaucratic hurdles. The law allows 100% foreign ownership in most sectors, removing the previous requirement for a local Omani partner. Additionally, businesses established in Oman's Free Zones benefit from several incentives, such as tax exemptions, no minimum capital requirements, and full repatriation of profits and capital. Free Zones like the Sohar Freezone and Salalah Freezone are designed to attract foreign investment by offering strategic locations, excellent infrastructure, and simplified administrative procedures.
A wholly foreign-owned LLC or freezone company in Oman requires at least one director. There are no restrictions on the nationality of directors, allowing foreign nationals to fully manage and control the company. Corporate directors are permitted, offering flexibility for foreign parent companies to appoint an entity as a director. Additionally, nominee directors can be appointed to represent the interests of shareholders or corporate entities.
For a wholly foreign-owned LLC outside of free zones, a minimum of two shareholders is required, whereas a freezone company can be established with just one shareholder. Both types allow 100% foreign ownership, meaning foreign nationals or foreign entities can own the company entirely. Corporate shareholders are allowed, and nominee shareholders can also be utilized to provide flexibility in structuring ownership.
A wholly foreign-owned LLC requires a minimum share capital of OMR 1,000,000 (approximately USD 2,600,780). In contrast, freezone companies often have no minimum share capital requirement, making them more accessible and cost-effective for foreign investors, especially for smaller businesses or startups looking to establish a presence in Oman.
Neither wholly foreign-owned LLCs nor freezone companies require an Omani partner, as they allow for 100% foreign ownership. This is particularly advantageous for foreign investors who seek full control over their business operations without the need to share ownership with a local partner.
Both LLCs and freezone companies must have a registered physical office in Oman. For an LLC outside of free zones, the office must be located in the local market and meet specific regulatory requirements. Freezone companies, on the other hand, must be registered within the designated freezone area, where they can access a range of office options that are often more flexible and cost-effective, tailored to the needs of different business activities.
To incorporate a company in Oman, you need to prepare and submit various documents. These documents are essential to comply with Omanis regulations and ensure your business operates legally. The documents will be used in KYC due diligence procedures, application preparation, and document submission to the authorities.
Once you've chosen your business structure, you must draft the Memorandum of Association (MOA) and Articles of Association (AOA). These documents outline the company's objectives, internal governance rules, and shareholder rights and responsibilities. After drafting, these documents must be notarized by a public notary in Oman, ensuring their legal validity and compliance with Omani corporate law.
After the MOA and AOA have been notarized, the next step is to open a capital account in a local bank in Oman. This account is used to deposit the initial capital required for the company's incorporation. The amount deposited must comply with the minimum capital requirements for your chosen business structure. Once the capital is deposited, the bank will issue a Share Capital Certificate, which is required for the next steps in the incorporation process.
Registering with the Oman Chamber of Commerce and Industry (OCCI) is a mandatory step in the incorporation process. This registration ensures that your company complies with the commercial rules and regulations in Oman. The OCCI registration also provides your company with a membership certificate, which is necessary for various legal and business transactions within the country.
To officially register your business, you must submit the necessary documents, including the Municipality Approval, Share Capital Certificate, and Legalized Opening Forms, to the Ministry of Commerce, Industry, and Investment Promotion (MOCI). This step formalizes the company's legal status in Oman and allows it to operate within the legal framework of the country.
Depending on the nature and scope of your business activities, you may need to obtain additional approvals from relevant government authorities. This could include registration with the Import-Export Authority of Oman, environmental permits, or industrial licenses. Additionally, you must register with the Ministry of Manpower, the Royal Oman Police, and the local municipality, as well as complete tax registration with the tax department. These approvals ensure that your business is fully compliant with all regulatory requirements.
After gathering all necessary approvals, you must obtain final approval from the Ministry, leading to the issuance of a commercial registration certificate. This certificate officially recognizes your company as a legal entity in Oman and allows you to start business operations. The commercial registration is a critical document that serves as proof of your company's legal existence.
Depending on the specific activities your company will engage in, you may need to secure additional licenses from relevant authorities, such as the Ministry of Manpower or the Ministry of Regional Municipalities. These licenses are necessary for businesses involved in specialized sectors like healthcare, education, or manufacturing, ensuring compliance with sector-specific regulations.
Finally, after completing all registration and licensing steps, you must obtain a company seal. The company seal is an essential tool for the business, as it is used to officially endorse documents, contracts, and other legal paperwork. The seal represents the company's legal identity and is a critical component of its operations in Oman.
Once a company is incorporated in Oman, it must adhere to several post-incorporation compliance procedures to ensure it remains in good standing with the country's laws and regulations. One of the first steps is obtaining a Tax Card from the Tax Authority within 30 days of registration. The Tax Card is essential for various business activities, including opening bank accounts, signing contracts, and filing tax returns. Additionally, companies must register their employees with the Public Authority for Social Insurance (PASI) within 15 days of employment commencement. This registration requires employers to contribute to the social security fund on behalf of their employees, ensuring compliance with Oman's labor laws.
Furthermore, companies with an annual turnover exceeding OMR 38,500 (approximately USD 100,000) must register for Value Added Tax (VAT). This involves obtaining a VAT registration number and submitting periodic VAT returns to the tax authorities. Depending on the business's nature, additional licenses and permits may be required, such as building permits for construction companies. Companies must also maintain accurate and up-to-date financial records of all transactions, including invoices, receipts, and contracts, to comply with Oman's legal and financial requirements.
Oman's financial fiscal year aligns with the calendar year, but newly established companies have the flexibility to choose an opening period of either 12 months or up to 18 months. Within six months after the end of the financial year, companies are required to file an annual income tax return accompanied by audited financial statements and pay any taxes due. The company’s accounting records must be maintained for at least 10 years following the end of the accounting period, ensuring compliance with local regulations.
In preparing financial statements, companies in Oman must generally adhere to the International Financial Reporting Standards (IFRS). These statements should include a comprehensive view of the financial position, income, changes in equity, and cash flows. It is also mandatory for the financial reports to be submitted in Arabic, although they may be prepared in another language and translated into Arabic for official submission. This requirement underscores the importance of local language proficiency in ensuring that all regulatory filings meet Omani standards.
Employers in Oman are responsible for obtaining Employment Visas for foreign employees aged 21 years and older. To acquire this visa, the employer must first secure official authorization from the Ministry of Manpower, which includes compliance with Omanization requirements. These requirements mandate that a certain proportion of the workforce must be Omani nationals. The Employment Visa is valid for two years and allows multiple entries into the country. However, visa holders are restricted from leaving Oman for more than six months at a time, unless they are family members of the visa holder.
Foreign investors looking to establish or expand their business in Oman can apply for an Investor Visa, which is granted upon approval from the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP). This visa offers the flexibility of long-term residency, with options for five or ten years, and can be renewed. The Investor Visa program is part of Oman's broader efforts to attract quality investments and align with the country's Vision 2040 goals. Investors must meet specific financial criteria, such as demonstrating a significant investment in the local economy or owning property with a certain minimum value. The visa also allows investors to sponsor their family members, providing a pathway for long-term residence in Oman.
In Oman, the general Corporate Income Tax rate for companies is 15%, making it a straightforward system for most businesses. However, specific industries, such as oil companies, are subject to a significantly higher tax rate of up to 55%, reflecting the strategic importance and profitability of the oil sector in Oman. Small and medium-sized enterprises (SMEs) can benefit from a reduced Corporate Income Tax rate of 3%, provided they meet certain criteria. These include having an authorized share capital not exceeding OMR 50,000, gross income of less than OMR 100,000, fewer than 15 employees, and not being engaged in transport, extraction of natural resources, or financial services.
Oman has a favorable tax regime for companies looking to distribute dividends to non-residents. There is no withholding tax on dividends paid to foreign shareholders, provided they have a permanent establishment in Oman. However, a 10% withholding tax is imposed on payments to foreign companies without a permanent establishment in the country.
Capital gains in Oman are subject to the standard Corporate Income Tax rate of 15%. This applies to gains realized from the sale of assets, shares, or other investments.
Several categories of businesses in Oman are exempt from paying income tax, which enhances the country's attractiveness as an investment destination. These exemptions include profits from the disposal of securities listed on the Muscat Stock Market, foreign companies engaged in oil and gas exploration, foreign companies working on government projects, dividends received from Omani companies, Omani marine companies, investment funds, and foreign airlines.
Oman does not impose personal income tax, which is a significant advantage for expatriates and foreign investors. However, the country does levy withholding taxes and indirect taxes, such as Value Added Tax (VAT), which was introduced at a rate of 5% in April 2021. Companies operating in Oman must comply with VAT regulations, including registration, invoicing, and periodic filing of returns.
