Complete Guide to Business Formation Cost in Oman for Entrepreneurs

Starting a business is more than just a bold move—it’s a life-changing leap. And if you’ve been captivated by Oman’s thriving economy, strategic location, and investor-friendly policies, you’re not alone. But before excitement takes the wheel, let’s talk about the real deal-breaker for every entrepreneur: understanding the business formation cost in Oman.

At Al Mawaleh, we know that clear, reliable information can make the difference between a smooth launch and a costly surprise. That’s why this guide strips away the fluff and lays out every major cost you’ll face—helping you plan with confidence.

1. Oman Company Registration Fees

The first step to setting up your company is official registration with Oman’s Ministry of Commerce, Industry, and Investment Promotion (MOCIIP).

  • Estimated Cost: OMR 150 – 500

The exact fee depends on your business structure—whether you choose an LLC, sole proprietorship, or branch office.

2. Business License Cost in Oman

Every business must secure the right license before starting operations.

  • Annual Cost Range: OMR 250 – 3,000

Fees vary based on the business activity, location, and size of your operation. Certain sectors, such as industrial or specialized services, can have higher licensing costs.

3. Free Zone Setup Cost in Oman

If you’re aiming for tax exemptions, 100% foreign ownership, and simplified import/export procedures, Oman’s free zones (such as Sohar, Salalah, and Duqm) are worth exploring.

  • Setup Cost Range: OMR 1,500 – 5,000 depending on the zone and package selected.
  • Free zones often bundle registration, licensing, and office space into one package for convenience.

4. Visa and Labor Card Fees in Oman

Hiring employees? You’ll need to factor in visa and labor card costs.

  • Work Visa: Around OMR 300 per expatriate employee.
  • Labor Card: Approximately OMR 50 per employee.
    These costs can add up quickly if you plan to hire a larger team

5. Office Rental Cost in Oman

Your choice of office location can significantly impact your budget.

  • Muscat Prime Areas: OMR 10 – 15 per m² per month
  • Other Cities/Areas: OMR 5 – 8 per m² per month
    Co-working spaces are becoming increasingly popular for startups looking to reduce overhead.

6. Legal Documentation Cost in Oman

  • From drafting articles of association to notarization, legal costs are a must in your setup budget.

    • Estimated Cost: OMR 500 – 2,000 depending on the complexity of your business structure.
      Engaging a local legal advisor ensures you comply with Omani regulations from day one.

Quick Estimated Cost Breakdown

Expense

Cost (OMR)

Company Registration

150 – 500

Business License (Annual)

250 – 3,000

Free Zone Setup

1,500 – 5,000

Visa + Labor Card (per hire)

~350

Office Rental

5 – 15 per m²/month

Legal Documentation

500 – 2,000

Why Accurate Cost Planning Matters

Inaccurate budgeting can sink a business before it even sets sail. By understanding every component of the business formation cost in Oman, entrepreneurs can secure funding, avoid hidden expenses, and choose the right setup strategy—whether in a free zone or the mainland.

Conclusion – Building Your Business with Clarity

Launching a company in Oman can be one of the most rewarding decisions you make as an entrepreneur, but it begins with knowing the numbers. From Oman company registration fees to office rental cost in Oman, every detail counts. At Al Mawaleh, we’re committed to providing the transparency and local expertise you need to start strong and grow confidently.

Your dream business deserves a foundation built on clarity—let’s make that happen.

📞 Contact Al Mawaleh today at +968 7733 8545

🌐 Visit: https://mawaleh.com

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