Company Formation in Oman

Turn your idea into reality: Start your company, stress-free.

company formation in oman

Setting up a business in Oman is no longer just an opportunity — it’s a strategic move. With 100% foreign ownership now allowed in many sectors, zero personal income tax, and rapidly growing free zones, Oman is quickly becoming a hotspot for entrepreneurs, startups, and investors looking to expand into the GCC region. Whether you’re eyeing a limited company formation, a free zone setup, or a full-scale LLC company formation in Oman, understanding the latest laws, documentation, and procedures is essential. That’s where Al Mawaleh steps in — offering end-to-end company formation services in Oman backed by expertise, speed, and full compliance with local regulations.

Business formation demands a deep understanding of company formation law in Oman, market trends, and cost structures. That’s why many turn to business setup consultants and company formation agents like Al Mawaleh to streamline the process. From choosing the right company document format and drafting agreements to understanding the business setup cost in Oman, we ensure no detail is overlooked.

Understanding the Business Landscape in Oman

Before diving into paperwork, it’s crucial to understand why business formation in Oman is so appealing in 2025. Oman’s Vision 2040 has opened doors for foreign investment across key industries like logistics, tourism, mining, manufacturing, and IT. The government has streamlined company registration in Oman through the Ministry of Commerce, Industry and Investment Promotion (MOCIIP), allowing for faster approvals and reduced bureaucracy.

You’ll find both mainland and free zone company formation options in Oman, each with its own advantages. Free zones offer full repatriation of profits, customs exemptions, and simplified company registration in Oman, making them a top choice for export-oriented businesses. Meanwhile, mainland setups allow greater flexibility when dealing directly with the local market.

Legal and Regulatory Framework

Oman’s foreign investment law allows up to 100% foreign ownership in many sectors without needing a local sponsor. However, certain regulated activities may still require a local partner or agent. Our legal specialists guide you in compliance and assist with drafting formal paperwork — whether it’s a formal company letter format, contracts, or a resignation letter format for company employees

Businesses must comply with:

  • The Commercial Companies Law
  • Oman Tax Authority regulations
  • Labor and Omanisation requirements
  • Data protection and anti-money laundering policies
company formation in oman

Types of Business Entities in Oman

Choosing the right legal structure is the first major decision when starting a business. Understanding the structure that best suits your goals is vital — whether you’re looking for ltd company formation, LLC company formation , or a low-commitment branch. In Oman, the most common types of companies include:

  • Limited Liability Company (LLC): Popular among foreign investors. Requires at least one shareholder. Capital requirement starts from OMR 20,000 for most activities. A top choice for ltd company formation.
  • Joint Stock Company (SAOC/SAOG): Suitable for large-scale projects. These entities can issue public shares and are highly regulated.
  • Branch Office: Allows foreign companies to operate in Oman under their parent company name, subject to sectoral restrictions.
  • Representative Office: A non-trading entity used for research or marketing. Cannot generate income locally.
  • Sole Proprietorship: Available only to Omani or GCC nationals; not open to foreign investors.

     

Step-by-Step Guide to Company Formation in Oman

  • Trade Name Reservation: Submit name options via the MOCIIP portal.
  • Draft Company Documents: Prepare the Memorandum of Association, Articles of Association, and other legal documents in an approved company document format.
  • Submit Application: File your request with the MOCIIP along with shareholder documents and lease agreements.
  • Obtain Licenses: Secure commercial, municipal, and industry-specific licenses.
  • Open a Corporate Bank Account: Submit your company profile format and legal documents to the bank.
  • Register with Tax & Labor Authorities: Register for VAT (5%) if applicable and for employee registration with the Ministry of Labor.

The process typically takes 7–14 working days with the support of experienced company formation agent.

Required Documents for Company Formation in Oman

Our team at Al Mawaleh assists in preparing all formats — from a clean company profile format to a valid agreement format between company and client — aligned with local authority expectations. To ensure smooth company registration in Oman, you will need to prepare the following:

For Individual Shareholders:

  • Valid passport copies
  • Recent photograph
  • Address proof
  • No Objection Certificate (if a GCC resident)
  • Power of Attorney (if appointing a representative)

For Corporate Shareholders:

  • Certificate of Incorporation
  • Board Resolution
  • Memorandum & Articles of Association
  • Passport copy of authorized signatory

Other Documentation:

  • Lease agreement for office premises
  • Activity-specific approvals (e.g., medical, food, or education sectors)

Costs Involved in Setting Up a Company

At Al Mawaleh, we also provide a detailed company quotation format upon request — itemized and fully transparent. Here’s a general estimate of the business setup cost in Oman:

Service

Cost (Approx.)

Trade name registration

OMR 50

Commercial registration

OMR 100–300

License fees (activity-based)

OMR 150–1000

Legal documentation & translation

OMR 200–500

Office rent (Muscat, small office)

OMR 200+/month

Visa & labor card per person

OMR 300–500

Note: Costs vary based on sector, location, and activity.

Why Choose Al Mawaleh for Company Formation

When it comes to company formation services, experience matters. At Al Mawaleh, we combine legal precision, market insight, and personalized consulting to simplify every stage of your journey — from planning to launch.

We handle everything:

  • Business name reservation
  • Legal documentation and approvals
  • Office lease and PRO services
  • Bank account assistance
  • Post-registration compliance

If you’re looking for the best company formation agent in Oman who delivers speed, transparency, and deep knowledge of companies formation law in Oman, you’re in the right place.

Book an Appointment:

Ready to take your finances to the next level? Book an appointment with Al Mawaleh today! Our professional team is here to provide personalized solutions that clarify finances and build trust. Let’s work together to ensure your business’s financial success.

FAQ's:

What are the benefits of setting up a company in Oman?

100% foreign ownership no income tax and location via Oman company formation.

Choose your business activity and structure, reserve a trade name, prepare legal documents, and register with MOCIIP with support from a trusted company formation agent like Al Mawaleh.

We guide you to register a ltd company as your best company formation agent.

 Yes. In most sectors, 100% foreign ownership is now allowed without a local sponsor.

Tax exemptions, full profit repatriation, and no import/export duties.