LIMITED LIABILITY COMPANY

Limited Liability Company (LLC)

An LLC is the most common type of business entity used in Oman due to, amongst other things its straightforward and quick formation, easier banking and relaxed share capital requirements. The business operates under a company name and ownership of the company is in the form of shares in the capital of the company, the liability for each shareholder is limited to the portion of their own capital contributions. Foreign companies and individuals are generally required to have an Omani partner (individual or company) with a minimum 30% shareholding in order to form an LLC.

How is an LLC Company in Oman Set Up and Structured?

One of the key advantages of an LLC setup is that foreign partners have limited liability exposure due to their share in the total investment capital. Minimum share capital of OMR 150,000 ($390,000) is no longer required to be deposited to register an LLC with foreign participation. However, a part of this amount has to be available as proof of funds. Exceptions to this rule include some activities such as real estate and recruitment that can only be completed by 100 percent locally owned entities. Our company formation specialists will advise you on the best way to structure your business, based on the activities you wish to undertake.

Fast Facts: LLC's in Oman

• GCC companies that are 100% owned by GCC/US nationals, or GCC/US nationals themselves, may establish an LLC without a local partner for approved activities.
• The minimum share capital for LLCs with GCC/US ownership is OMR 20,000 (52,000 USD).
• A commercial registration is only issued for LLC entities that already have a physical office or business space.
• Any document written in a foreign language should be translated into Arabic by a legal translator and duly certified by the Ministry of Foreign Affairs and Ministry of Justice, for companies incorporated abroad.
• commercial registration is valid for 5 years.

Overview of Business:
A mainland registered entity is allowed to carry out its business activities throughout the Oman market. It can work with anyone inside or outside Oman with no restrictions.

Ownership Structure

• Foreign companies and individuals are generally required to have an Omani partner (individual or company) with a minimum 30% shareholding in order to form an LLC
• GCC companies that are 100% owned by GCC nationals, or GCC nationals themselves, may establish an LLC without a local partner for approved activiti
• Pursuant to a Free Trade Agreement between Oman and the US, persons may form an entity in Oman without a local partner, provided that all the shareholders are US persons.

Share Capital Requirement

•  Minimum share capital of OMR 150,000 ($390,000) is no longer required to be deposited to register an LLC with foreign participation. However, a part of this amount has to be available as proof of funds.
• The minimum share capital for LLCs with local or GCC ownership, or for those qualifying under the US FTA is OMR 20,000 ($52,000).

Taxation

 -Corporate Income Tax – 15%
- Withholding Tax – 10%
- Customs Duty – 5%

Governing body approvals
Certain activities require additional approvals, for example the Ministry of Transportation for many transportation/logistics related activities, the Ministry of Health for all medical related business activities and the Food Control Department of Municipality for all food-related licences.

Omanisation requirements
All foreign companies have to comply with the Omanisation requirements. Mainland companies are subject to 25%-50% Omanisation rate.

Commercial Registration Renewal
Commercial registration is due for renewal every 5 years

Benefits of Collaborating with PRO Partner Group

• We will use our full expertise and experience to manage all required documents in order to set up your business in a timely manner. This involves visa applications, licences, labour quotas, professional translation services and opening of corporate bank accounts.
• With us as your service provider, your general manager can freely manage your company’s daily operations without any form of interference.
• PRO Partner Group does not hold an interest in your profits or turnover. Right from the start, a set fee will be legally agreed upon to ensure stability and to make it more financially efficient.
• You will have consistent access to ongoing services and round-the-clock support through our corporate office.
• Access networking partnerships with key local contracts and government agencies.
• If you decide to end your partnership with us, we will be sad to see you go but rest assured that we will still assist you in either terminating your licence or in transferring your shareholding to another sponsor as seamlessly as possible and without penalty.

At PRO Partner Group we always make sure to provide you with honest answers, transparency, consistent reliability, and feasible timeframes, so you are fully informed and updated at all times