Limited Liability Company in Oman, PRO Services in Oman

How to set up an Oman LLC

Limited Liability Companies (LLC) are most popular for foreign business formation in Oman. Foreign investors could previously only own 70% of their business with an Omani partner owning the remaining 30%. However, in January of 2020 the Foreign Capital Investment Law (FCIL) by Royal Decree No: 50/2019 allowed foreign investors 100% ownership of their businesses in many industries in mainland Oman.

There remain approximately 40 Omani reserved activities including manpower recruitment, vehicle repairs and fuelling stations and traditional Omani products such as making of Omani sweets and Omani Khanjar.

Why choose an LLC in Oman?

An LLC gives you limited liability, access to the local market and a structure that’s recognised and trusted across Oman. You can have up to 50 shareholders, and in most sectors, foreign investors are allowed full ownership without needing a local partner. Some activities still fall under the restricted list and may need government approval or an Omani shareholder, so it’s worth checking early. But for a wide range of commercial and professional services, the LLC remains the go-to setup.

Benefits

Some of the key benefits for setting up an LLC in Oman would include

100% foreign ownership allowed for majority of business activities

Only one shareholder and one director are required

No restrictions on shareholder or director nationality

Commercial registration is valid for 5 years

Quick formation process

Foreign companies registered in accordance with FCIL and invest in sectors which align with economic diversification

How to open an LLC in Oman

Oman has opened the door wider for foreign investors in recent years, with fewer ownership restrictions and a more straightforward setup process. For many, the Limited Liability Company remains the go-to structure—offering flexibility, credibility and limited risk for shareholders. Whether you're planning to start a small local operation or a larger venture with international partners, setting up an LLC gives you a solid foundation. This guide breaks down the key steps, requirements and costs involved, so you know exactly what to expect before you begin.

Requirements

Oman LLC setup process:

Choose your activity and reserve a name
To get started, you’ll need to decide on your business activity and confirm that it’s permitted for foreign-owned LLCs. The next step is reserving a company name through the Ministry of Commerce, Industry and Investment Promotion (MOCIIP). The name must be unique, relevant to your activity and meet Oman’s naming rules.

Draft and notarise founding documents
Once the name is approved, you'll draft your Memorandum and Articles of Association. These outline your business structure, shareholder details and how the company will operate. Both documents must be signed and notarised before submission.

Register the company
With your documents in order, you can apply for the Commercial Registration Certificate from MOCIIP. At this point, you’ll also need to register with the Oman Chamber of Commerce and Industry (OCCI). These steps give your company legal standing.

Apply for licences and tax registration
Next, apply for the licences or permits tied to your business activity. Some sectors require further clearances from specific ministries or regulators, so check early. Once your business is registered, you’ll also need to register with the Oman Tax Authority. Corporate tax is currently 15%, and VAT may apply depending on your turnover.

Set up a bank account and office address
A corporate bank account is also required. Some banks may ask for a certificate showing the initial capital has been deposited, though this isn’t always enforced for all activities. You must also have a registered office address in Oman, even if you’re working remotely.

Final steps and timelines
Depending on what your business does, you might also need to register with the Royal Oman Police, the Ministry of Manpower, or local municipalities.

Documents required:

Passport copies of shareholders and authorised signatories
Approved form detailing names and signatures of authorised signatories
Company registration forms
Proof of initial capital through bank statement

Ownership, capital and compliance

Most LLCs in Oman can now be fully foreign-owned, thanks to the Foreign Capital Investment Law introduced in 2020. That said, approval still depends on the business activity and is often granted case by case.

There’s no fixed minimum capital for most sectors, but some regulated activities still require a paid-up share capital, often starting from OMR 150,000.

Once up and running, your company must meet standard compliance duties. These include renewing your commercial licence each year, meeting Omanisation targets, filing annual tax returns, and registering for VAT if your turnover crosses the threshold. Corporate tax is set at 15%, and VAT currently stands at 5%.

Costs to expect

Setting up an LLC in Oman comes with a few core costs. Registration fees usually fall between OMR 150 and OMR 500, while business licences can range from OMR 250 up to OMR 3,000, depending on your activity and company grade. You’ll also need to factor in notary and legal fees, along with the cost of renting office space, which is mandatory.

Optional costs might include consultancy or PRO support. The total outlay varies by business type, ownership setup and sector.

How can we help?

Sovereign PPG can assist with setting up a 100% Foreign Owned Limited Liability Company (LLC) in Oman. We can also assist with restructuring existing companies to allow 100% Foreign ownership. Our expert consultants and PROs on the ground in Muscat have close government relations that can help ease the process of company formation and continue to support post-incorporation with other corporate services such as HR services, Payroll, Accountancy.