An LLC is the most common type of business entity used in Oman due to its straightforward and quick formation, easier banking, relaxed share capital requirements etc The business operates under a company name and ownership of the company 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 a 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
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.
- 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 activities.
- Pursuant to a Free Trade Agreement between Oman and the USUS 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 a 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).
- Corporate Income Tax – 15%
- Withholding Tax – 10%
- Customs Duty – 5%
Governing body approvals
Certain activities require additional approvals, for example Ministry of Transportation for many transportation/logistics related activities, Ministry of Health for all medical related business activities, Food Control Department of Municipality for all food-related license etc.
All foreign companies have to comply with the Omanization requirements. Mainland companies are subjects to 25%-50% Omanization rate.
Commercial Registration Renewal
Commercial Registration is due to renewal every 5 years
Benefits of Collaborating with PRO Partner Group
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