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
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.
Share Capital Requirement
-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.
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
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
Book a call with one of our company formation specialists.
Business Development Manager
Business Consultant – Abu Dhabi
Business Consultant - Qatar
Head of Operations
Head of Corporate Structuring