An LLC is the most popular form of incorporation in Oman. It must have a minimum of two and a maximum of 40 shareholders. The LLC may only carry out activities set out in the objects contained in the company’s Constitutive Contract (memorandum/articles of association). The minimum capital of an LLC with a foreign shareholding is OR 150,000 ($390,000).
Foreign shareholders may own up to 70 per cent of the shares in the LLC, except for GCC or US shareholders, which can own 100 per cent of the shareholding. Foreign shareholders seeking more than 70 per cent ownership must obtain approval from the Council of Ministers, following a recommendation by the Ministry of Commerce and Industry (MCI).
In addition, the following may be noted with regards to an LLC:
- Each of the partners shall only be liable to the extent of his share in the capital
- Public subscription for raising capital is not permitted
- The day-today management of the company may be vested in a foreign manager
- In practice, national partners often play no part in the operations of the company and may give the foreign partner a power of attorney authorising him to vote in the general assembly on his behalf on permitted matters
- It is possible to provide in the Constitutive Contract, that profit and losses will be shared in a ratio different to the share capital ratio
- It is necessary to appoint an auditor who must be accredited in Oman
For more information on setting up or expanding your business in Oman click on the links to the right. You can also download a guide to company formation in Oman. Alternative please a member of our team who will be happy speak with you to discuss your requirements – call us direct on +971 2 694 8535.