For a range of businesses and industries, Oman is a valuable market. Although the pandemic affected almost every country, Oman has taken serious measures to combat it.
Every business, from a sole proprietorship to a multibillion-dollar corporation, may thrive in Oman.
Company structures
Explained below are the company structures in Oman
Limited Liability Company
In a limited liability company (LLC), each shareholder’s liability is restricted to their share of the capital. An LLC corporation in Oman requires a minimum of two shareholders (at least one of whom must be a citizen of Oman, a Gulf Cooperation Council (GCC) state, or the United States, and must own more than 30% of the company’s shares) and one director. The minimum capital necessary to incorporate an LLC in Oman is OR 150,000. (approximately 390,000 USD). An Omani LLC is the most popular company structure for foreigners wishing to create a business in Oman.
Public Joint Stock Company
Stocks are dispersed as part of a joint-stock company’s capital. In Oman, the shares of a public joint-stock corporation can be traded openly. To start such a business, you’ll need a minimum share capital of OR 150,000. (about 390,000 USD). A joint-stock company cannot be founded without the approval of the Ministry of Commerce and Industry, which is evidenced by the issuance of a license.
Private Joint Stock Company
A private joint-stock firm is one whose stock is not traded on the open market. A private joint-stock company in Oman must have a minimum share capital of OR 50,000 and at least three owners (one of whom must be an Omani citizen owning at least 30% of the total shares) (about 130,000 USD).
Limited partnership
In Oman, two or more people can form a limited partnership. At least one general and one limited partner must be registered. All of the partnership’s debts and liabilities are personally liable to the general partner, who must be an Omani national. Only to the extent of his or her capital contribution is the limited partner responsible for the company’s obligations and liabilities.
Commercial Agency
In Oman, a commercial agency is a company tasked with advertising or distributing the products or services of a foreign company in the Sultanate. The main goal of such a company is to help foreign companies export goods and services to Oman. A commercial agent in an Oman commercial agency can only be an Omani native registered with the Omani Chamber of Commerce or a local organization having at least 51 percent local shareholding.
Branch Office
A foreign company looking to establish a presence in Oman might open a branch office there. To open a branch, you’ll need a local agent to sponsor Omani visas and licenses. The Ministry of Commerce and Industry must additionally provide clearance to the branch (MOCI). Because a branch is not a separate legal entity from its parent, the latter is accountable for its actions and responsibilities.
Representative Office
A representative office could be set up primarily to do market research or promote a product. Engaging in commercial or business activities is prohibited. For a representative office in Oman, at least one designated individual who is a resident of Oman is required.
Free trade zones in Oman
Establishing a business in any foreign country necessitates large investments that must be borne by the proprietors.
This may be difficult at first for a sole proprietorship or a joint proprietorship. To help leverage and develop business opportunities, the Omani government has created free zones, which are low-cost firm establishment zones.
There are now five free zones in the country, including:
- Al Mazunah Free Trade Zone
- Duqm Special Economic Zone
- Salalah Free Zone
- Sea Ports of Oman
- Sohar Free Trade Zone
