Limited Liability Company (LLC)
ุดุฑูุฉ ุฐุงุช ู ุณุคูููุฉ ู ุญุฏูุฏุฉ
Company formation in Oman
The LLC is best suited for: Small and medium enterprises entering the Omani market, Foreign entrepreneurs seeking a straightforward mainland structure, Consultancies, trading firms, and service companies, Companies wanting full control without a public listing. LLCs in Oman are subject to 15% corporate income tax on worldwide income. Small companies with annual revenue below OMR 100,000 may qualify for a reduced 3% rate under certain conditions. VAT applies at 5% on most goods and services. No personal income tax. Withholding tax of 10% applies on payments to non-residents for royalties, management fees, and service fees. Dividends paid to non-residents are subject to 10% withholding tax. Oman has an extensive network of double tax treaties to mitigate cross-border tax burdens.
- Small and medium enterprises entering the Omani market
- Foreign entrepreneurs seeking a straightforward mainland structure
- Consultancies, trading firms, and service companies
- Companies wanting full control without a public listing
Key Facts
Step-by-Step Formation Process
Reserve a company name with MOCIIP
Submit a name reservation request through the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) portal, Invest Easy. The proposed name must be unique, in Arabic, and compliant with Omani naming rules.
Draft and notarise the Memorandum of Association
Prepare the Memorandum of Association specifying shareholders, capital contributions, management structure, and business activities. The MOA must be notarised at an Omani notary public.
Deposit minimum share capital
Deposit the full OMR 20,000 minimum capital into a temporary bank account opened in the company's name. The bank issues a capital deposit certificate required for registration.
Submit incorporation application via Invest Easy
Upload all required documents through the Invest Easy portal, including the notarised MOA, capital deposit certificate, passport copies, and activity-specific approvals. Pay the registration fee.
Obtain the Commercial Registration certificate
Once MOCIIP approves the application, the Commercial Registration (CR) is issued. Register with the Oman Tax Authority for corporate income tax and VAT, and with the Public Authority for Social Insurance if hiring Omani employees.
Required Documents
- Passport copies of all shareholders and directors
- Proof of residential address for each shareholder
- Notarised Memorandum of Association (Arabic)
- Capital deposit certificate from an Omani bank
- Registered office lease agreement
- Power of Attorney if applying through a representative (notarised and legalised)
- Activity-specific approvals from relevant ministries (if applicable)
Cost Overview
Tax Treatment
LLCs in Oman are subject to 15% corporate income tax on worldwide income. Small companies with annual revenue below OMR 100,000 may qualify for a reduced 3% rate under certain conditions. VAT applies at 5% on most goods and services. No personal income tax. Withholding tax of 10% applies on payments to non-residents for royalties, management fees, and service fees. Dividends paid to non-residents are subject to 10% withholding tax. Oman has an extensive network of double tax treaties to mitigate cross-border tax burdens.
Pros & Cons
- 100% foreign ownership permitted in most sectors since the 2019 reforms
- Strategic location on the Indian Ocean with access to GCC, East Africa, and South Asia
- Lower operating costs than UAE or Qatar while maintaining GCC benefits
- Stable political environment and government committed to economic diversification (Oman Vision 2040)
- Growing free zone ecosystem with attractive incentive packages
- Relatively high minimum capital requirement of OMR 20,000 compared to other GCC states
- Omanisation quotas require a percentage of staff to be Omani nationals
- Smaller domestic market (~5 million population) than Saudi Arabia or UAE
- Corporate tax rate of 15% is higher than Bahrain (0%) and UAE (9%)
- Bureaucratic processes can be slower than more digitised GCC peers
Other Structures in Oman
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.