Oman Free Zone Company Formation | Commitbiz (2024)

FAQs

How much does it cost to set up a company in Oman? ›

The minimum capital requirement expected of your LLC will depend on the nationality of your directors. For Omanis of Gulf Cooperation Council nationals, you can expect a minimum requirement of OMR 20,000. While for mixed shareholding with foreigners, you can expect a minimum requirement of OMR 150,000.

There are four operational free zones in Oman at the northern industrial city of Sohar, next to the southern port of Salalah, at Duqm in the central coastal area and at Mazunah, close to the Yemen border.

The Investor Visa

With the U.S. Oman Free Trade Agreement in place, Americans may form an entity in Oman without a local partner, provided that all the shareholders are American. 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).

Minimum capital requirement

An LLC which has foreign participation, i.e., non-Omani/GCC/US citizens, must have a minimum paid-up share capital of RO 150,000. The foreign investor may own up to 70% of the company's equity whilst the remaining 30% must be retained by a local shareholder.

Ownership structure – A freezone company formation allows 100% ownership with zero compulsion to team up with a local sponsor. In the case of LLC companies, the expat must have a local partner or a service agent. The local partner will own 51% of the shares.

Corporate Tax for Free Zone Person and Mainland. From June 2023, a corporate tax of 0% or 9% may be subjected to Free Zone Businesses and Qualifying Free Zone Persons based on their Qualifying income. However, Mainland Businesses had to face a standard 9% tax rate based on their taxable income which exceeds AED 375,000 ...

Businesses operating within Free Zones, i.e., QFZPs, can still enjoy a 0% tax rate on qualifying income. However, to be eligible for this benefit, they must meet the relevant conditions set by the tax authorities. Any non-qualifying income of QFZPs is taxable at 9%.

There are no regional or local income taxes in Oman.

Is Oman tax free for foreigners? ›

Non-residents including individuals could be subject to a withholding tax at rate of 10 percent on gross basis, if specified payments representing income is realized in Oman by them, which is not attributable to the carrying on activities in Oman through a permanent establishment (PE).

Advantages of Oman free zone companies

There are no minimum share capital requirements for Oman free zones; Exemption on corporate taxes; No duties are imposed on goods imported and exported from the free zone; Oman free trade zone companies are allowed to trade within Oman without a local agent.

Business vehicles

An LLC requires at least two shareholders whereas, an SPC has a single shareholder.

The short answer is yes, foreigners can start a 100% ownership business in Oman, but there are some regulations and requirements that they must follow. Firstly, foreigners must obtain a commercial registration, also known as a CR, from the Ministry of Commerce and Industry.

A Sole Proprietor Company (SPC) is a Single Person & 1 Visa Company, If two or more partners then an LLC will be formed Limited Liability Company (LLC).

Presently, foreign-owned LLCs necessitate a minimum share capital of OMR 150,000, but this requirement drops to OMR 20,000 if fully owned by Omani citizens, GCC, or FTA nationals. Joint stock and holding companies have higher initial capital requisites of OMR 500,000 and OMR 2 million, respectively.

Boasting a stable economy, strategic location, and a business-friendly environment, Oman presents unique advantages for those considering launching or expanding their ventures. Here are the top five benefits of starting a business in this Gulf Cooperation Council (GCC) nation.

With an economic freedom score of 61.0 and ranked 93rd freest in the 2018 Index, Oman has a high degree of economic freedom. A strong economic environment in Oman enables it to be an ideal place for foreign investors to start a business. The business setup in Oman is simple and quick.