Limited Liability Company

The Limited Liability Company (LLC) is the most common type of business entity used in Oman. The business
operates under a company name and ownership of the company is in the form of shares in the capital of the
company. Much like limited liability companies, the liability for each shareholder is limited to the portion of their
own capital contributions. In the LLC the directors are personally responsible for the prudent management of the
company, and are not required to be shareholders.
LLCs in Oman may not engage in banking, financial guarantees, or commercial aviation activities. They are required
to withhold 10% of their net profits after tax as legal reserve. The annual shareholders meeting should be held
within six months of the financial year end.
Liability
Liability of each shareholder is only limited to the capital they have invested in.
Minimum Ownership
At least one Omani partner with a minimum of 30% shareholding. Companies 100% owned by GCC shareholders
do not require a local Omani partner.
Number of Founding Members
At least two shareholders, up to a maximum of 40.
Minimum Capital Requirements
OMR 150,000 for public joint stock companies or companies with foreign participation. OMR 50,000 for closed
joint stock companies.
Procedure:
1. Initial capital deposit in bank
The capital of a LLC must be fully paid at the time of registration. The founding members must deposit the
minimum required capital depending on their foreign shareholdings status.
2. Registration at the Commercial Registry of the Ministry of Commerce and Industry
The company must submit a name for approval to the Ministry of Commerce and Industry (MOCI) that has not
been taken. Company names with certain words require a higher starting share capital, such as “Oman”. This is
done online.
Once the name has been checked, the application form and the following documents must be submitted to the
one-stop shop at MOCI:
 Copy of passport or identity cards of shareholders
 Copy of passport or identity cards of all intended authorized signatories
 Approved authorized signatory form, with names and sample signatures of each authorized signatory reproduced
 Standard company registration forms, including constitutive contract and articles of association
 Application for specific licenses depending on the company’s activities
 Certificate of initial capital deposit from bank
The one-stop shop includes the MOCI, Ministry of Civil Defense, Royal Oman Police, Muscat Municipality, Chamber
of Commerce, Ministry of Regional Municipalities, Environment and Water Resources and the Ministry of
Manpower. Registration is expedited through this method.
During registration with the MOCI, the fees differ depending on the grade of the company, ranging from Excellent
grade to Fourth grade in descending order of startup capital.
The company must also obtain the license from the Municipality of Muscat through submitting the following
documents at the one-stop shop:
 Company lease agreement
 Company statutes including memorandum and articles of incorporation
 Chamber of Commerce and Industry affiliation certificate
 Agency Certification if applicable
Time: 3 days
Cost:
 OMR 40 for 5 year business registration
 OMR 128 for Chamber of Commerce
 OMR 15 for registration with Muscat Municipality
3. Notification of the Tax Department of the Finance Ministry
The company must register at the Tax Department under the Income Tax Law. Registration involves submission of
a completed Declaration of Business Particulars form.
Time: 1 day
Cost: no charge
4. Registering employees for social insurance
For every worker employed, a copy of the employment contract must be submitted to the Public Authority for
Social Insurance for the employee’s social security registration purposes. The LLC must be obligated to the
employee’s retirement benefits contributions to the Public Authority in accordance to the Social Security Law of
Oman.
Time: 1 day
Cost: no charge
5. Make a company seal
The company seal or stamp must be issued by the registered authorized signatory of the LLC. The creation of the
seal must be accompanied by an attested signature specimen confirming the issuer’s authority to obtain the
stamp.
Time: 2 days
 Cost: OMR 50
6. Post registration procedures
The following must be obtained after the formal incorporation process, which may vary depending on the intended
business activities:
 Municipality license
 Tax registration
 Registration with the Royal Oman Police
 Registration with the Ministry of Manpower to apply for labor clearance and visas
 Import/export license if required
 Industrial, environmental and other permits

Register a branch of an International Company in Oman

Who can request this service

The companies that do business in Oman based upon contracts or agreements with the Government of
Oman.

Steps to follow to request the service

A. Process Steps:

1. The investor should submit his request to the Investors Services Department or any of its
branches in the regional directorates applying for registering the bureau.
2. An Application Form of registering an international foreign company/ organization, together with
the supporting documents, should be submitted
3. The computerized system sends an email or a text message to the applicant stating the
application number and time and date of submission
4. After checking the application and other supporting documents and ensuring its legal eligibility,
the registration process will be completed
5. Another email/ message will be sent to the applicant informing him the status of the application
(Approved, rejected, need more information, etc.)
6. In case of approval, the investor should pay the fees and get the certificate and papers required
by the commercial registration office

B. List all forms/applications that need to be completed to apply for the service:

 An Application Form for registering a branch of an international company/ organization

What documents are needed to process

 A certified copy of the Articles of association or memorandum of incorporation of the mother

company.
 The main office of the company should submit an authenticated and certified letter stating that it
bears all responsibilities of the commercial representative office in Oman.
  An authenticated certificate of registration of the company/ establishment in the original
country.
 An authorization from the main office to the branch manager(s) to operate and manage their
business in Oman.
 A copy of the agreement signed with the Omani government, or a letter issued by the
government entity illustrating the number of the contract and the dates of commence and
expiry.
 Copies of the ID cards of the authorized signatories should be presented.
 Specimen of signatures should be presented.

Special conditions if any applicable

 Registration of branches is only for the companies/ organizations that have contracts or
agreements with the Omani government, one of the public companies, a stock company having
government shares, or company registered by a Royal Decree
 The term of the company is that of the contract signed between the company and the
contractual party. It is renewed accordingly.

How the service is processed

 The application will be received and the applicant will be notified by email or a text message.
 The applicant will be informed by an email or a text message in case the application is (approved,
rejected, or need more information).

How long will it take

One - Two days.

FEATURES OF A BRANCH OFFICE IN OMAN

 Provision of 100% foreign ownership

 A branch office is required to have a local agent to sponsor Oman visas and licenses

 Minimum 12% tax is applicable on a foreign branch office

 All the documents of the parent company required to open a branch company must be notarized by the

Embassy of Oman

HOW TO INCORPORATE A BRANCH OFFICE IN OMAN?

The activities of a branch must be similar to the activities of its parent company and it is not permitted to carry out

any other activity unless approved first by the parent company and registered with the Ministry of Commerce and

Industry. The registration remains valid for the duration of the foreign company’s contract performance, subject to

the granting of extensions of time. Any such extensions must also be registered in the Commercial register of the

Ministry. The procedure to register your branch office in Oman is as follows:

1. Register your branch name with the Registrar of Oman

2. Draft a Memorandum of Association mentioning all the details of the shareholders

3. Submit all the necessary documents along with the Memorandum of Association

4. To get the valid license, the Ministry will ask you to submit the bank guarantee of US$39,000, after which you

shall be provided with an operational license

5. After getting the approval and issuance of license from the Ministry of Commerce and Industry, note that the

license is valid only for the duration of the project

6. Along with the license, you are required to obtain a permit from Municipality, Royal Police of Oman, Ministry of

Manpower, and Industrial/Environmental authority