Oman

Starting a Business in

Oman

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Oman. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2013.

Compare Oman to 188 other economies.

  • Standardized Company

  • Legal Form: Limited Liability Company (LLC)
  • Paid in Minimum Capital Requirement: OMR 20,000
  • City: Muscat
No. Procedure Time to Complete Associated Costs
1 Deposit the legally required initial capital in a bank

The capital of a limited liability company (LLC) must be fully paid up at the time of its registration.
1 day no charge
2 Register at the Commercial Registry of the Ministry of Commerce and Industry (MOCI)

The entrepreneur can check the availability of the desired company name online. To register, the entrepreneur submits a duly completed application form along with the following documents at the One Stop Shop of the Ministry of Commerce and Industry (MOCI):
- Passport (copy) and identity cards of shareholders
- Passport (copy) or identify cards of all intended authorized signatories
- Approved authorized signatory form, on which the names and sample signatures of each authorized signatory must be reproduced
- Standard company registration forms, including the constitutive contract (the articles of association)
- Applications for any specific licenses, depending on the nature of the proposed activities
- Certificate of initial capital deposit from the bank
Upon submission of the required documents, the applicant receives a list of fees to be paid according to the specified capital of the company along with the application tracking number, and indicates his/her preference for the notification on the status of the application: by phone, SMS, or email.
The following relevant public institutions are housed at the one-stop shop: Ministry of Commerce & Industry, Ministry of Civil Defense, Royal Oman Police, Muscat Municipality, Chamber of Commerce, Ministry of Regional Municipalities, Environment and Water Resources & the Ministry of Manpower. The one stop shop thus facilitates the registration of the company with the Oman Chamber of Commerce and Industry.
To register with the Oman Chamber of Commerce and Industry, the applicant submits a completed application form, along with the company statutes and pays the relevant fees depending on the grade of the company. The payable fees are as follows:
- For a company of Excellent grade, i.e. startup capital of OMR 250,000 or more, the registration fees are OMR 585 and the annual renewal fees are OMR 279.
- For a company of First grade, i.e. startup capital between OMR 100,000 and 249,000, the registration fees are OMR 225 and the annual renewal fees are OMR 108.
- For a company of Second grade, i.e. startup capital between OMR 50,000 to 99,000, the registration fees are OMR 128 and the annual renewal fees are OMR 73.
- For a company of Third grade, i.e. startup capital between OMR 25,000 to 49,000, the registration fees are OMR 78 and the annual renewal fees are OMR 45.
- For a company of Fourth grade, i.e. startup capital between OMR 3,000 to 24,000, the registration fees are OMR 33 and the annual renewal fees are OMR 25.
The company must then obtain the license from the Municipality of Muscat before commencing business operations and pay the fees of OMR 15. To do so, the applicant must submit a completed application form, along with the following documents:
- Company lease agreement
- Company statutes (memorandum and articles of incorporation)
- Chamber of Commerce and Industry affiliation certificate
- Agency Certification (if applicable)

3 days OMR 40 for business registration (for a duration of 5 years) + OMR 128 for Chamber of Commerce + OMR 15 for registration with Muscat Municipality
3 Notification of the Tax Department of the Finance Ministry

Since January 2010, the company must register at the Tax Department according to the New Income Tax Law. Registration includes submitting a completed Declaration of Business Particulars form. Additionally, the law eliminated the disparity in tax rates between foreign and local entities by providing a uniform tax rate of 12% for all taxable entities with an initial tax exemption of OMR 30,000.
1 day no charge
4 Register employees for social insurance

Once an employee is recruited, a copy of the contract must be submitted to the Public Authority for Social Insurance for the employee's social security registration purposes. The Social Security Law of Oman requires the LLC to abide by the specified employee retirement benefits contributions to the Authority.
1 day no charge
* 5 Make a company seal

The instructions to make the company seal or stamp are issued by the registered authorized signatory of the LLC. When issued to the supplier of the stamp or seal, such instructions should be accompanied by an attested signature specimen confirming the requesting persons’ authority to obtain the stamp or seal.
2 days (simultaneous with previous procedure) OMR 50
* Takes place simultaneously with another procedure.

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