Oman Company Formation

Oman company formation is an ideal, legitimate way for international entrepreneurs to conduct business in Oman and elsewhere in the Gulf Cooperation Council (GCC). The following information will help to determine whether Oman company formation is the ideal corporate strategy to fulfill your international business objectives:

Foreign investors are permitted to own up to 100% of an Omani company engaged in a project deemed by the National Development Council to be of strategic importance to the Omani economy. Examples of industries for which this applies include manufacturing, agriculture, fishery, tourism, export of locally-produced goods, public utility projects, and infrastructure projects. Healy Consultants assists international entrepreneurs obtain 100% foreign investment approval.

To encourage foreign investment, the Omani government also offers other incentives including: i) exemption from customs duty on the import of plant and equipment ii) exemption of customs duty on raw materials for the first 10 years of operation iii) corporate tax holidays of up to 5 years following company formation and iv) no restrictions on the repatriation of capital, net profit and royalties.

Company employees pay no personal income tax.

Applications for corporate tax exemptions are lodged with the Ministry of Commerce and Industry in Muscat. Five-year exemptions are often granted to companies involved in the national strategic development projects outlined in 1. above. Healy Consultants will assist clients obtain legal tax exemption where possible.

It is easy to open global corporate bank accounts to support Oman company formation. Healy Consultants works with internationally-recognised banks with branches in Oman, including HSBC Oman and Standard Chartered Bank Oman.

Oman's economy is ranked the world's 43rd-freest in the Heritage Organisation’s 2010 Index of Economic Freedom, a measure of freedom enjoyed in  business, trade, monetary, financial, investment and labour markets. Consequently, Oman is not an efficient jurisdiction from which to run an international trading business.

While Oman is not perceived to be an international tax haven, it is ranked as only the world's 39th-least corrupt country in the 2009 Corruption Perceptions Index by Transparency International, a measure of corruption amongst public officials and politicians.

If an Omani company is not 100% foreign-owned, at least one of the two shareholders must be an Omani citizen. For a company with mixed Omani/foreign shareholding, the minimum capital requirement is 150,000 Omani riyals. If the company is 100% Omani-owned, the minimum capital is just 10,000 Omani riyals.

In accordance with Oman company law, every Omani company requires a minimum of 2 shareholders. While 100% foreign shareholding of an Omani company is possible (see point 1 under Advantages), that company must have a minimum capital investment of 500,000 Omani Riyals (US$1.3 million).

Under Omani company and labour law, permits must be obtained for non-Omani employees. Conditions for permit include: i) there must not be enough Omani employees for the required job, ii) he employer must observe the specified percentage for Omanisation, iii) payment of required fees. `

After Oman company formation, corporate tax is payable based on assessed income. The tax system is on a sliding scale with the corporate tax rate ranging from 0% for income of 0 to 5,000 RO (US$12,984) up to 30% for income over 100,000 RO (US$260,000).

A foreign entrepreneur looking to engage in commercial or industrial business activities in Oman is also required to obtain a business license from the Ministry of Commerce and Industry. Healy Consultants can assist with this important phase of Oman company formation.