11 steps to incorporating in Oman in 2021
- Engagement with Client: Prior to the start of incorporation procedures in Oman, our Client i) settles Healy Consultants’ fees ii) signs and returns our Client engagement letter and iii) provides us with all of the required due diligence documents;
- Consultation: Healy Consultants assists our Clients to determine i) what type of Oman business entity is required ii) what class of business license is required iii) whether free zone incorporation can be achieved and iv) employment visa strategies;
- Planning: Healy Consultants drafts a detailed incorporation engagement project plan, mapping out by week each step to engagement completion, optimising transparency and setting Client expectations;
- Signing an office lease agreement: Our Client supplies Healy Consultants with a lease agreement for their office premises, as physical space is required. In addition, this space must be zoned for commercial use in order to be eligible. If this is not possible, Healy Consultants will supply virtual office services for six months until our Client finds their preferred business address.
- Document preparation: The exact Oman corporate structure is agreed with our Client. Thereafter, Healy Consultants i) reserves company name ii) applies for a business license with the Ministry of Commerce and Industry (MOCI) and iii) prepares the company’s constitutive contract in English and Arabic, then has it legalised by the Ministry of Foreign Affairs and submitted to the MOCI;
- Capital account opening (required only if the MOCI imposes the legal entity paid-up share capital): Healy Consultants assists our Client with opening a corporate bank account with an Omani bank. Our Client deposits the paid-up share capital and supplies Healy Consultants with a certificate of deposit and bank statement;
- Incorporation: Healy Consultants submits i) translated and legalised opening forms ii) municipality approval and iii) share capital certificate to the MOCI. The Form of Declaration of Business Particulars is filled with the Tax Department of the Finance Ministry.
- Application for visas: Healy Consultants applies for all the necessary work visas from the Directorate General of Passport and Residence (DGPR). DGPR then provides a login ID and password to register individuals for employment with the company. Before visa issuance, our Client must travel to Oman to get fingerprint and biometrics recorded in the government system;
- Registration of employees: Companies with Omani employees are registered with the Public Authority for Social Insurance and a company seal is made. Healy Consultants will assist our Clients with applications to hire both Omani and non-Omani workers. Note that the proportion of Omani workers required by law (known as Omanisation) will vary by industry;
- Bank account conversion: Healy Consultants will assist our Client to convert the capital account into a business current account and apply for online banking services;
- Engagement completion: Following engagement completion, Healy Consultants couriers a full company kit to our Client, including the original Oman corporate documents, unopened bank correspondence and a Client feedback survey.
Frequently asked questions
What are the minimum capital requirements when incorporating a company in Oman?When incorporating in Oman, US$390,000 (OMR150,000) will be required for starting an LLC. For a free zone company or one owned by US or GCC nationals, the capital requirement is only US$52,000 (OMR20,000).
Can I fully own my company if I incorporate in Oman?Generally, foreign ownership is allowed up to a maximum of 65%. However, an Omani company can be fully-foreign owned if i) it is considered beneficial for the Omani economy and has a paid up capital of at least US$1.3 million and ii) at least one shareholder is either a USA or GCC citizen. However, since two shareholders are required for all Omani companies 100% ownership by one entity isn’t possible (the same group can own 100% of an Omani company by using two entities, however).