| 70% LLC | 100% LLC | Free Zone COmpany | JSC | LP | Commercial Agency | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|---|---|
| Company Setup Time | 20 days | 20 days | 15 days | 20 days | 20 days | 20 days | 20 days | 20 days |
| Bank Account Opening | 10 days | 10 days | 15 days | 15 days | 15 days | 15 days | 15 days | 15 days |
| Government Grants Available | Yes | Yes | Yes | Yes | Yes | No | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | Yes | No | No | No |
| Legal Liability | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Limited Liability Companies (LLC)
- This entity must have two shareholders and one director, in Oman. The minimum requirement for share capital is OR150,000 (i.e. approx. US$ 390,000). A legal local registered address is also required. Also, two shareholders are needed, at least one must be a resident of Oman or a national of the GCC State or a USA citizen. And must have more than 30 percent.
- US citizens are also treated as Oman residents and are therefore permitted by law to have a business entity without the requirement of a resident partner. In this case, all shareholders must be Americans. The minimum share capital amount has to be OMR20,000 (i.e. approx. US$ 52,000) and it is not mandatory for this amount to be paid.
Fully foreign-owned limited liability companies (100% LLC)
- According to Oman’s laws, foreign residents can set up a fully owned limited liability company after obtaining permission from local authorities. They should present a detailed business plan, it should include information such as the amount of capital investment and the benefits of this business to the local economy. The total job creation must be mentioned.
- Some other requirements to incorporate this type of company are to have at least two shareholders and two directors. The minimum amount of capital required to be invested is 1 million (i.e. approximately US$ 2.6 million).
Free zone companies in Oman
- The entities that are incorporated in Oman’s free zones can be wholly owned by foreigners. Can also carry out business activities with clients in Oman. These types of business entities do not need a minimum share capital investment.
- They are exempt to pay corporate income tax and customs duties. It is required to have at least 10 percent of Oman national employees.
Joint stock companies (aka SAO)
- Joint stock companies which publicly trade their shares are locally named SAOG. They require a minimum share capital of 150,000 (i.e. approximately US$ 390,000). Also, there must be a shareholder in Oman holding 30% of the shares.
- Joint stock companies that do not offer shares to the public are known as private joint stock companies (SAOC). The minimum capital requirement for these business entities is 50,000 (i.e. approximately US$ 130,000). Also, at least three shareholders must be appointed. One of these shareholders must be a Oman’s resident, who must hold more than 30 percent of the total shares of the company.
- Any type of joint stock company with foreign shareholding must have a minimum share capital of 150,000 (Approx. 390,000). Approval must also be obtained from local authorities.
Limited Partnerships (LP)
- This entity requires one general partner and one limited partner.
- The general partner is responsible for the partnership’s debts according to the investment’s full capacity. However, the limited partner is responsible for the debts up to the amount of the contribution he has made in the capital. The general partner of this business entity must be an Oman resident.