Foreign direct investment is permitted in numerous industries. In contrast to many Gulf countries, the government of Oman has liberalised foreign investment. In most industries, 100 percent foreign investment is permitted. This is advantageous for many types of investors. A corporation may be incorporated without appointing a nominated shareholder or an Oman resident.

Nevertheless, due to cultural differences, it is usually appropriate to name a local nominee shareholder. In Oman, there is no minimum share capital required for the formation of a corporation. An investor can utilise many types of business structures. In Oman, an LLC (Limited Liability Company) can be readily formed with a single shareholder and director.

There is no necessity for an Oman-based shareholder or director. Consequently, a foreign stakeholder has flexibility in conducting business. Foreign investors in Oman are eligible for a variety of benefits, including interest-free loans and various subsidies. In addition, there are tax exemptions for international corporations.

The following business structures are available for company registration in Oman :

General Partnership

There are two or more partners with unlimited liability in this entity type. No minimum amount of capital is necessary to form a general partnership.

Limited Partnership

There are two distinct types of limited partnerships:

• General Partners who are jointly and severally liable for partnership obligations. This would indicate that all partners are equally responsible.
• A partner whose liability is limited to the amount of his or her capital commitment. The liability of this partner is restricted to the amount of the capital commitment.

Limited Liability Company (LLC)

This type of business employs between two and fifty employees. This type of entity’s liability is limited to a certain amount. If this company requires any type of approval, then the regulatory body’s approval must be obtained. Minimum capital requirements for this sort of entity are as follows:

• OMR 20,000 (for Omani and GCC citizens)
• OMR 150,000 (for a mixed shareholding with foreign shareholders).

Joint Venture

A Joint Venture is an agreement between two or more parties to form a firm for a specific project or objective. In Oman, there is no minimum capital requirement for joint ventures. A candidate for company registration in Oman may utilise the above structure if it is for a limited time or a specific purpose.

Joint Stock Companies

These organisations are founded with minimal cash. It is permitted for Joint Stock Companies to offer shares to the general public. Minimum of three shareholders are required to form this entity type. Minimum capital requirements for a Joint Stock firm are as follows:

• Public Joint Venture Firm: 2 million OMR
• Closed Joint Venture Company
• Converted from another unit of measure: 1 million OMR

Holding Company

A holding company would have tremendous influence over its subsidiaries and sister companies. There would be greater than 51 percent ownership of the subsidiary corporations. A holding company may be either a corporation limited by shares or a limited liability company (LLC). The minimum required capital for a holding company is OMR 2 million.

Branch Office

A branch office is only an extension of the parent company’s foreign operations. These offices can engage in profit-generating activities.

Representative Office

A representative office is an extension of the foreign parent firm, similar to a branch office. The representative office is prohibited from engaging in profit-generating activities. The representative office is only permitted to engage in activities that promote the foreign parent firm and marketing.

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