Company Formation Services in Oman
Over the years, Oman has positioned itself as a global leader in various business activities and has provided a visible support as well as platform for various expats across the world. The process of company formation is conducted in a very smooth and cohesive manner and ensures that clients are able to embark on their entrepreneurial career without any legal issues.
Located in the coastline of the Arabian Peninsula, Oman is in a strategic position to exploit its trade and business advantages in the Middle East. Although the country traditionally established industry and economy based on oil and gas exploration and exploitation, recent changes in the oil and gas sector are forcing Oman to move towards other directions and industrial sectors. There is now immense opportunities surrounding other business industries in Oman. Many industries are in its infancy, which means, a business may exploit current economic and market conditions to grow in the country. Helpline Group has established its company formation services for Kuwait to support these requirements and goals.
Assurance on Reliability and Quality
Established in 1998, Helpline Group has achieved widespread presence across the world in the past ~25 years. With its head office located in Dubai, we serve our customers from across the world through out global offices and partner networks.
Company Formation Steps in Oman
Finding A Partner
The first requirement in company formation is ensuring local partner or sponsor from Oman, which is essential to acquire registration, licenses and commencing activities in Oman.
Business Set-Up
Oman has different requirements and rules concerning business set and formation in various industries. Helpline Group can help you choose the most appropriate form and type.
License Registration
Every company should have all the necessary licenses and registrations in Oman. Helpline Group is a specialist in offering such licensing and registration services in Oman.
Legal Structures of the Company
Oman has different company structures on offer. One must understand the basic difference between these structure models and types in Oman, and make the best decision based on the ownership needs, requirements and conditions. Helpline Group can guide you through this process and help you choose the most suitable company structure in Oman Company Formation. Company formation in Oman is guided as per the Foreign Business and Investment Law of 1974, and the Commercial Register law and the Commercial Companies Code of 1974.
- Limited Liability Company (LLC)
- Branch Office
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Partnership Company
- Holding Company
- Shareholding Company or Joint Stock Company
- Joint Venture
Limited Liability Company Formation in Oman (WLL)
A “Limited Liability Company” or WLL is the most basic form of business formation in Oman. This is usually useful for small businesses in the country, where fixed capital is divided into equal shares and registered under the Commercial Register with the Ministry of Commerce and Industry. The following conditions are followed in an LLC in Oman.
- Shareholders: Minimum 2 shareholders and a maximum of 40 shareholders
- Liability: Limited to the extent of investments
- Minimum Share Capital: Not specified
- Foreign Investment: Foreign investors are allowed – US or GCC citizen can have 100% ownership of LLCs in Oman
- Local Partners: Local partners are mandatory – minimum 30% ownership is mandatory
- Tax Requirements: Individual Tax; tax exemptions up to 100% is allowed for companies operating in the free zone.
- Suitable for: Limited Liability Company is suitable for small businesses in Oman
- Capital Requirements: Minimum OMR 20000 for wholly Oman, US, or GCC owned companies and OMR 150000 for foreign investment companies
General Partnership Company in Oman
In a general partnership, all conditions of the LLC are applicable. However, partners in a general partnership have unlimited liability towards the business, and it may extend up to partners’ personal wealth, making it a very risky business structure in Oman. While it is the easiest and must be registered under the Commercial Registrar, a general partnership company must have a written agreement of partnership that detail partner’s activities and responsibilities in the business. Apart from this:
- The company name must contain the name of one or more partners
- A general partnership may come to an end when a new partner is added, or an existing partner leaves the partnership
- General partnership company may reach a conclusion when the partnership period is over
Limited Share Partnership Company in Oman
Limited Share Partnership is another form of LLC in Oman. In addition to the LLC norms and conditions, LSPs have certain limitations and provisions.
- No limitations for the maximum number of partners
- Limited Share Partnership must be registered with the commercial registrar
- Minimum one general partner and a minimum one limited partner is required
- General partners have unlimited liability but have the responsibility of managing the business
- Limited partners have limited liability to the extent of their capital contribution and are prohibited from engaging in managerial activities and responsibilities
Holding Company Formation in Oman
A Holding company in Oman is formed to manage and own other business in Oman. A Holding company in Oman may own any type of company in Oman, including joint stock companies and limited liability companies. It is possible for such holding companies to have more than 50% ownership in companies. The company name must contain “Holding Company” at the end of the name. It is mandatory to have more than 2 Million OMR in capital for a holding company in Oman. Contact Helpline Group for more information on setting up a holding company in Oman.
Shareholding Company or Joint Stock Company in Oman
Also known as Joint Stock Company, a Shareholding Company in Oman is a system though which a fixed amount of capital is distributed through a number of shares for public subscription. A Joint Stock Company in Oman requires at least Five hundred thousand OMR (OMR 500000) towards capital investment for those not intending to offer public subscription of shares. However, when public subscription is involved, this capital requirement goes up to 2 million OMR. Shareholders have preemptive rights and there are different requirements companies must follow while setting up a joint stock company in Oman. The following requirements are mandatory:
- Minimum of 3 shareholders
- Minimum 3 and maximum 12 Board of directors
- Register under the Commercial Registrar
- Prior approval from the Ministry of Commerce and Industry in Oman
- Must follow and adhere to the Muscat Securities Market Law
Joint Venture Formation in Oman
Joint Ventures are formed between businesses in Oman, including foreign businesses and entrepreneurs. Although it is legally recognised in the form of a contract, this does not ensure legal recognition as an entity. The roles and responsibilities of a joint venture are as good as mentioned in the contract or agreement, or the Memorandum of Association. It’s beginning, end and activities are dependent on the Memorandum of Association or the agreement between involved parties, including their duties and obligations. Speak to Helpline Group for more information on setting up a Joint Venture in Oman.