Company Formation Services 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 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

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.

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 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.

Foreign companies and investors may open representative trade offices in Oman to carry out their company activities. However, such offices are not allowed to make profit-making activities. A local person is needed to represent the company in Oman. Such businesses are more suitable for customer relationships and business support and so on. It is mandatory to present a certificated copy of Article of Association and the letter of undertaking for setting up a representative trade office in Oman. Helpline Group can manage all these requirements and set up a representative trade office in Oman.

Commercial agencies are used for representing a main or parent company in Oman. A commercial agent is mandatory for such businesses. A foreign business may appoint a local agent for distributing goods or engaging with local customers. The local commercial agent can be an Omani citizen or an Omani company. It is a mandatory requirement for the commercial agent of a business to be registered with the Ministry of Commerce and Industry and must be a member of the Oman Chamber of Commerce and Industry. Helpline Group can help you set up a commercial agency in Oman for carrying out your business activities.

It is possible in Oman to have 100% owned branches for foreign companies, as long as there is a contract with a government entity or a government controlled entity in Oman. While this is one way of having 100% ownership in Oman, this is not the most suitable form if there are no such contracts with the government or government controlled entities, even though branch offices do not require local partners or sponsors, or any share capital. A branch office set up is only valid up to the registration period of the contract, and it is mandatory to gain prior permission fro the Ministry of Commerce and Industry to set up a branch office in Oman.