Business Setup in Oman

• 100% foreign ownership across most sectors
• Mainland company or free zone, chosen for your activity
• Formation, licensing, banking and residency coordinated
• Property-holding companies and operating businesses both covered

Setting up a business in Oman: the overview

Oman opened its economy to full foreign ownership under the Foreign Capital Investment Law, and the registration process has since moved online through the Invest Easy portal. A foreign investor can now form a wholly owned Omani company, obtain its commercial registration and licences, open its bank account and, under the 2026 residency rules, obtain sponsor-free residency as its legal representative, in a matter of weeks for straightforward activities. The free zones at Duqm, Sohar, Salalah and Khazaen add customs and tax advantages for trading and industrial businesses.

We coordinate the process with licensed corporate service providers and lawyers for two kinds of client: entrepreneurs and exporters who want to operate from Oman, often alongside a home purchase, and investors who want a company to hold property or to qualify for the Investor Residency tiers through business investment.

Mainland company or free zone

The formation process

1. Activity and structureBusiness activity codes, mainland or zone, shareholders and manager; whether the company will also hold property.
2. Name and registrationCommercial registration through Invest Easy; chamber of commerce membership; articles of association.
3. Licences and approvalsMunicipality licence and any sector approvals; zone licence where applicable.
4. Office and addressA licensed address: an office, a serviced desk or zone premises.
5. Bank accountCorporate account opened with the company documents; see bank account support.
6. Residency and staffResidency for the legal representative under the 2026 rules; work permits and visas for staff within the sector’s quotas.

Property-holding companies

Some buyers hold Omani property through a company for succession, co-ownership or home-country tax reasons. The company is recognised at registration, the property sits in designated freehold zones in the normal way, and ROP Decision 87/2026 extends sponsor-free residency to the company’s legal representative. Whether a company is better than personal ownership is a tax question for your adviser and depends on where you are resident; see tax and compliance guidance and legal and transaction support.

Residency through business

Two routes attach to a business. The legal representative of a licensed investor company or a property-owning company obtains sponsor-free residency under the 2026 rules. And the Investor Residency Programme grants five-year permits from OMR 250,000 and ten-year permits from OMR 500,000 of qualifying investment, including business capital, with a further ten-year route for businesses employing Omanis at scale. See the Investor Residency Programme.

Tax, VAT and compliance for companies

Omani companies pay corporate income tax at the standard rate on profits, with a reduced rate for qualifying small businesses and holidays in the free zones; value added tax at 5% applies above the registration threshold; withholding tax applies to certain payments abroad; and annual audited accounts and tax filings are required. Dividends to foreign shareholders are not taxed in Oman under current law. Your accountant handles the filings; we make the introductions. See tax and compliance guidance.

Sectors foreign investors favour

Costs and timing

Government registration and licence fees are modest; corporate service and legal fees are fixed and quoted in advance; a licensed address is the main recurring cost for small companies. Straightforward mainland companies register within weeks; regulated activities and zone companies take longer. We set out the full budget and timeline before you start.

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Frequently asked questions

Page reviewed 2 November 2026. Availability, prices, payment terms and residency rules are confirmed in writing before you commit and may change.