A foreign investor can set up a company in Oman and, in most activities, own 100% of it. The Foreign Capital Investment Law (Royal Decree 50/2019) allows foreign investment through a company or establishment that is either wholly or partly foreign-owned, and it sets no minimum capital. It does not apply to activities on the Ministry's prohibited list. In practice, you choose a legal form under the Commercial Companies Law (Royal Decree 18/2019), obtain a commercial registration on the Oman Business Platform, and then obtain an investment licence and any sector licences before you start trading.
Below are the steps, documents and common mistakes. For hands-on help, see our company establishment services in Oman.
The legal framework: two laws every foreign investor should know
The Foreign Capital Investment Law (Royal Decree 50/2019)
The Foreign Capital Investment Law replaced the 1994 law and came into force six months after its publication. Its key provisions for a new investor are:
- Article 3: a foreigner, whether an individual or a company, may carry on investment activity in Oman only in accordance with this law.
- Article 6: foreign investment must be made through an establishment or company in a permitted activity, with the foreign capital owning the business fully or in part, under a licence issued by the Ministry's Investment Services Centre.
- Article 14: the Minister issues a list of activities in which foreign investment is prohibited.
- Article 18: a foreign investment project enjoys the same advantages, incentives and guarantees as a national project.
- Article 26: the investor may transfer investment returns, sale or liquidation proceeds and other project payments into and out of Oman, subject to Omani law.
- Article 17: Omani courts hear disputes involving the project, such cases are treated as urgent, and the parties may choose arbitration.
Article 2 states that the law does not affect the separate rules on GCC investment, the Duqm Special Economic Zone, industrial estates and free zones, which have their own regimes.
The Commercial Companies Law (Royal Decree 18/2019)
The Commercial Companies Law of Oman governs how the company itself is formed and run. Article 4 lists seven permitted forms: general partnership, limited partnership, joint venture, joint stock company (public or closed), holding company, limited liability company and one person company.
Which company form suits a foreign investor?
- Limited liability company (LLC): the most common vehicle. Under Article 234 it has between 2 and 50 partners, whose liability is limited to their share of the capital. Article 238 leaves the capital to be fixed in the founding documents, and Article 241 requires cash contributions to be paid into a bank account opened for the company under formation.
- One person company: an LLC wholly owned by one individual or one company (Article 291). An individual may not set up more than one, which makes it popular with foreign parent companies and sole investors.
- Closed joint stock company (SAOC): at least 3 shareholders (Article 89) and a minimum issued capital of OMR 500,000; a public joint stock company (SAOG) needs at least OMR 2,000,000 (Article 91). These forms suit larger projects.
- Representative office: according to the government portal, a foreign trading, industrial or services company that has existed for at least 3 years may open a representative office, registered as a one person company. It is intended for representation rather than full trading.
First, check the prohibited activities list
Under Article 14, the Ministry of Commerce, Industry and Investment Promotion issued Ministerial Decision 209/2020 listing the activities closed to foreign investment. The list has since been extended, for example by Ministerial Decision 435/2024. It mainly protects traditional crafts and small businesses (such as making Omani halwa and tailoring traditional Arab garments) and also covers activities such as the sale of used vehicles. Always check the current list against your exact activity code before you invest. Note too that, according to the Oman Business Platform, listing an activity on your commercial registration does not by itself give you the right to carry it on if another law requires an additional licence.
Step-by-step: setting up your company
- Define the activity. Activities are selected from the national classification (ISIC4). Confirm that each activity is open to foreign investors and note any sector regulator whose approval you will need.
- Choose the structure and draft the founding documents. Article 9 requires the founding documents and every amendment to be in Arabic, or they are void. An LLC contract must state, among other things, the capital, the partners and their shares, the objects, the manager's powers and how disputes between partners are resolved (Article 240).
- Prepare and authenticate your documents. Individuals need passport copies. A corporate shareholder usually needs its certificate of incorporation, constitutional documents, a board resolution approving the investment and a power of attorney for the person signing in Oman. Oman is a party to the Hague Apostille Convention, so documents from other member states can generally be apostilled; documents from other countries are legalised through the usual consular route. Allow time for certified Arabic translations.
- Register the company on the Oman Business Platform. Check the name with the "Commercial Name Availability" service and file the application at business.gov.om. Self-service filing requires a PKI-enabled ID card, so investors without Omani ID usually file through a Sanad service centre or a law office. The platform issues the commercial registration on completion, but its supervisors may later verify the data, request corrections and suspend a registration that breaks the rules.
- Pay in the capital. Open the company's account at a bank licensed in Oman and deposit cash contributions, as Article 241 requires. The platform has a service for submitting proof of capital payment.
- Obtain the investment licence. The government portal states that every company subject to the Foreign Capital Investment Law must apply for this licence after obtaining its commercial registration. The listed documents include a passport copy, a feasibility study, evidence of experience, a bank statement and a lease contract, and the licence is valid for two years. Under Article 7 of the law you must then follow the approved implementation timetable.
- Secure premises and activity licences. Register a lease for the place of business and obtain municipal and sector licences through the platform's licensing services.
- Complete post-registration steps. Register for tax, register with the Ministry of Labour before recruiting, and apply separately for investor residence: the platform states that a commercial registration is not linked to the investor residence permit.
Free zones and special economic zones
If your project is export-led, industrial or logistics-based, consider the zones run by the Public Authority for Special Economic Zones and Free Zones (OPAZ), established by Royal Decree 105/2020. It oversees the Duqm Special Economic Zone, the Sohar, Salalah and Al Mazunah free zones, Khazaen Economic City, the industrial estates (Madayn) and the Muscat Airport Free Zone. Each zone has its own licensing and incentives under the Free Zones Law and the relevant decrees, so compare them with a mainland company before deciding.
Common pitfalls for foreign investors
- Using an Omani "nominee" to hold a business that the foreigner really controls. This exposes both parties to serious legal risk and leaves the investor with no protection.
- Choosing activity codes carelessly, then finding that one of them is prohibited or needs a licence you cannot obtain.
- Signing founding documents or shareholder agreements only in English, when the law requires Arabic founding documents.
- Assuming that a commercial registration gives you a right of residence.
- Missing the annual report. The platform states that it is due within 6 months after the end of the financial year, and that unmet obligations can be published in a public register.
Why a local lawyer helps
The platform makes registration fast, but cannot choose the right structure for you, draft an Arabic partners' agreement that protects a minority investor, or tell you whether your activity needs a regulator's approval. A lawyer in Oman can check your activities against the current list, prepare and review Arabic founding documents, file on your behalf through the platform, and advise on residence, labour and contracts once you are trading. Our corporate and investor services in Muscat cover the whole life of the company, from formation to disputes.
Frequently asked questions
Can a foreigner own 100% of a company in Oman?
Yes, in most activities. Article 6 of the Foreign Capital Investment Law allows the foreign investor to own the capital fully or in part. Activities on the ministerial prohibited list remain reserved for Omanis.
Is there a minimum capital requirement?
The Foreign Capital Investment Law sets none. For an LLC, the Commercial Companies Law leaves the capital to the founding documents, while joint stock companies have statutory minimums (OMR 500,000 for a closed company). Confirm current Ministry practice for your activity before you file.
Can I register a company in Oman from abroad?
Yes. You can file through a Sanad service centre or a law office holding a power of attorney, but your documents must be authenticated and translated beforehand.
Does registering a company give me a residence visa?
No. Investor residence is a separate application with its own conditions.
Talk to a company lawyer in Muscat
Dr. Abdullah Al Rashdi Office, Advocates and Legal Consultants, in Al Khuwair, Muscat, has more than 20 years of experience advising companies and investors. To discuss your project, message us on WhatsApp or call +968 92000841.
This article is general information about Omani law and is not legal advice for a specific case. Rules and procedures can change, so please consult the office about your own situation before acting.