How do I start a business in Oman?

To start a business in Oman, follow 7 steps: Reserve trade name, Submit Articles of Association, Obtain Commercial Registration (CR), Register for tax with the Tax Authority, Register with Royal Oman Police for visas, Register with PASI, Apply for sector licences. The process takes approximately 217 days and costs around $3780 USD.

What types of business entities can I register in Oman?

Oman offers 4 entity types: Limited Liability Company (min capital: $0, foreign ownership: 100%); Sole Proprietor Company (SPC) (min capital: $0, foreign ownership: 100%); Branch of Foreign Company (min capital: $0, foreign ownership: 100%); Free Zone Company (min capital: $0, foreign ownership: 100%).

Can foreigners own a business in Oman?

Yes, foreigners can own businesses in Oman. Limited Liability Company allows up to 100% foreign ownership. Sole Proprietor Company (SPC) allows up to 100% foreign ownership. Branch of Foreign Company allows up to 100% foreign ownership. Free Zone Company allows up to 100% foreign ownership.

What visa do I need to start a business in Oman?

The primary business visa for Oman is the Oman Business Visa (e-visa). Single or multiple-entry e-visa for business meetings, valid for 30 days; available online for citizens of around 100 countries For investors: Investor Residence Visa. 5-year or 10-year residence visa for foreign investors meeting capital thresholds (OMR 250,000 to OMR 500,000); includes family sponsorship and is renewable Processing takes approximately 4 weeks and costs ~$600.

What is the minimum wage in Oman?

The minimum wage in Oman is $845/month (USD). Average monthly wage is approximately $1750. Standard work week is 45 hours with 30 paid leave days per year.

How much does it cost to run a business in Oman?

Estimated monthly overhead for a small business (5-10 employees) in Oman is approximately $11000. Office rent averages $14/sqm/month. Skilled workers average $2200/month. Typical break-even: Tech 18 months, Services 10 months, Retail 14 months.

Countries OmanBusiness Guide

🇴🇲

Start a Business in Oman

Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis

~217 days

Setup Time

~$3,780

Setup Cost

15%

Corporate Tax

100%

Foreign Ownership

#68

Ease of Business

Entity Types

Entity	Min Capital	Foreign %	Liability	Min Shareholders	Best For
Limited Liability Company Sharikat al-Mas'uliyyah al-Mahdoodah (LLC)	None	100%	Limited	1	Most common entity since 2020 reforms - 100% foreign ownership allowed in nearly all sectors, no minimum capital for most activities
Sole Proprietor Company (SPC)	None	100%	Limited	1	Single-shareholder structure - simplified governance for solo founders or wholly owned subsidiaries
Branch of Foreign Company	None	100%	Unlimited	0	Foreign companies executing government contracts or projects without forming a separate Omani entity
Free Zone Company	None	100%	Limited	1	100% foreign-owned companies in Salalah, Sohar, Duqm, or Mazyona Free Zones with tax holidays and customs exemptions

Registration Steps

Reserve trade name

Apply for a trade name reservation at the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) via the Invest Easy portal

1-3 days

~$80

MOCIIP - Invest Easy

Submit Articles of Association

Draft and submit articles to the Commercial Register; for activities with foreign ownership over 70% and certain regulated sectors, additional approvals apply

3-7 days

~$350

MOCIIP - Commercial Register

Obtain Commercial Registration (CR)

MOCIIP issues the Commercial Registration certificate and joint Oman Chamber of Commerce membership

2-5 days

~$250

MOCIIP and Oman Chamber of Commerce

All companies must register with the Oman Tax Authority for corporate income tax and, if turnover exceeds OMR 38,500, for VAT

2-7 days

Free

Oman Tax Authority

Obtain employer file at ROP for issuing investor and employee residence visas

3-10 days

~$100

Royal Oman Police - Directorate General of Passports and Residence

1-5 days

Free

Public Authority for Social Insurance (PASI)

Apply for sector licences

Banking, insurance, telecoms, healthcare, education, and tourism require approval from sector regulators (CMA, CBO, TRA, MOH)

30-180 days

~$3,000

Sector regulators

Total Estimated

217 days max$3,780

Tax Framework

Corporate Income Tax15%

Flat 15% on annual taxable income exceeding OMR 30,000 for most companies. Oil and gas companies are taxed at 55%. SMEs with revenue below OMR 100,000 enjoy a 3% reduced rate. No personal income tax (PIT introduction announced for 2028 on high earners only).

VAT5%

Personal Income Tax0-0%

Capital Gains Tax0%

Dividend Withholding0%

Tax Treaties35 countries

Tax Incentive Zones

Free Zones in Salalah, Sohar, Duqm, and Mazyona offer 30-year corporate tax holidays, 100% foreign ownership, 0% customs, and unrestricted profit repatriation. Qualifying Industrial Estates managed by Madayn provide rebates and reduced land lease rates. Vision 2040 incentives for renewable energy, logistics, mining, fisheries, and tourism.

Labor Laws & Costs

$845/mo

Minimum Wage

$1750/mo

Average Wage

45 hrs/week

Work Hours

30 days/year

Paid Leave

4 weeks/year

Severance

11.5% of salary

Employer Social Security

7% of salary

Employee Social Security

Required

Foreign Worker Permit

Foreign Worker Quota: Omanisation quotas apply by sector (e.g., 35% in industry, 90% in banking). Employers must hire a percentage of Omani nationals or pay a labour market fee. Foreign worker quotas are managed by the Ministry of Labour.

Visa & Immigration

Oman Business Visa (e-visa)

Single or multiple-entry e-visa for business meetings, valid for 30 days; available online for citizens of around 100 countries

4 weeks

Processing time

$600

Estimated cost

Investor Residence Visa

Investor

5-year or 10-year residence visa for foreign investors meeting capital thresholds (OMR 250,000 to OMR 500,000); includes family sponsorship and is renewable

Work Permit Process: Employer applies for a Labour Clearance from the Ministry of Labour subject to Omanisation quotas; followed by a Royal Oman Police employment visa and residence card

Business Environment

#68/190

Ease of Business Rank

6 days

Starting a Business

12 days

Registering Property

600 days

Enforcing Contracts

43/100

Corruption Perception

95%

Internet Penetration

OMR

Currency

UTC+4

Time Zone

GoodCould be betterHover a dot for the threshold and source. Sources: World Bank, Transparency International, ITU.

Arabic

Investment Zones & Provinces

Salalah Free Zone

Free Zone

Salalah (south Oman)

Incentives

30-year corporate tax holiday100% foreign ownership and profit repatriation0% customs dutiesAdjacent to Salalah Port (one of the largest container hubs on the Arabian Sea)

Key Sectors

LogisticsPetrochemicalsLight ManufacturingFood Processing

30-year tax holiday plus port-side location reduces total cost of operations by 35-50% versus mainland Oman

Sohar Port and Free Zone

Free Zone

Sohar (north Oman)

Incentives

25-year corporate tax holiday extendable100% foreign ownershipStrategic location outside the Strait of HormuzIntegrated industrial cluster (steel, aluminium, food)

Key Sectors

Steel and MetalsPetrochemicalsLogisticsFood Industries

Tax-free regime plus integrated supply chain reduces logistics costs by 25-40% for industrial operators

Duqm Special Economic Zone (SEZAD)

SEZ

Duqm (central Oman)

Incentives

30-year corporate tax holiday extendable up to 30 more years100% foreign ownershipMega-port and dry dock infrastructureAnchor for Vision 2040 industrial development

Key Sectors

Refining and PetrochemicalsMaritimeTourismRenewable EnergyMining

60-year potential tax holiday plus government anchor projects make Duqm one of the most cost-competitive SEZs in the GCC

Break-Even Analysis

Retail (months)

F&B (months)

Tech (months)

Manufacturing (months)

Services (months)

Typical Operating Costs in Oman

Per-person or per-unit costs. Multiply by your team size for total estimates.

Office Rent	$14	per sqm/month
Skilled Worker Salary	$2,200	per 1 worker/month
Unskilled Worker Salary	$700	per 1 worker/month
Electricity	$0.06	per kWh
Business Internet	$60	per 1 connection/month
Est. Monthly Overhead (5-10 staff)	$11,000	total/month

Sources: World Bank Open Data, ILO, Numbeo Cost of Living Index, local government publications. Salaries reflect market averages and may vary by city, industry, and experience level. Last updated 2025.

Break-Even Calculator

Total Investment (USD)

Monthly Revenue (USD)

Monthly Costs (USD)

Tax rate applied: 15% (corporate rate)

months to break even

$3,400

monthly net profit

81.6%

annual ROI

$215,000

total cost to break even

Break-even progressModerate recovery

Next Steps

Your Action Checklist

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Key Considerations for Foreign Investors

100% foreign ownership has been allowed in nearly all sectors since the 2020 Foreign Capital Investment Law - no local sponsor required for most activities

0% personal income tax remains a defining advantage for relocating senior staff and founders, although a 5-9% PIT on high earners is announced for 2028

Free Zones in Duqm, Salalah, and Sohar offer 25-30 year corporate tax holidays, the longest in the GCC, paired with full profit repatriation

Strategic location outside the Strait of Hormuz at Duqm and Salalah reduces shipping risk for energy and logistics operators

Omanisation quotas can be commercially significant; sector compliance and labour market fees should be modelled into the cost base from day one

Banking sector is sound but more conservative than UAE; expect 2-4 weeks for non-resident corporate account onboarding

VAT introduced at 5% in 2021 and corporate tax at 15%; further fiscal reforms tied to Vision 2040 economic diversification are likely

Last updated: 2025-Q4

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Start a Business in Oman

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors

Start a Business in Oman

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors