100% foreign ownership of companies in Oman in 2025
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Summary
- In January 2020 a new Foreign Investment Law (FIL) came into effect in Oman allowing foreigners to setup and wholly own Omani LLCs for widespread commercial activities in the country;
- Previously, 100% foreign ownership was exclusively reserved for i) nationals of other GCC states ii) US citizens or US-owned companies under the 2009 Oman-USA Free Trade Agreement iii) foreign companies setting up a businesses with a minimum investment of OMR500,000 ( approximately US$1.3 million) or iv) foreign entrepreneurs restricted to trade from within an Omani Free Zone;
- The new FIL eases the regulatory requirements for foreign investments in Oman by:
- Removing the mandatory requirement for a 30% Omani, GCC or US national partner;
- Allowing LLCs to be registered by a single shareholder (one-person company LLC);
- No longer requiring a minimum paid up share capital for LLCs. This was previously OMR150,000 (US$390,000);
- Substantially reducing business activities closed to foreign investment.
- Pending a ministerial decision on a clear legal regulatory framework, we expect the Oman Ministry of Commerce and Industry (MOCI) to approve foreign shareholdings in new LLCs on a case-by-case basis;
- Healy Consultants Group will assist our Clients secure pre-approval from MOCI to ascertain 100% ownership of their intended business activity in the country.
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Oman negative investment list
The following activities are closed to foreign investment in Oman:- Services of photocopying and typing of documents
- Translation and interpretation activities
- Transactions clearance
- Tailoring of Arabic menswear (menswear tailoring shops)
- Tailoring of non-Arab menswear
- Tailoring of Arabic and non-Arab women’s clothes
- Tailoring of sportswear
- Tailoring of military uniforms
- Manufacture of Omani kimmah
- Manufacture of women’s Abaia (gown)
- Electrical repairs of motor vehicle and recharging of batteries
- Repair and clean of vehicle radiators
- Wheel balance
- Service stations of washing and lubrication of motor vehicle
- Change oils of motor vehicle
- Repair of motor vehicle air conditioner
- Repair of exhaust sound for motor vehicle
- Washing and polishing of motor vehicle
- Tyre and tube repair
- Transport and sale of drinking water
- Labour recruitment offices
- Employment placement offices
- Driving training
- Laundering of all kinds of clothing (including fur) and textiles
- Ironing of clothing
- Laundry steam (dry wash)
- Hair trimming and cutting, hairdressing, shaving and beard trimming for men
- Hairdressing and other beauty treatment for women
- Hair trimming and cutting, hairdressing for children
- Taxi operation
- Marine fishing
- Freshwater fish fishing
- Education for handicapped
- Homes for the elderly
- Orphanages
- Rehabilitation centres
- Specialized rehabilitation centres
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Healy Consultants Group fees
The average Healy Consultants Group fees to set up a One-Person LLC Company under the new FIL amount to US$38,119. These fees include i) LLC company formation with a sole shareholder ii) assistance to locate a physical office premises or engage a local P O Box service iii) registration with the Tax Authority and iv) multi-currency bank account opening (without travel) with a top tier bank.
