Company Formation

Foreign Ownership Company in Oman

As a part of Vision 2040, back in 2019, the government announced the Foreign Capital Investment Law (FCIL), in which the government started to allow foreign individuals to own up to a maximum of 70% of the shares held by their company, and the rest 30% should be held by a local citizen. Since it began to transform Oman's market in a positive way, and to and diversity Oman's market, the government now allows a Foreign Individual or a company to hold even 100% share hold. Foreign ownership of companies in Oman is regulated by the Foreign Capital Investment Law, which allows for up to 100% foreign ownership in certain sectors, subject to certain conditions and restrictions. The new Foreign Investment Law of January 2020, now allows 100% foreign ownership of LLC and introduced the One Person Company SPC

As the name implies, a "foreign ownership company" means a company that is owned by foreign nationalities, whether as sole owners, multiple owners, or even in partnership with Omani nationalities.

To set up a foreign-owned company in Oman, you will need to follow certain steps, including obtaining the necessary approvals from the government authorities, registering the company, obtaining the necessary permits and licenses, and complying with the relevant laws and regulations.

There are several advantages to setting up a foreign-owned company in Oman, including access to the local market, a favorable business environment, low taxes, and a strategic location in the Middle East. However, there are also some challenges and risks to consider, such as the need to navigate the local regulatory environment, cultural differences, and geopolitical risks.

If you are considering setting up a foreign-owned company in Oman, it is important to do your research, seek expert advice, and develop a detailed business plan that takes into account the specific opportunities and challenges of the local market.