Setting up a company in Oman: opening a business in Muscat in 2026

Oman draws less attention than its neighbours, and that is often an advantage: a stable, less crowded market, open to the Indian Ocean. Here is what to know before setting up a company in Muscat.

A 100% foreign-owned company

The Foreign Capital Investment Law (Royal Decree No. 50 of 2019), in force since 1 January 2020, lets a foreigner own 100% of a company with no Omani partner. It also removed the former OMR 150,000 minimum capital.

Two limits to know:

• A list of activities remains reserved for Omanis. It was extended in 2024 and again in 2025: check your activity before anything else.
• Since 2025 a ministerial decision requires foreign-owned companies to employ at least one Omani within a year of starting.

The setup steps

Registration is done online, on the platform of the Ministry of Commerce, Industry and Investment Promotion:

• name reservation;
• constitutive documents and commercial registration;
• registration with the Oman Chamber of Commerce and Industry;
• municipality licence;
• tax registration, then the Royal Oman Police and the Ministry of Labour for residence permits.

The most common form is the limited liability company (LLC). A single shareholder can set up a one-person company (SPC). The registration itself is quick; what takes time is document attestation, the bank account and the approvals specific to some sectors.

Tax

• Corporate income tax: 15%. A reduced 3% rate exists for small structures, but it is reserved for Omani businesses meeting capital, income and headcount conditions.
• VAT: 5%, since April 2021.
• Withholding tax: 10% on royalties and certain services paid to non-residents. It is suspended on dividends and interest.
• Personal income tax: there is none today. A Royal Decree of June 2025 introduces it from 1 January 2028, at 5% on the part of income above OMR 42,000 a year.

France and Oman have a tax treaty signed on 1 June 1989. As with any project abroad, your personal tax residence should be reviewed with a tax adviser.

Living there: investor residency

Oman offers long-term residence to investors. In August 2025 the country launched a ten-year, renewable "golden residency", available from an investment of OMR 200,000 (company, property, bonds, among others). Foreigners can buy freehold in Integrated Tourism Complexes such as Al Mouj in Muscat.

Oman or Qatar?

Both countries accept the 100% foreign-owned company. Qatar taxes profits at 10% and has no VAT to date; Oman is at 15% with 5% VAT. The right choice depends mostly on where your clients are. See how to set up a company in Qatar.

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