Establishing a company in Oman offers expatriates numerous advantages, including access to free trade zones, tax exemptions, and government incentives for significant investors through special land allocations.
The World Economic Forum recognizes Oman as a strong player on the global stage, showcasing its investment potential and exceptional commercial connectivity. The Ministry of Commerce and Industry actively seeks innovative strategies to empower entrepreneurs and businesses, fostering an environment conducive to success. Oman ranks among the top 20 countries worldwide in terms of its macroeconomic stability.
For expatriate families, Oman is an ideal destination for settling down. The government facilitates a smooth transition, providing options for freehold properties and robust property rights that ensure security in a safe environment.
Recent regulations have introduced a mortgage system for property usufruct, allowing foreigners to secure long-term property rights for up to 99 years, thereby enhancing the real estate sector.
The country's advanced infrastructure simplifies commuting and transportation within Oman, with multiple airports strategically located to connect various cities.
Oman offers a range of trade licenses. Under Omani law, investors can benefit from establishing Limited Liability Companies (LLCs), free zone setups, Open Joint Stock Companies, and Closed Joint Stock Companies.
These options empower investors to choose projects and activities that align with their interests, with the LLC being the most commonly utilized trade license in Oman.
Oman Tax Environment
Oman offers a favorable tax landscape for businesses, with no taxes imposed on business owners or personal income. The country facilitates tax exchanges with other nations. The corporate tax rate for LLCs in Oman is set at a flat 15%. In April 2021, Oman implemented a Value Added Tax (VAT) at a rate of 5%.
Companies operating in free zones can enjoy a full tax exemption for a period of 50 years. Additionally, goods and trade within the Gulf Cooperation Council (GCC) are exempt from customs duties.
Cost Of Oman’s Trade License
The initial cost for obtaining a trade license in Oman is set at 3,200 OMR. Currently, there are three distinct types of free zones, each with its own unique characteristics.
For example, the costs associated with a general trading license are as follows:
- Annual registration fee for Salah or Sohar Free Zone: 3,000 OMR
- Annual registration fee for KOM: 2,200 OMR
- Annual registration fee for SEZD: 1,200 OMR
It is important to consider that all license fees should also include consultant charges for establishing a company in Oman.
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