Oman (OM)
Oman is one of the most welcoming and stable expat destinations in the Middle East, offering a unique blend of ancient Arabian heritage, dramatic natural landscapes, and a rapidly modernising economy.
Capital: Muscat
Region: Middle East
Language: Arabic
Currency: OMR (ر.ع.)
Cost of living: Moderate (index 58)
Emergency: 9999
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Business Setup
Start a business or go freelance in Oman.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Confirm the commercial activity is eligible under Oman commercial law and does not require a local Omani partner
- 2 Arrange local sponsor/partner if required (51% Omani ownership for mainland LLC) or identify a suitable Free Zone
- 3 Register business name and obtain a Commercial Registration (CR) from the Ministry of Commerce and Industry (moci.gov.om)
- 4 Obtain any sector-specific licences (e.g. professional, industrial, tourism licences as applicable)
- 5 Register for VAT with the Oman Tax Authority (OTA) if annual turnover exceeds OMR 19,250 (mandatory) or OMR 9,625 (voluntary)
- 6 Open a business bank account with a licensed Omani bank (Commercial Registration required)
- 7 Register with the OTA for corporate income tax purposes and set up compliant accounting records
Tax registration
Register with the Oman Tax Authority (OTA) at taxoman.gov.om if VAT turnover exceeds OMR 19,250/year. Corporate income tax filing is required if operating through a company structure (15% standard rate; 10% SME rate for taxable income under OMR 100,000 if qualifying). Self-employed individuals may face income tax in their home country even if Oman levies none — consult a qualified cross-border tax advisor before establishing your structure.
VAT threshold
OMR 19,250/year — mandatory registration; OMR 9,625/year — voluntary registration
Invoicing
VAT invoices must include: OTA Tax Registration Number (TRN), seller and buyer name and address, invoice date, description of goods/services, taxable value, VAT amount at 5%, and total amount payable. Arabic and English invoices are preferred for government clients. Invoices must be retained for 10 years.
Social security
Expat freelancers and self-employed individuals are NOT covered by Oman's Public Authority for Social Insurance (PASI). PASI contributions are mandatory only for Omani nationals. Expats should maintain comprehensive private international health insurance and independently arrange personal pension or retirement savings, as there is no state-backed equivalent for non-Omanis.
💡 Expats cannot typically self-sponsor for employment in Oman. Most self-employed expats either: (1) work through a local Omani partner or sponsor's company; (2) operate via a Free Zone entity (SEZAD, SOHAR, Al Mazunah) which permits 100% foreign ownership; or (3) use a UK, US, or EU-registered limited company remotely while residing in Oman on a visit visa — a legal grey area that may breach visa conditions. A formal freelancer or independent contractor visa is under active consultation within Vision 2040. Working without valid employment or residency documentation is a deportable offence.
🏢 Business Structures
Sole Establishment · Mansha'a Fardiyya
Sole Establishment / Sole Proprietorship
OMR 3,000 minimum
Min. capital
1–2 weeks
Setup time
Liability: Unlimited personal liability
Setup cost: OMR 50–150 registration fees
Best for: Omani nationals only. Expats cannot form sole establishments under Oman commercial law.
LLC · Sharikat Tawsiyya Basita (S.T.B.) / LLC
Limited Liability Company
OMR 20,000 general; OMR 150,000 for foreign majority ownership (51% minimum Omani ownership required in most sectors OR 100% foreign ownership permitted in designated Free Zones such as SEZAD, SOHAR, and Al Mazunah)
Min. capital
4–8 weeks
Setup time
Liability: Limited to subscribed capital
Setup cost: OMR 500–2,000 registration and legal fees
Best for: Most common structure for SMEs in Oman. Expats must have an Omani partner holding at least 51% OR operate through a Free Zone for 100% foreign ownership. Widely used for services, trading, and consulting.
Joint Stock Company · Sharikat Musahama Omaniyya Maqfula (SAOC) or Amma (SAOG)
Private Joint Stock Company (SAOC) or Public Joint Stock Company (SAOG)
SAOC: OMR 150,000; SAOG: OMR 2,000,000
Min. capital
8–16 weeks
Setup time
Liability: Limited to shareholding
Setup cost: OMR 3,000–10,000+
Best for: Larger businesses requiring institutional investment. SAOG is publicly traded on the Muscat Stock Exchange; SAOC is closed. SAOC allows 100% foreign ownership subject to Capital Market Authority (CMA) approval.
Free Zone Company · Free Zone Entity (SEZAD / SOHAR / Al Mazunah)
Free Zone Company
USD 150,000 (SEZAD Duqm); varies by zone and activity
Min. capital
4–12 weeks
Setup time
Liability: Limited (LLC or Branch structure within zone)
Setup cost: USD 1,000–5,000 in zone fees plus required capital
Best for: 100% foreign ownership permitted; tax holidays; no customs duties within the zone; ideal for manufacturing, logistics, and export-focused operations. Important: Free Zone companies cannot sell directly into the Oman domestic market without engaging a licensed local distributor.
Branch of Foreign Company · Branch Office / Maktab Far'i
Branch of Foreign Company
No statutory minimum capital but a bank guarantee is typically required (OMR 50,000–150,000 depending on sector)
Min. capital
6–12 weeks
Setup time
Liability: Parent company is fully liable
Setup cost: OMR 1,000–3,000 registration fees
Best for: Multinationals executing government contracts in road construction, oil and gas, or infrastructure. Activity scope is limited to the parent company's registered activities. Approval from the Ministry of Commerce and Industry is required.
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