Starting a business in Oman as an expat is promising. The country’s strategic location, along with its stable economy and government initiatives, provides multiple opportunities to entrepreneurs.
Whether you’re looking to set up a small enterprise or a large corporation, Oman offers several business structures. Understanding the various types of company structures available is crucial for navigating the local business landscape effectively.
This guide will provide an overview of the main types of companies available to foreign investors.
Types of Business Structures Available in Oman
Read about the types of companies in Oman that are available for foreign entrepreneurs –
- Limited Liability Company (LLC) – This is the most common business structure chosen by foreign entrepreneurs in Oman. To establish an LLC, you require a minimum of two and a maximum of 50 individuals. It offers various benefits and incentives like limited liability and a varied scope of business activities.
- Sole Proprietorship – This structure is established by a single person, giving you complete control over the operations and other benefits, such as minimal regulatory requirements. However, you are liable for all the company’s debts and obligations.
- Branch office – A branch office is an excellent opportunity for a company to establish its presence in a foreign country. This office conducts business activities on behalf of the parent company, including marketing, sales, and customer support.
- Joint Stock Company – These are ideal for large-scale investments and have specific capital requirements. Public Joint Stock Companies can raise capital by offering shares to the general public. At the same time, Closed Joint Stock Companies are privately owned and have a limited number of shareholders. Both structures provide limited liability to their shareholders.
- Holding Company – This structure is primarily established to own the shares in other companies and does not produce goods or services directly. It allows foreign investors to control multiple subsidiaries, manage investments, and centralise management. Holding companies offer flexibility and tax advantages, among other benefits for foreign investors.
Oman offers a diverse range of business structures designed to meet the needs of global entrepreneurs. From LLCs to holding companies, each option provides unique advantages that help your business grow. By understanding these structures, you can make informed decisions, ensuring a successful business journey in Oman. If you have dilemmas regarding business setup in Oman, you should get in touch with a well-known business management consultancy firm now.