Legal Steps to Start a Company in Oman

Oman is experiencing rapid growth in its business sector, making it an attractive destination for both local and foreign investors. If you're planning to start a company in Oman, it's essential to understand the legal procedures involved to ensure a smooth and compliant launch of your business.

In this article, we’ll guide you through the key legal steps to establish a company in Oman, and explain the vital role of a corporate lawyer or legal advisor in protecting your interests.

1. Choosing the Legal Structure

The type of company depends on the number of owners and the nature of the business. The most common legal entities in Oman include:

  • Sole Proprietorship

  • Limited Liability Company (LLC)

  • Closed or Public Joint Stock Company

  • General or Limited Partnership

  • Branch of a Foreign Company

Each type has its own legal requirements. Consulting a corporate lawyer will help you choose the best structure for your goals.

2. Reserving the Trade Name

You must reserve a unique commercial name with the Ministry of Commerce, Industry and Investment Promotion. The name should reflect your activity and comply with local naming laws.

3. Drafting the Memorandum and Articles of Association

You must prepare two key legal documents:

  • Memorandum of Association (MoA)

  • Articles of Association (AoA)

These documents outline:

  • Partners' names and shares

  • Capital contribution

  • Objectives of the company

  • Decision-making process

  • Profit and loss distribution

A corporate lawyer can ensure the documents are legally sound and protect the rights of all partners.

4. Obtaining Required Licenses and Approvals

Some business activities require additional approvals from specific authorities, such as:

  • Ministry of Health

  • Muscat Municipality (or the relevant local municipality)

  • Environment Authority

  • Royal Oman Police (for security or sensitive sectors)

Ensure you obtain these licenses before starting operations.

5. Registering the Commercial License

Once all documents are ready, you must register the company via the “Invest Easy” online portal and obtain a commercial registration (CR) number.

6. Registering with Government Entities

Depending on your business, you may need to register with:

  • Public Authority for Social Insurance (PASI) – if you plan to hire employees

  • Ministry of Labour – for employment permissions

  • Tax Authority – if your revenue exceeds the mandatory registration threshold

7. Opening a Corporate Bank Account

Once the company is legally registered, you can open a bank account in the company’s name to manage financial operations.

8. Launching Your Business

After fulfilling all legal and regulatory steps, your company is officially ready to start operating in Oman.

Why You Need a Lawyer or Legal Advisor

Having a qualified business lawyer by your side will help:

  • Ensure full legal compliance with Omani laws

  • Draft clear and strong founding documents

  • Avoid legal or administrative errors

  • Protect your shareholders' rights

  • Save time and avoid delays