Omani Limited Liability Company
Limited Liability Company in OMAN
Oman is always an ideal location for an individual to invest and earn. For a Business Framework Oman always has a necessity to obey with the governing laws for foreign business activity especially the Foreign Capital Investment Law. For a Business to imprint their brand in Oman, there are several methods according to the size of the business, the parties involved, and the desired shareholder base for the business.
Limited Liability Company (LLC) is the most preferred. Here, each partner is liable only to the extent of his share in the business. Under an LLC, public subscription for raising capital is not permitted. The LLC structure suits a small operation with a limited number of promoters. LLC must be registered under Commercial Register with a fixed capital divided into equal shares. Contributions to the capital of a LLC can be in cash or any kind. Each partner shall have the right to subscribe for a number of new shares in proportion to the number of shares he owns, and if a partner has subscribed for less that the proportion.
Features of a Limited Liability Company in Oman
- It must have a minimum of 2 shareholders and a maximum of 40 shareholders.
- The minimum capital requirement is OR 150,000.
- A foreign shareholder can have up to 70% of the shares in the company except for any individual from the GCC countries or the USA who can own 100% of the shareholding.
- It is mandatory to appoint an advisor who must be accredited to Oman.
- Appointment of one director is also necessary. He/she can be a director as well as a shareholder of the LLC.
Foreigners planning to do businesses in Oman for various trading and manufacturing business activities mostly prefer Omani LLC. The registration processes are as follows:1. Name Reservation
The Ministry of Commerce and Industry (MCI) will approve the name for your company. A new company cannot have the same name as the existing company. Also MCI requires a higher starting share capital for companies with certain words, such as “Oman”, in their name. The name should consist of any word or name of the partners of the company without misleading the Company’s objectives.2. MCI Application This involves preparing and submitting the following documents:
- Foreign Shareholder Documents: Each shareholder (if a corporate entity) must provide its constitutional documents, certificate of incorporation, board resolution and power of attorney
- Omani Shareholder Documents: Each shareholder must provide an MCI computer printout, certificate of registration, authorized signatory form and Oman Chamber of Commerce and Industry (OCCI) certificate and shareholders’ resolution
- A constitutive contract and an authorized signatory form, which forms a part of the constitutional documents of an LLC
- Bank Certificate: This is obtained from a bank in Oman and is used as evidence of compliance with the LLC’s capital requirements
This is the most important step in the registration process and is obtained immediately after the MCI completes the registration examination of your company and approves the certificate.4. Other Approvals
Approvals depending on the LLC’s intended business activities, further governmental approvals may be required.5. Post-Registration
Once the LLC registration is approved, and you get all the necessary Certificates from the Ministry, you will then need to organize and obtain:
- A municipality license
- Tax registration
- Registration with the Royal Oman police
- Registration with the Ministry of Manpower, to apply for labor clearances and visas
- Import/export license, depending on the nature of the business
- Industrial, Environmental and other permits and licenses, depending on the nature of the business
- Copy of passport or identity cards of shareholders
- Copy of passport or identity cards of all intended authorized signatories
- Approved authorized signatory form, with names and sample signatures of each authorized signatory reproduced.
- Standard company registration forms, including constitutive contract and Articles of Association
- Application for specific licenses depending on the company’s activities
- Certificate of initial capital deposit from the bank
For Lease Agreement
- Company lease agreement
- Company statutes including memorandum and articles of incorporation
- Chamber of Commerce and Industry affiliation certificate
- Agency Certification, if applicable
- Management of LLC can be executed by one or more managers who maybe or maybe not partners of the company.
- Managers can appointed for a limited or indefinite period.
- Managers can execute all activities mentioned in the Company’s Objectives or else limitations have to be set by Company’s MOA or any agreements registered in the Commercial Register.