Can Foreigners Own 100% of a Company in Oman Without a Local Partner?

Can Foreigners Own 100% of a Company in Oman Without a Local Partner?

Yes. Foreign nationals can establish and fully own eligible companies in Oman without an Omani shareholder. Under Royal Decree 50/2019, Oman’s Foreign Capital Investment Law provides a legal framework for foreign investors to establish investment projects independently or alongside other investors. However, 100% foreign ownership in Oman is not automatically available for every business activity. The proposed activity, applicable restrictions, legal structure and operating licences must all be checked before incorporation.

This distinction matters when choosing between a mainland company and a free-zone entity. Full ownership, permission to conduct a particular business activity, and approval to begin operations are separate matters. An investor should establish eligibility first, select the appropriate jurisdiction second, and then complete company registration and any sector-specific licensing.

At a glance

• Foreign investors can own 100% of eligible Omani companies without a general requirement for an Omani shareholder.
• Ministerial Decision 209/2020 establishes restricted activities for foreign investment, with amendments in 2023 and 2024.
• Mainland companies and free-zone entities operate under different registration and investment frameworks.
• Under the 2025 amendment to the executive regulations, a foreign-invested company must employ at least one Omani worker after one year from the commencement of commercial activity.
• Full share ownership does not automatically grant an investor residence status or permission to conduct every business activity.
• Connsect's mainland LLC registration service costs 275 OMR, with a stated processing time of 7–10 working days.

What Omani law says about full foreign ownership

The principal legislation is Royal Decree 50/2019, which issued the Foreign Capital Investment Law. It establishes the legal framework for investment projects established by non-Omani individuals and legal entities.

The law does not impose a universal requirement for foreign investors to appoint an Omani shareholder. A foreign investor may establish an investment project independently or participate alongside other investors, subject to the applicable legal restrictions.

Article 14 provides for a ministerial list of economic activities in which foreign investment is prohibited. This is the key qualification behind the principle of full foreign ownership: an investor must establish that the proposed activity is eligible before choosing a shareholding structure.

The legislation can be read through the Foreign Capital Investment Law. The executive framework is also relevant, particularly Ministerial Decision 72/2020, which issued the law's implementing regulations.

Does the rule apply to Iranian and other non-GCC investors?

The legal framework is based on whether an investor is Omani or non-Omani. It does not establish a general requirement that every foreign investor must have an Omani business partner.

Iranian nationals and other international investors can therefore consider wholly foreign-owned structures where the proposed activity qualifies. Nationality should not be confused with activity eligibility: the business classification, relevant approvals and documentation requirements still need to be assessed individually.

Which business activities qualify for 100% foreign ownership?

Foreign ownership eligibility depends on the precise economic activity rather than simply the company's trading name or general business description. Before incorporation, the proposed activity codes should be checked against the current restrictions on foreign investment.

Ministerial Decision 209/2020 establishes the prohibited-activities framework. It was subsequently amended by Decision 364/2023 and Decision 435/2024. Investors should consider these decisions together rather than relying on the original list alone.

The relevant legislative records are available through the foreign investment restrictions decision, the 2023 amendment and the 2024 amendment.

Why activity classification matters

Two businesses operating in similar markets may have different regulatory classifications. A broad description such as commercial services is not sufficient when the actual activities include several distinct services.

For a company planning multiple activities, each proposed activity should be assessed separately. Eligibility for one activity does not automatically extend to every additional activity listed in the company's registration.

It is also important to distinguish foreign ownership eligibility from operational licensing. Even where full foreign shareholding is permitted, a business may need additional approvals from the authority responsible for its sector before it can begin trading.

Mainland or free zone: which ownership structure should you choose?

Both mainland and free-zone structures can accommodate 100% foreign ownership, subject to their respective activity rules and regulatory requirements. The right choice depends on the company's customers, operating location, infrastructure requirements and intended commercial activities.

Mainland company registration

A mainland company is established under Oman's general commercial registration framework. Foreign investors can use this route for eligible activities without automatically appointing an Omani shareholder.

This structure is worth considering when the business intends to operate in the domestic Omani market outside a designated free-zone framework. The investor must still select an eligible activity, establish the appropriate legal form and obtain any required operating licences.

For investors seeking a straightforward mainland limited liability company, Connsect provides a registration service without requiring the client to travel to Oman. The service includes the company registration process and costs 275 OMR, with a stated timeframe of 7–10 working days.

Free zones and special economic zones

The Public Authority for Special Economic Zones and Free Zones (OPAZ) promotes investment in the economic zones and free zones under its remit. Its published investment incentives include 100% foreign ownership, subject to the applicable zone and project requirements.

Other published incentives include the possibility of repatriating capital and profits, tax exemptions of up to 30 years under the relevant conditions, and customs facilities for imports and re-exports. These incentives should be evaluated against the specific zone, business activity and investment arrangement rather than treated as automatic benefits for every company.

Depending on the project, the investment process may involve submitting an application, selecting a location, arranging land allocation where required and entering into a usufruct agreement. Businesses requiring industrial premises, logistics infrastructure or specialised facilities should assess these arrangements before committing to a location.

OPAZ provides information through its official investment portal and its company registration and investor FAQ.

Consideration	Mainland	Free zone or economic zone
Foreign share ownership	100% ownership is possible for eligible activities.	100% ownership is among the published investment incentives.
Registration framework	General company registration and foreign investment regulations.	Applicable zone regulations and registration procedures.
Investment incentives	General investment framework and applicable project benefits.	Potential tax and customs incentives subject to conditions.
Operating location	According to the company's licences and permitted activities.	Within the relevant zone's operating framework.
Land arrangements	Subject to applicable property and land regulations.	May involve land allocation and a usufruct agreement.

How to establish a wholly foreign-owned company in Oman

The most efficient approach is to establish activity eligibility before submitting incorporation documents. This avoids choosing a company structure that later requires changes because of an activity restriction or licensing condition.

1. Define the business activity. Prepare a precise description of the products or services the company will provide. Separate the primary activity from any additional activities that may require different approvals.
2. Check foreign ownership eligibility. Compare the proposed economic activity codes with Decision 209/2020 and its amendments, Decisions 364/2023 and 435/2024.
3. Choose mainland or a free zone. Consider the target market, operating location, infrastructure, land requirements and applicable investment incentives.
4. Select the legal structure. Determine the appropriate company form and shareholder arrangement. Where full foreign ownership is permitted, the proposed shareholding should be accurately reflected in the incorporation documents.
5. Prepare shareholder documentation. Individual shareholders provide their identification documents. Corporate shareholders must also prepare the relevant company registration records, constitutional documents and board resolution.
6. Submit the registration application. Applications may be processed through the Oman Business Platform or the relevant zone registration route. OPAZ also identifies Sanad Service Centres as an available application channel.
7. Complete applicable payments and approvals. Pay the relevant registration and administrative charges and obtain any required sector-specific approvals.
8. Prepare for commercial operations. Arrange the necessary operational licences, employment compliance and other obligations associated with the company's activities.

For free-zone projects, the registration process should be coordinated with the relevant zone authority or operator. Land allocation and usufruct arrangements may form part of the investment process where the project requires dedicated premises.

Documents and requirements for foreign shareholders

Documentation depends on whether the shareholder is an individual or an overseas legal entity. Corporate shareholders generally have additional documentation and authentication requirements.

Individual foreign shareholders

• Passport copy for each non-Omani shareholder.
• Shareholder identification and registration details.
• Information about the proposed company structure and economic activities.
• Additional documents required for the relevant registration or sector approval.

Foreign corporate shareholders

• Commercial registration certificate of the parent company.
• Constitutional documents or articles of association.
• Board resolution authorising the investment or establishment of the Omani company.
• Identification documents for authorised representatives and signatories.
• Required translations and document authentication.

OPAZ's registration guidance identifies shareholder identity documents and passports for non-Omani shareholders as part of the application requirements. Where a foreign company participates as a shareholder, its commercial registration, constitutional documents and board resolution are also relevant.

Corporate documents should be prepared and authenticated before submission. The applicable translation and certification requirements should be checked with the registration authority or zone operator handling the application.

Registration costs and processing times

Company formation costs depend on the legal structure, jurisdiction, activities and additional licensing requirements. The cost of a registration service should be distinguished from government charges and any separate sector or zone-related expenses.

Service	Connsect price	Processing time
Mainland LLC company registration	275 OMR	7–10 working days
Company registration with a two-year investor visa	1,090 OMR	Registration: 7–10 working days; investor visa: 20–30 working days
Company registration with a one-year investor visa	920 OMR	Registration: 7–10 working days; investor visa: 20–30 working days
Two-year investor visa service	795 OMR	20–30 working days
One-year investor visa service	625 OMR	20–30 working days

The mainland registration service is available without the client travelling to Oman. Its published price and service details are available on the Connsect company registration page.

For free-zone incorporation, investors should also account for the relevant registration charges, administrative services and, where applicable, land or usufruct arrangements. These payments follow the applicable zone's procedures.

Does full company ownership qualify you for Oman residency?

Owning all the shares in an Omani company and obtaining investor residency are separate processes. Company incorporation may provide the basis for pursuing an investor visa, but the visa must be processed separately under the applicable requirements.

Connsect's two-year investor visa service costs 795 OMR and includes the business plan, municipal licence, visa, medical test and Oman ID card. The one-year service costs 625 OMR. The stated investor visa processing time is 20–30 working days.

Investors planning to relocate with their families can also consider family residency arrangements. Connsect's published service prices are 150 OMR for a spouse and 100 OMR for each child under 21.

Omani employment obligations after incorporation

Full foreign share ownership does not exempt a company from Oman's employment and Omanisation requirements. Foreign investors should include local recruitment obligations in their operating and financial plans from the beginning.

Ministerial Decision 411/2025, dated 5 October 2025, amended the executive regulations by adding Article 12 bis. It requires a company or establishment founded by a foreign investor to employ at least one Omani worker after one year from the commencement of commercial activity.

The Omani employee must be registered with the Social Protection Fund, and the company must comply with the applicable Omanisation ratios. This is an employment compliance obligation, not a requirement to appoint an Omani shareholder.

The amendment is available in Ministerial Decision 411/2025. Investors should account for the employment requirement when preparing staffing budgets and planning their first year of operations.

Common mistakes foreign investors should avoid

• Choosing an activity before checking eligibility. The business activity should be assessed against the foreign investment restrictions before the legal structure is finalised.
• Relying on an outdated prohibited-activities list. Decision 209/2020 must be considered together with its 2023 and 2024 amendments.
• Assuming mainland and free zones have identical rules. Each jurisdiction has its own procedures, operating framework and applicable investment incentives.
• Confusing company registration with an operating licence. A commercial registration does not replace additional approvals required for regulated activities.
• Ignoring future employment obligations. The requirement to employ at least one Omani worker after the first year should be included in the business plan.
• Assuming incorporation automatically grants residency. Investor visa processing is a separate procedure with its own requirements.
• Submitting incomplete corporate documents. Overseas corporate shareholders should prepare their registration documents, constitutional records and board resolutions before filing.

Frequently asked questions about 100% foreign ownership in Oman

Plan your Oman company registration with Connsect

Before committing to a company structure, establish whether your proposed activity qualifies for full foreign ownership. The next decisions are the choice of mainland or free-zone registration, the legal structure, shareholder documentation and any additional operating licences.

Connsect assists international investors with activity assessment, company structure selection, mainland company registration and investor residency arrangements. The first consultation is free and provides an opportunity to review the proposed business activity and identify the appropriate registration route.

To discuss your proposed investment and receive guidance on the next steps, request a consultation with Connsect.