Blog

It’s an exciting time to start a business in Oman in 2025. Oman The government of Oman has also done a number of things to ease the way for businessmen. When it comes to starting a new business, it’s important to know the rules. Here is a step by step guide to how you can launch this business in 2025 based on the updated business startup rules in Oman.

Introduction of New Economic Vision

Oman is using diversification of the economy as its new economic vision and to establish a business-friendly atmosphere. The government is trying to lure foreign investment, promote innovation and cut through red tape. This vision is reflected in new 2025 rules on starting a business, which should facilitate entrepreneurs to establish operations.

Types of Business Entities in Oman

Before starting a business, you need to decide the type of business entity that suits your needs. In Oman, businesses can be set up under various legal structures, such as:

• Sole Proprietorship: Ideal for small businesses with one owner.
• Limited Liability Company (LLC): Popular for medium to large businesses, requiring a local partner if foreign ownership exceeds 49%.
• Joint Stock Company (JSC): Best for larger operations with shareholders.
• Branch Office: Foreign investors can establish a branch of their existing company in Oman.

Foreign Ownership Rules

In 2025, Oman has loosened its restrictions on foreign ownership in a bid to attract more overseas investment. Under the new rules, foreign investors can have a full stake in businesses in certain sectors including technology, manufacturing and tourism. But some companies still need a local partner in order to have foreigners as owners, such as in industries that the government considers strategic.

Registering Your Business in Oman

The time and effort required for business registration in Oman has swiftly reduced due a government-driven promotion for digitalization. Registration is now easier all in one and faster saving time and money. Entrepreneurs may incorporate at a commercial registry through the Oman Investment Authority (OIA) or Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) web portal.

Here are the steps for business registration in Oman:

• Choose a business name and ensure it complies with Omani regulations.
• Obtain initial approval from the relevant authorities.
• Submit your application with the required documents, including identification, address proof, and business plan.
• Pay registration fees and receive your business registration certificate.

Licensing Requirements

Once you have your business registered, you must get a business license. Licensing requirements are determined by the type of business and where it is located. There are various kinds of licenses, an example of which include:

• Commercial License for general trading and business operations.
• Industrial License for manufacturing companies.
• Professional License for service-oriented businesses, such as consulting or healthcare.

The licensing process has been simplified, and most licenses can now be obtained online.

Taxation and Incentives for Startups

The tax system in Oman is relatively new business-friendly, especially during the initial years. The corporate tax rate is fairly low, with a minimum rate of 15%. But some sectors, including tech and renewable energy, may qualify for tax breaks or reductions.

In addition, the government offers various incentives, such as:

• Tax holidays for new businesses in strategic industries.
• Subsidies for businesses involved in research and development (R&D).
• Reduced utility costs for companies in certain free zones.

Labour Laws and Hiring Employees

If you plan on setting up a business in Oman, you’ll need to know the laws and labor requirements. The government has taken steps to improve the work environment and promote employment as of 2025.

• Omanization Policy: This policy requires businesses to hire a certain percentage of Omani nationals. The percentage varies based on the industry and size of the business.
• Work Permits: Foreign workers must obtain work permits, and businesses must comply with regulations regarding expatriate employees.
• Minimum Wage: The government has established a minimum wage for Omani workers, which businesses must adhere to.

Oman Free Zones and Their Benefits

Oman has several free zones offering additional benefits for businesses, such as:

• 100% foreign ownership
• Tax exemptions for a specified period
• No customs duties on imports and exports

Some popular free zones in Oman include the Sohar Free Zone, Salalah Free Zone, and Duqm Free Zone. These zones are particularly beneficial for businesses involved in manufacturing, logistics, and technology.

Environmental and Compliance Regulations

In 2025, Oman is pursuing a more sustainable development path, with tougher environmental legislation. Start-ups must follow rules to have as little an imprint on the environment as possible. This includes and is not limited to waste and pollution, water, air and noise emission regulations. Failure to do so could result in fines and penalties to companies not adhering to these requirements.

Navigating the New Business Startup Landscape in Oman

Launching a business in Oman in 2025 is a remarkable chance for local and foreign businessmen. The government has also made a more fluid business environment, which results in less red tape and easier to start and operate a business. Once you are familiar with the new procedures, laws and incentives you can make a profitable, hassle-free entry, and learn how you can benefit from Oman’s expanding economy.

Whether you’re starting a tech company, launching a retail business or leap into industry, Oman is the place where all your entrepreneurial dreams can come true. Be sure to continue to follow any updates to remain in compliance and help you optimize for success.

FAQ