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Middle East

Company Formation & Corporate Services in Oman

Oman is building an industrial and logistics base around its ports and free zones — and it’s about to become the first Gulf country with a personal income tax. Neither fact should surprise a client midway through a five-year plan, which is why we lead with what’s changing, not just what’s true today.

Plan For It Now

What’s Changing

Oman enacted its first Personal Income Tax Law by Royal Decree in 2025. From 1 January 2028, a 5% tax will apply to individuals — resident and non-resident — earning above OMR 42,000 a year, after deductions. Until then, Oman remains a 0% personal income tax jurisdiction. If your business plan runs past 2028, this is worth factoring in now, not discovering later — we build it into any structuring recommendation with a multi-year horizon.

Is This The Right Fit

Best For / Think Twice If

Best for

Manufacturing, logistics, and industrial businesses using Omani ports and free zones/SEZAD; businesses building a 5+ year Gulf presence.

Think twice if

You need a purely paper presence with no operational activity — Oman’s free zones and SEZAD are built for genuine industrial and logistics use cases, not shell structures.

Where You Can Register

Oman’s Free Zones & SEZAD

Location Typical fit
Special Economic Zone at Duqm (SEZAD) Al Wusta, on the Arabian Sea Heavy industry, petrochemicals, logistics and large-scale projects
Sohar Freezone North Al Batinah, beside Sohar Port Metals, petrochemicals, manufacturing and logistics
Salalah Free Zone Dhofar, beside the Port of Salalah Trans-shipment, logistics, food processing and manufacturing
Muscat Airport Free Zone Muscat, beside the international airport Light manufacturing, e-commerce and air-freight-linked trade

All four sit under Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ), which licenses the companies inside them. Mainland companies register with the Ministry of Commerce, Industry and Investment Promotion, and every company registers with the Oman Tax Authority.

The Detail That Matters

Ownership & Tax Snapshot

Most sectors permit up to 100% foreign ownership under Oman’s Foreign Capital Investment Law, with some strategic sectors retaining local-participation requirements. Corporate income tax is 15% generally, with a reduced rate for qualifying small and medium enterprises. VAT applies at 5%. Personal income tax does not apply today but will apply from 1 January 2028 at 5% above OMR 42,000 of annual income, under the Personal Income Tax Law enacted in 2025 — see “What’s changing,” above.

How It Runs

The Setup Process

  1. Structure and location decision: mainland, free zone, or SEZAD (Duqm), based on activity.

  2. Company name reservation via the Ministry of Commerce, Industry and Investment Promotion.

  3. Commercial registration and licensing.

  4. Sector approvals (e.g. environmental, municipal) as applicable.

  5. Oman Tax Authority registration for corporate tax and VAT.

  6. Bank account introduction and Omanisation-compliant hiring plan.

After Incorporation

Ongoing Compliance Calendar

Annual

  • Commercial registration renewal
  • Corporate tax return
  • UBO confirmation

As applicable

  • Quarterly: VAT return where registered

Ad hoc

  • Omanisation quota compliance
  • From 2028, employer PIT withholding obligations for in-scope employees
At A Glance

Oman At A Glance

5.5M Population World Bank, 2025
2.4% Real GDP growth World Bank, 2025

Main Industries

  • Oil & gas
  • Logistics & ports
  • Manufacturing & metals
  • Mining
  • Tourism
  • Fisheries

Why Choose This Market

  • Ports outside the Strait of Hormuz: Duqm, Salalah and Sohar give direct access to the Arabian Sea and Gulf of Oman shipping routes.
  • Zones built for industry: Free zones and SEZAD are designed for manufacturing, logistics and large projects, with incentives for qualifying investments.
  • A long-term Gulf base: A stable, steadily diversifying economy suited to businesses planning a five-year-plus presence.
Oman FAQs

Questions We Are Actually Asked

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Does Oman have personal income tax?

Not yet. Oman enacted a Personal Income Tax Law in 2025 that takes effect on 1 January 2028, applying a 5% rate above OMR 42,000 of annual income. Until then, there is no personal income tax.

Can I own 100% of my Omani company?

In most sectors, yes, under the Foreign Capital Investment Law. Some strategic sectors retain local-participation requirements, checked against your specific activity.

Should I set up in a free zone, SEZAD or on the mainland?

It depends on what you do and who you sell to. Duqm, Sohar, Salalah and Muscat Airport are built for industrial, logistics and export activity, with incentives for qualifying projects. If your customers are mainly in Oman, a mainland company registered with the Ministry of Commerce, Industry and Investment Promotion is usually the simpler route.

What incentives do Oman’s free zones offer?

Depending on the zone and project, incentives can include tax and customs benefits and lower Omanisation ratios than on the mainland. Terms differ from zone to zone and are agreed for each project, so we confirm them with the zone authority for your activity rather than quote a general figure.

What is Omanisation, and how does it affect hiring?

Omanisation sets a minimum share of Omani nationals in a company’s workforce, with ratios that vary by sector and activity. It affects how many expatriate visas you can obtain, so we build it into the hiring plan from the start.

How We Check This Page

Checked against Royal Decree No. 56/2025 and Oman Tax Authority guidance, 31 Aug 2026.

Regulatory and tax rules change. This page is general information about Oman, not tax or legal advice — we confirm the current position for your activity before you commit to a structure.

From Our Insights

Oman Insights

All Oman insights
Talk It Through

Not Sure Which Structure Fits?

Bring us the business you actually plan to run in Oman, and we will tell you honestly whether this is the right jurisdiction for it — and which structure inside it makes sense.

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