Global Upside helps businesses expand into Oman by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Omani laws and regulations.
The hiring and incorporation processes in Oman are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Oman. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Situated in the southeastern coast of the Arabian Peninsula at the conflux of the Arabian Sea and the Persian Gulf, Oman is a high-income economy majorly dependent on its oil and gas reserves. The nation has also diversified its economy via tourism and gas-based industries.
- Oman has additional income sources such as shipping and logistics, manufacturing, aquaculture, and mining industries.
- Oman imports basic manufactured goods, foodstuffs, and machinery and transport items.
- Oman’s top export items are fertilizers, aluminum, plastics, and plastic articles.
A limited liability company (LLC) is a form of an entity set up that requires a minimum of 2 investors and it limits the liability of the investors to their shared contribution. One of the investors in an LLC must be a resident of Oman. This is the most preferred form of a business entity set up preferred by business owners.
A joint-stock company (JSC) requires at least 3 investors, one of whom should be an Omani resident. The shares of this form of an establishment are not available to trade publicly.
A commercial agency is a structure that works to advertise and present services and products of the parent company in the country. The main function of this establishment is to export the services and products to Oman by a foreign company.
A branch office can be set up by foreign companies that are open to start an establishment in Oman. A branch is not treated as a legal entity that is separate from the parent company and hence the latter is responsible for all the activities and obligations.
A representative office is a form of an entity set up that cannot engage in any commercial and income-generating activities. It can only engage in – i) market research and ii) advertising the business of the parent company.
It takes a minimum of four to six weeks to establish a legal entity set up in Oman.
The Omani Labor Law (OLL) regulates the employment relationship in Oman and mentions all rights and responsibilities.
The terms that need to be stipulated in the employment contract of Oman are:
- Name and address of the employer and establishment
- Job location
- Name, date of birth, qualifications of the employee
- Nationality and place of residence of the employee
- Nature and type of work
- Contract duration
- Remuneration, allowances, and payroll cycle
- Termination and notice period
The public holidays in Oman are:
- Jan. 1: New Year’s Day
- Mar. 11: The Prophet’s Ascension
- May 13: Eid Al Fitr (4 days)
- July 20: Eid Al Adha (4 days)
- July 23: Renaissance Day
- Aug. 10: Islamic New Year
- Oct. 19: The Prophet’s Birthday
- Nov. 18: Oman National Day (2 days)
The corporate tax rate in Oman is 15%.
Value Added Tax (VAT)
The VAT rate in Oman is 5%, which has been implemented from 16 April 2021.
Oman, along with the other Gulf Cooperation Council (GCC) member countries, published its objective to implement VAT.
At present, there is no comprehensive legislation that deals with data protection issues. Personal information is protected by specific provisions stipulated across an assortment of laws.
- The “Electronic Transactions Law” protects the privacy of data incorporated in electronic transactions
- The “Cybercrime Law” establishes the violation of the privacy of individuals, with the help of technology, as a criminal offense.
Anti-Bribery & Anti-Corruption Law
There is no separate law for bribery in Oman, however, both bribery and corruption are monitored by various definite and extended laws.
The Oman Sultani Decree No. 7/2018 On the Issuance of the Oman Penal Code contains the imperative requirements (Article 207-212) govern bribery.
Bribery offenses in Oman relate exclusively to public bribery.
1. Bribery of Public Officials
i) Imprisonment for at least 3 to 5 years
ii) Monetary fine
iii) Dismissal from holding a position in the office
iv) Removal from office