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Gulf state with diversifying economy and free zones
Region
MIDDLE EAST
Corporate Tax
15%
Setup Time
3 weeks
Currency
OMR
Oman, a Gulf state with long trading history, offers access to GCC markets with economic diversification efforts. The country's company registration framework supports business setup in a relatively open Gulf environment.
With a population of 5 million (significant expatriate portion), Oman offers Gulf living with traditional character. Arabic is official, with English common in business. The climate is hot, particularly in summer.
Healthcare is good through public and private facilities. Safety is excellent with very low crime. The cost of living is moderate for the Gulf region.
The dramatic landscapes from mountains to desert and traditional culture create distinctive appeal.
Corporate tax rate stands at 15%. No personal income tax exists. No VAT currently applies (though planned). The tax environment is favorable.
The Omani rial is pegged to the US dollar. Vision 2040 drives economic diversification from oil dependence. Free zones offer additional incentives.
Company registration through the Ministry of Commerce requires various approvals. LLCs are common, with 100% foreign ownership now permitted in many sectors following reforms. Some activities still require local partners.
Company formation takes approximately 2-4 weeks. Minimum capital varies by activity. Annual compliance includes filing returns.
Oman has begun exploring digital asset regulation but comprehensive crypto license frameworks are not established. The Central Bank has issued statements without creating clear licensing pathways.
Gambling is prohibited under Omani law consistent with Islamic principles. No gambling license opportunities exist.
The relatively small market limits purely domestic opportunities. Traditional culture requires respectful navigation. Economic transformation creates both opportunity and uncertainty.
Banking access is available through Omani and international banks. Professional services are developing.
Oman suits Gulf regional operations, logistics, and businesses valuing stability with Gulf positioning for their business setup.
Local: LLC
Local: SAOC/SAOG
Local: Branch
| Corporate Tax Rate | 15% |
| Personal Income Tax Rate | 0% |
| VAT / Sales Tax | 5% |
| Capital Gains Tax | 15% |
| Withholding Tax | 10% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | MEDIUM |
| Currency Controls | NONE |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant requirements under AML Law RD 30/2016 |
| Business Plan Required | Business plan and detailed activity description required for VASP registration |
| Personnel Required | AML/CFT compliance personnel, designated liaison officer required |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | FSA VASP register - not publicly accessible, maintained by Financial Services Authority |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Financial Services Authority (FSA, formerly CMA) |
| Licensing Fee | $0 |
| Licensing Fee Details | VASP registration currently required under Decision E/35/2023. Comprehensive licensing framework under development. Registration fees to be determined once full regulatory framework is issued. |
| Permitted Business Models | Exchange services, custody, transfer services |
| Permitted Activities | Exchange between virtual assets and fiat currencies, exchange between virtual assets, virtual asset transfer, safekeeping and administration of virtual assets |
| Restricted Activities | Privacy coins and virtual assets that conceal originator identity or transaction nature are prohibited |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
N/A - No gambling license available. All forms of gambling are prohibited under Islamic law and the Oman Penal Code (Royal Decree 7/2018). Article 17 of the Cyber Crime Law also prohibits online gambling.
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $10,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant under AML Law RD 30/2016 |
| Business Plan Required | Comprehensive business plan required with financial projections and risk assessment |
| Personnel Required | CEO, CFO, Compliance Officer, AML Officer, qualified board members with relevant experience |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required for licensed financial institutions |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | No |
| Registry Public | Yes |
| Registry Access | Central Bank of Oman maintains public list of licensed banks and financial institutions at cbo.gov.om |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank of Oman (CBO) under Banking Law RD 2/2025 |
| Licensing Fee | $50,000 |
| Licensing Fee Details | Digital Bank Category 1: OMR 30,000,000 minimum capital, Category 2: OMR 10,000,000 minimum capital. PSP license annual fee: OMR 5,000. Traditional bank licensing involves substantial application and ongoing fees determined by CBO. |
| Permitted Business Models | Commercial banking, Islamic banking, Digital banking, Payment Service Provider (PSP), Investment banking |
| Permitted Activities | Deposit taking, lending, payment processing, foreign exchange, electronic money, trade finance |
| Restricted Activities | Banking activities without CBO license strictly prohibited with penalties up to OMR 600 per day plus imprisonment |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |