admin's blog
Prohibited Business Activities under Foreign Investment
The Oman Ministry of Commerce, Industry and Investment Promotion (MOCIIP) Ministerial Decision No. 209/2020 (2020 MD) list of activities prohibited to foreign investors has been updated by Ministerial Decision No. 364/2023 (New MD). The New MD amends the 2020 MD by removing two activities from the list of prohibited activities specialised rehabilitation centres and rehabilitation centres and expanding the list of prohibited activities.
We set out below a consolidated list of the prohibited activities. Most of these commercial activities are unlikely to be of interest to foreign investors, but there are a few surprises for foreign investors to be alert to:
- Manufacture of Omani halwa (Omani dessert)
- Tailoring of Arab men wearing apparel
- Tailoring of non-Arab men wearing apparel
- Tailoring of Arab and non-Arab ladies wearing apparel
- Tailoring of sports clothing
- Tailoring of military uniform
- Manufacture of Omani kimma (Omani cap)
- Manufacture of women's abaya (gown)
- Manufacture of Omani khanjar (traditional dagger)
- Transport and sale of drinking water
- Motor vehicle electrical repair and recharging of batteries
- Repairing and cleaning motor vehicle radiators
- Repairing punctured tyres and metal wheels
- Wheel balance
- Motor vehicle service stations
- Replacement of motor vehicle oils
- Repairing car air-conditioner
- Repairing motor vehicle exhaust pipe
- Car cleaning and polishing
- Wholesale of fruits and vegetables
- Wholesale of cooking gas
- Liquefied petrol gas filling stations
- Retail sale of fresh fruit, vegetables and dates in specialised stores
- Retail sale of honey in specialised stores
- Motor vehicle fuel stations
- Diesel fuel stations
- Retail sale of telephones and their accessories in specialised stores
- Retail sale of mobile telephones and their accessories in specialised stores
- Retail sale of souvenirs, paintings and gifts in specialised stores
- Retail sale of flowers and natural plants in specialised stores
- Retail sale of pottery and handicrafts in specialised stores
- Retail sale of cooking gas in specialised stores
- Retail sale of silverware and gifts in specialised stores
- Retail sale in specialised stores of cards of telecommunications services licensed in the Sultanate
- Retail sale of traditional weapons in specialised stores
- Retail sale of animal feed in specialised stores
- Retail sale of bags in specialised stores
- Retail sale of ceremony requirements in specialised stores
- Retail sale of fireworks in specialised stores
- Retail sale of Omani khanjar (traditional dagger) in specialised stores
- Retail sale of empty gas cylinders in specialised stores
- Retail sale of wedding cards in specialised stores
- Retail sale of handicraft products in specialised stores
- Retail sale of beekeeping supplies in specialised stores
- Pilgrim and umra performers’ transport
- Road transport by trucks of cooking gas cylinders
- Loading and unloading of goods
- Customs clearance offices
- Valuation of cancelled vehicles
- Insurance commission agent
- Real estate brokerage (auctioneer offices)
- Manpower recruitment offices
- Employment offices
- General cleaning of buildings
- Photocopying and typing services
- Transactions clearance offices
- Making and installation of neon signboards
- Managing and operating fuel stations
- Driving schools
- Elderly people care centres
- Orphanages
- Other library and archives activities
- Washing all kinds of clothes and textiles, except what is carried out in tourist establishments
- Ironing of clothes, except what is carried out in tourist establishments
- Laundry and steam ironing (dry cleaning), except what is carried out in tourist establishments
- Hair cutting, styling and shaving for men, except what is carried out in tourist establishments
- Hairdressing and cosmetic treatment for women, except what is carried out in tourist establishments
- Hair cutting and styling for children, except what is carried out in tourist establishments
- Operation of poultry hatcheries
- Beekeeping and production of honey and beeswax
- Marine fishing
- Slaughtering and preparing poultry, rabbits and birds
- Printing using photocopier machines, computer printers, embossers etc.
- Transport estate owners associations
- Pets care service and sale of non-potable water
- Renting of cranes with operator
- Renting of construction machinery and other equipment operated by a worker
- Renting of construction or demolition equipment operated by a worker
- Wholesale of livestock
- Wholesale of fish and sea creatures
- Wholesale of fish products
- Retail sale in specialised stores of meat and meat products
- Retail sale in specialised stores of fish and other seafoods
- Retail sale in specialised stores of Omani halwa (Omani dessert)
- Retail sale in specialised stores of poultry (slaughtered)
- Retail sale in specialised stores of natural herbs
- Retail sale in specialised stores of medical herbs
- Retail sale in specialised stores of birds, pets and ornamental fish and their accessories
- Vehicle towing and recovery service
- Buying, selling and dividing land
- Renting and operating of self-owned or leased real estate (residential and non-residential)
- Operating of buildings (self-owned or leased)
- Appraisal services for real estate
- Building management (based on a fee or contract)
- Management of real estate.
Prohibited Business Activities
We set out below a consolidated list of the prohibited activities. Most of these commercial activities are unlikely to be of interest to foreign investors, but there are a few surprises for foreign investors to be alert to:
Manufacture of Omani halwa (Omani dessert)
Tailoring of Arab men wearing apparel
Tailoring of non-Arab men wearing apparel
Tailoring of Arab and non-Arab ladies wearing apparel
Tailoring of sports clothing
Tailoring of military uniform
Manufacture of Omani kimma (Omani cap)
Manufacture of women's abaya (gown)
Manufacture of Omani khanjar (traditional dagger)
Transport and sale of drinking water
Motor vehicle electrical repair and recharging of batteries
Repairing and cleaning motor vehicle radiators
Repairing punctured tyres and metal wheels
Wheel balance
Motor vehicle service stations
Replacement of motor vehicle oils
Repairing car air-conditioner
Repairing motor vehicle exhaust pipe
Car cleaning and polishing
Wholesale of fruits and vegetables
Wholesale of cooking gas
Liquefied petrol gas filling stations
Retail sale of fresh fruit, vegetables and dates in specialised stores
Retail sale of honey in specialised stores
Motor vehicle fuel stations
Diesel fuel stations
Retail sale of telephones and their accessories in specialised stores
Retail sale of mobile telephones and their accessories in specialised stores
Retail sale of souvenirs, paintings and gifts in specialised stores
Retail sale of flowers and natural plants in specialised stores
Retail sale of pottery and handicrafts in specialised stores
Retail sale of cooking gas in specialised stores
Retail sale of silverware and gifts in specialised stores
Retail sale in specialised stores of cards of telecommunications services licensed in the Sultanate
Retail sale of traditional weapons in specialised stores
Retail sale of animal feed in specialised stores
Retail sale of bags in specialised stores
Retail sale of ceremony requirements in specialised stores
Retail sale of fireworks in specialised stores
Retail sale of Omani khanjar (traditional dagger) in specialised stores
Retail sale of empty gas cylinders in specialised stores
Retail sale of wedding cards in specialised stores
Retail sale of handicraft products in specialised stores
Retail sale of beekeeping supplies in specialised stores
Pilgrim and Umra performers’ transport
Road transport by trucks of cooking gas cylinders
Loading and unloading of goods
Customs clearance offices
Valuation of cancelled vehicles
Insurance commission agent
Real estate brokerage (auctioneer offices)
Manpower recruitment offices
Employment offices
General cleaning of buildings
Photocopying and typing services
Transactions clearance offices
Making and installation of neon signboards
Managing and operating fuel stations
Driving schools
Elderly people care centres
Orphanages
Other library and archives activities
Washing all kinds of clothes and textiles, except what is carried out in tourist establishments
Ironing of clothes, except what is carried out in tourist establishments
Laundry and steam ironing (dry cleaning), except what is carried out in tourist establishments
Hair cutting, styling and shaving for men, except what is carried out in tourist establishments
Hairdressing and cosmetic treatment for women, except what is carried out in tourist establishments
Hair cutting and styling for children, except what is carried out in tourist establishments
Operation of poultry hatcheries
Beekeeping and production of honey and beeswax
Marine fishing
Slaughtering and preparing poultry, rabbits and birds
Printing using photocopier machines, computer printers, embossers etc.
Transport and sale of non-potable water
Renting of cranes with operator
Renting of construction machinery and other equipment operated by a worker
Renting of construction or demolition equipment operated by a worker
Wholesale of livestock
Wholesale of fish and sea creatures
Wholesale of fish products
Retail sale in specialised stores of meat and meat products
Retail sale in specialised stores of fish and other seafoods
Retail sale in specialised stores of Omani halwa (Omani dessert)
Retail sale in specialised stores of poultry (slaughtered)
Retail sale in specialised stores of natural herbs
Retail sale in specialised stores of medical herbs
Retail sale in specialised stores of birds, pets and ornamental fish and their accessories
Vehicle towing and recovery service
Buying, selling and dividing land
Renting and operating of self-owned or leased real estate (residential and non-residential)
Operating of buildings (self-owned or leased)
Appraisal services for real estate
Building management (based on a fee or contract)
Management of real estate owners associations
Pets care service
Company Grades
All types of companies, whether SPC or LLC, are categorized into a specific grade in Oman based on capital investment and the visa quota for workers.
BRANCH OFFICE
Foreign Company Representative Office
A representative office of a foreign company is distinct from a Branch Office in that it is solely authorized to promote the activities of its parent company. If the parent company is involved in the sale and/or production of specific products and establishes a representative office in Oman, the office is restricted to promoting and marketing those products, and facilitating contracts in Oman, but cannot engage in direct sales or production. It's essential to be aware that, in addition to these limitations, representative offices face restrictions, such as being ineligible to secure credit facilities or submit offers.
Currently, we don't provide this service!
Limited Liability Company (LLC)
Limited Liability Company (LLC) stands out as the preferred choice for foreign business formation in Oman. Until January 2020, foreign investors were restricted to owning 70%, with an Omani partner holding the remaining 30%. However, the enactment of the Foreign Capital Investment Law (FCIL) through Royal Decree No: 50/2019 in January 2020 granted foreign investors 100% ownership in many mainland Oman industries.
Sole Proprietorship Company
A Sole Proprietorship Company is a straightforward business structure where an individual trades under their own name, holding a personal liability for business obligations without a separate legal entity. This form is commonly called an 'establishment,' and its owner assumes full liability for the business.
Setting Up and Structure of a Sole Proprietorship Company in Oman:
To establish a Sole Proprietorship Company, one applies the necessary documents to the Ministry of Commerce and Industry, represented by the Chamber of Commerce and the Municipality. The Ministry of Commerce and Industry issues the primary trade license.
Key Features:
- Single-person ownership
- No restrictions on initiation or closure
- The owner maintains complete control
- Lower formation and compliance costs
- Unlimited liability borne by the owner
- Profits and losses are borne by the owner
- No special legislation
Government Liaison Officer (GLO) Requirement: Each Sole Proprietorship Company needs a local Omani to serve as the company’s Government Liaison Officer (GLO). The GLO has No Equity or liability for the business, and they cannot represent the Branch Office or partake in its management.
Advantages of Company Certification LLC approved GLO service provider:
- Utilize our experience for efficient paperwork processing, including visas, licenses, labor quotas, translation services, and assistance with corporate bank account openings.
- We have a fixed fee structure.
- Full management team available 24/7.
- Suitable for entrepreneurs, SMEs, and MNCs entering the Oman market.
- Honest answers, transparency, reliability, and realistic timeframes keep you fully informed at all times.
Oman Company Types
Companies in Oman can adopt different legal forms, including Sole Proprietorship Company, Limited Liability Company (LLC), Branch Offices, Representative Office, Free Zones, and Commercial Agent (Exclusive Distributor). An LLC is the prevalent choice for foreign investors, often the only option for various business activities. As of January 2020, many company types can be fully owned by foreign investors due to a legislative update.
- Sole proprietorship Company
- Limited Liability Company (LLC)
- Branch Office
- Representative Office
- Joint Stock Company
- Commercial Agent
- Free Zones
Personal Tax
- No personal income tax in Oman