Oman: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

Setting Up a Company

Limited liability company: Number of partners: Minimum: Two partners, Maximum: 40 shareholders
One of the two partners must be citizen of Oman, a GCC member state or the USA and hold at least 30% of shares.
No share restrictions apply when all partners are citizen of Oman, a GCC member state or the USA
Capital (max/min): Minimum: OMR 150,000 (for LLCs with foreign participation)
Minimum: OMR 20,000 (for LLCs that are 100% owned by Omani and GCC nationals, and US citizens)
Shareholders and liability: Liability for each shareholder is limited to the portion of their own capital contributions
Free zone company: Number of partners: Minimum: One shareholder, one director
Capital (max/min): No minimum capital requirement
Shareholders and liability: Liability for each shareholder is limited to the portion of their own capital contributions
Joint stock company: Number of partners: Minimum: Three shareholders
A board of directors is also required
Capital (max/min): Minimum capital: OMD 500,000 (for privately held joint stock companies (SAOC)
Minimum capital: OMD 2 million (for publicly held joint stock companies (SAOG)
At least half of issued capital to be paid-up on subscription
Shareholders and liability: Liability for each shareholder is limited to the portion of their own capital contributions
Partnership (General or limited): Number of partners: Minimum: Two partners (two full partners or one general and one limited partner)
Capital (max/min): Not applicable
Shareholders and liability: Full liability for general partner(s)
Liability for limited partner(s) is limited to the portion of their own capital contributions

The Competent Organisation: Directorate of Investors Services is a one stop shop that issues the commercial license required to perform any commercial activity. The application process is online; however, investors can also apply directly at the Ministry of Commerce and Industry.

Setting Up a Company	Oman	Middle East & North Africa
Procedures (number)	4.0	6.3
Time (days)	4.3	19.5

Source: Doing Business.

Business Setup Procedures: Consult Doing Business website (World Bank), to know about procedures to start a Business in Oman.

The Active Population in Figures

	2018	2019	2020
Labour Force	2,590,634	2,680,161	2,678,187

Source: International Labour Organization, ILOSTAT database

	2017	2018	2019
Total activity rate	72.47%	70.86%	71.36%
Men activity rate	88.09%	84.49%	85.08%
Women activity rate	34.77%	37.68%	37.82%

Source: International Labour Organization, ILOSTAT database

Working Conditions

Legal Weekly Duration: 9 hours a day, 45 hours a week (maximum). The maximum work hours are reduced to 6 hours a day, 30 hours a week for Muslim employees during Ramadan.
Retirement Age: 60 years.
Working Contracts: All private sector employees are required to have an employment contract either for a limited or unlimited period of time.
Employment contracts must be in Arabic and issued in two copies. Contracts must include:
1- Name of the employer and the establishment and address of the workplace.
2- Name of the worker, their date of birth, qualification, job or occupation, place of residence and nationality.
3- The nature and type of work and duration of the contract.
4- The basic salary and any allowances, privileges or remunerations to which the worker is entitled under the current terms of employment, and the method and time of payment of the agreed wage.
5- The reasonable period of notice which shall be given by anyone of the parties who intends to revoke the contract, provided that the period of notice which and employer gives to a worker shall not be less than the period prescribed by this law.
6- Any other particulars to be specified by the law.
Contracts must also include an annex in the form of an undertaking from the employee, which includes the following:
1- That they will abide by the terms and conditions of work as provided in the contract.
2- To respect Islamic religion, the laws, customs and social traditions of the country.
3- Not to engage in any activity which is detrimental to the country's security.
Labour Laws: Consult Doing Business website (World Bank), to obtain a summary of the labour regulations that apply to local entreprises.

Cost of Labour

Minimum Wage: OMR 325 (OMR 225 minimum basic salary, OMR 100 minimum allowance) (Omani Ministry of Manpower)
Average Wage: OMR 820 (PayLab Survey)
Social Contributions: Social Security Contributions Paid By Employers: 10.5%
Social Security Contributions Paid By Employees: The employee pays a contribution of 7% of salary.

Social Partners

Social Dialogue and Involvement of Social Partners: Trade unions were illegal in Oman until 2006. The country now has 242 trade unions, half of which are located in Muscat. Trade unions operate under the umbrella of the General Foundation of Oman Trade Unions (GFOTU). Unionisation is not allowed in the public sector. The GFOTU negotiates with the Ministry of Manpower on behalf of all trade unions. In 2017, The GFOTU helped more than 5,000 workers that were previously employed in the oil sector find new jobs and receive compensation in the aftermath of the oil crisis.
Labour Unions: General Federation of Oman Trade Unions
Unionisation Rate: The General Foundation of Oman Trade Unions (GFOTU) does not release any statistics regarding the total number of trade union members. Trade unions are open to expatriate workers; however, very few join during their time in Oman.
Labour Regulation Bodies: Ministry of Manpower

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