Starting a business in Oman is becoming one of the smartest moves for foreign investors. Free zones like Sohar, Salalah, Duqm SEZ, and Al Mazunah offer tax exemptions, strategic global access, 100% foreign ownership, and modern infrastructure. However, learning how to open company in Oman free zone the right way saves you money, avoids delays, and speeds up your approvals.
This upgraded guide explains every major step, cost, requirement, and legal detail you need.
11 Proven Steps: How to Open Company in Oman Free Zone
Below is the exact process used by real investors setting up companies in 2024–2025.
Step 1: Choose the Right Free Zone for Your Business
The first and most important step in how to open company in Oman free zone is selecting where to register. The four major zones include:
Sohar Free Zone
Best for: logistics, metals, manufacturing, petrochemicals, industrial operations.
Salalah Free Zone
Best for: pharmaceuticals, shipping, food processing, waste management.
Duqm Special Economic Zone (SEZAD)
Best for: oil & gas, shipyards, refineries, petrochemicals, mega industrial projects.
Al Mazunah Free Zone
Best for: trading, import/export, re-export, distribution near Yemen border.
Each zone has unique licensing rules, fees, and industry focus.
Step 2: Select a Business Activity
Your business activity determines:
✔ license type
✔ registration fees
✔ office requirement
✔ approvals needed
Popular activities include:
manufacturing, consulting, trading, logistics, warehousing, IT services, e-commerce, and industrial projects.
Mention your activity clearly — this is key for free zone approvals.
Step 3: Choose Your Company Structure
Free zones offer several structures for investors:
- Free Zone Establishment (FZE) – 100% foreign-owned, single shareholder
- Free Zone Company (FZC) – two or more shareholders
- Branch of Foreign Company – ideal for global companies expanding
- LLC in Free Zone – used for industrial and manufacturing setups
- Joint Stock Company – used for large-scale or public projects
Choose based on budget, ownership, and future expansion plans.
Step 4: Reserve Your Company Name (1–3 Days)
The free zone authority must approve your business name.
Include 2–3 name options and avoid restricted words.
This step is mandatory in how to open company in Oman free zone registration.
Step 5: Submit Initial Application & Business Plan
The authority reviews:
✔ shareholder details
✔ company structure
✔ business plan
✔ proposed activity
✔ capital details
Approval time: 2–5 working days.
Step 6: Prepare All Required Documents
This part often causes delays — but not if you prepare the correct checklist.
Complete Documents Checklist
- Passport copies of shareholders
- Passport-size photos
- Business plan
- Proof of address
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Board resolution (if corporate shareholder)
- Certificate of Incorporation
- Power of attorney (if represented by a consultant)
- No Objection Certificate (for residents)
All documents must be clear, valid, and in some cases translated into Arabic.
Step 7: Sign the Lease Agreement (Office / Warehouse)
Free zones offer:
- virtual offices
- flexi desks
- private offices
- warehouses
- industrial land
Signing your lease officially secures your company location.
Step 8: Pay the Registration & License Fees
Once fees are paid, the free zone issues:
✔ company license
✔ certificate of registration
✔ lease contract
This is the core step in how to open company in Oman free zone.
Step 9: Open a Corporate Bank Account
Popular banks used by investors:
- Bank Muscat
- Sohar International
- Bank Dhofar
- Bank Nizwa
- HSBC Oman
Most require:
✔ company documents
✔ business profile
✔ KYC forms
✔ shareholder ID copies
Approval time: 7–21 days.
Step 10: Apply for Visas (Investor + Employees)
Visa costs in free zones average:
- OMR 300–600 per visa
- Medical & ID card additional
Free zones allow easy hiring of foreign employees — one major benefit of Oman business setup.
Step 11: Begin Operations and Maintain Compliance
After licensing and visas, you can:
✔ import goods
✔ hire staff
✔ invoice clients
✔ start operations
✔ open trade routes
To stay compliant:
- renew license yearly
- maintain lease
- renew visas
- follow free zone rules
What are Benefits of Oman Free Zone Company Formation?
1. 100% Foreign Ownership
No Omani partner required — complete control.
2. Full Repatriation of Profits
Send all capital and profits abroad freely.
3. 0% Tax Advantages
Many free zones offer:
✔ 0% corporate tax (for a defined period)
✔ 0% import/export duty
✔ 0% personal income tax
4. Modern Infrastructure
Deep-sea ports, airports, highways, industrial zones.
5. Strategic Global Access
Oman connects Asia, Africa, Europe, and GCC markets.
6. Fast Licensing Process
Digital systems allow faster approvals.
7. Flexible Hiring Rules
Easy recruitment of international workforce.
These benefits are the backbone of how to open company in Oman free zone.
Oman Free Zone Setup Costs (2025 Updated Table)
| Cost Type | Sohar | Salalah | Duqm | Al Mazunah |
|---|---|---|---|---|
| Registration Fee | OMR 1,500–3,000 | OMR 1,200–2,800 | OMR 1,800–3,500 | OMR 1,000–1,800 |
| License Fee | OMR 500–2,500 | OMR 400–1,500 | OMR 800–2,500 | OMR 400–900 |
| Office Rent | OMR 900–7,000 | OMR 600–5,000 | OMR 1,000–10,000 | OMR 150–1,500 |
| Warehouse | From OMR 3,000+ | From OMR 2,800+ | From OMR 3,500+ | From OMR 1,800+ |
| Investor Visa | OMR 300–600 | OMR 300–600 | OMR 300–600 | OMR 300–600 |
Average total cost: OMR 2,500–7,500 depending on zone & office size.
How Long Does Oman Free Zone Company Formation Take?
| Step | Time Required |
|---|---|
| Name reservation | 1–3 days |
| Initial approval | 2–5 days |
| Document preparation | 2–7 days |
| License issuance | 3–14 days |
| Bank account opening | 7–21 days |
| Investor visa | 7–21 days |
Total estimated time: 2–6 weeks
Common FAQs About How to Open Company in Oman Free Zone
1. Can foreigners fully own a company in Oman free zones?
Yes, free zones allow 100% foreign ownership.
2. What is the minimum capital requirement?
Most free zones have no minimum capital.
3. How long does the setup take?
Usually 2–6 weeks depending on document readiness.
4. Do I need to visit Oman?
Not always — many free zones allow remote setup.
5. Which free zone is cheapest?
Al Mazunah Free Zone usually offers the lowest fees.
6. Which free zone is best for logistics?
Sohar Free Zone is the top choice.
7. What industries are allowed?
Trading, logistics, manufacturing, consulting, IT, food processing, and more.
8. Do I need a local sponsor?
No sponsor or partner is required.
9. Can I open a bank account remotely?
Some banks allow it; others require in-person verification.
10. Are taxes zero in Oman free zones?
Corporate taxes are 0% for certain periods (varies by zone).
Conclusion
Learning how to open company in Oman free zone gives you a direct path to one of the Middle East’s most stable, strategically located, and business-friendly environments. With 100% foreign ownership, zero taxes, strong infrastructure, and simplified registration procedures, Oman free zones are ideal for startups, SMEs, and global companies.
By following the 11 proven steps — choosing the right free zone, preparing documents correctly, paying the required fees, opening a bank account, and applying for visas — you can start your business smoothly and confidently.
Setting up a business in Oman requires careful preparation, complete documentation, and compliance with OPAZ regulations. Any mistakes can delay your license — which is why partnering with a trusted audit and business consulting firm in Muscat, Oman is essential.
