According to Royal Decree No. 18/2019, Article 4, commercial companies operating in Oman must adopt one of the following legal forms. Understanding these options is crucial for entrepreneurs and investors looking to establish their businesses in compliance with Omani law. Different types of commercial companies in Oman are the following :
1. General Partnership
A partnership where partners share management responsibilities and are jointly liable for the company’s debts. This form is suitable for small to medium-sized businesses with mutual trust among partners.
2. Limited Partnership
Consists of at least one general partner with unlimited liability and one or more limited partners whose liability is limited to their capital contribution. Ideal for investors seeking limited liability while actively participating in management.
3. Joint Venture
A contractual agreement between two or more parties to undertake a specific business project collectively. It does not create a separate legal entity but allows collaboration under agreed terms.
4. Joint Stock Company (Public / Closed)
A company with its own legal personality, capable of issuing shares to raise capital. It can be publicly traded or privately held (closed). This structure suits large-scale businesses with significant capital needs.
5. Holding Company
A company established primarily to own and manage other companies’ shares. It does not engage directly in commercial activities but controls subsidiaries.
6. Limited Liability Company (LLC)
A popular choice for small and medium enterprises, LLCs feature limited liability for shareholders and compliance with specific capital and management requirements.
7. One-Person Company
Introduced to facilitate sole entrepreneurs, this form allows a single individual to establish a company with limited liability, combining the benefits of a sole proprietorship and a corporate structure.
Why Choose the Right Company Form?
Selecting the appropriate legal structure depends on your business objectives, liability preferences, and investment scale. Our expert Consultants can guide you through the process of choosing and registering the right type of company in Oman.
Contact Us
Need help establishing your business or understanding the legal requirements? Contact us today for professional guidance and seamless company registration services.
