Foreign Company Branch in Oman: When It Is Allowed and How to Register

A foreign company branch is the registration of an overseas company in Oman's commercial register without creating a new legal entity. It is only allowed when the foreign company has a signed contract with an Omani government or quasi-government body (or a project declared of national economic interest), and it normally lasts only as long as that contract.

What is a foreign company branch?

A branch lets the parent company perform its Omani contract under its own name. It has its own CR number, can employ staff and open a bank account, but legally it remains part of the parent. Branch registration was previously based on the Foreign Business and Investment Law (Royal Decree 102/94); that law was repealed when the Foreign Capital Investment Law (Royal Decree 50/2019) came into force in January 2020, and branches are now handled under the current framework.

Who can register a branch?

• One foreign company (the investor)
• That holds a signed contract with an Omani government entity, or a project approved as being of national economic interest

GCC companies may have additional options to register branches under Gulf investment rules; check eligibility before filing.

Capital and liability

Required documents

• Commercial registration certificate of the foreign company
• Articles of association of the foreign company
• Sample of authorised signatures
• Letter from the head office requesting the branch registration and appointing the branch manager
• Copy of the contract with the Omani government entity
• Authorised Signatories Form for each signatory

All foreign documents must be legalised or apostilled and translated into Arabic.

Registration steps

1. Collect and legalise the parent company documents.
2. Apply on the Oman Business Platform for a foreign company branch, attaching the government contract.
3. Appoint the branch manager and signatories.
4. Pay the fees and receive the branch CR.
5. Register with the Chamber of Commerce, obtain the municipality licence, open a bank account and register with the Ministry of Labour and Tax Authority.

Timeline and costs

Timing depends mostly on how quickly the parent's legalised documents are ready and on the contracting entity's confirmation; plan for several weeks. Cost components include CR and chamber fees, legalisation and translation, office lease, municipality licence and visa costs. The branch's profits are subject to Omani corporate income tax at 15% as a permanent establishment.

Pros and cons

Advantages

• No new company or local shareholder needed
• Performs the contract under the parent's name and track record
• Parent's balance sheet supports bids and guarantees

Disadvantages

• Only available for government-related contracts
• Ends with the contract
• Parent company exposed to unlimited liability
• Cannot take on unrelated private-sector work

Compare with alternatives

• Sole Proprietor Company (SPC) — a 100%-owned subsidiary with limited liability and no restriction to government work.
• Commercial Representative Office — for promotion and market research only; no contracts or sales.
• Limited Liability Company (LLC) — for a joint venture with local or foreign partners.

See the full overview on types of companies in Oman.

Does it help with residency?

The branch can sponsor work visas for its staff. It does not give the parent's owners investor residence. See work permits in Oman.

Who is a branch best for?

• International contractors and consultants that have won a tender from a ministry, government authority or state-owned company.
• Engineering, oil and gas, and infrastructure firms delivering a defined project.
• Companies whose contract requires the foreign entity itself, with its balance sheet and references, to be the contracting party.

If you plan to stay in Oman after the contract or to work for private clients as well, set up a subsidiary from the start — usually an SPC. A subsidiary can bid for future work and keeps the parent's other assets protected.

What to check before applying

• The contract is signed (a letter of award may not be enough) and names the foreign company exactly as registered abroad.
• The contracting entity is a government or quasi-government body.
• Parent documents are recent, legalised or apostilled and translated.
• You know who will be the branch manager in Oman and whether they need a work visa.

Branch vs subsidiary: a quick test

Ask two questions. Is your only Omani client a government body under a signed contract? And will your work in Oman end when that contract ends? If both answers are yes, a branch is a reasonable choice. If either answer is no, a subsidiary gives you more room to grow.

Ongoing obligations

• Keep separate accounts for the branch and file Omani corporate income tax returns.
• Register for VAT if supplies exceed the threshold.
• Renew the CR, chamber membership and municipality licence.
• Register staff with the Ministry of Labour and meet Omanisation targets for the sector.
• Cancel the registration when the contract ends, after settling tax and labour obligations.

Relevant laws

• Foreign Capital Investment Law — Royal Decree 50/2019 (replaced Royal Decree 102/94)
• FCIL Executive Regulations — Ministerial Decisions 72/2020 and 306/2022
• Commercial Companies Law — Royal Decree 18/2019
• Commercial Register Law — Royal Decree 3/74; Executive Regulations — Ministerial Decision 121/86
• Commercial Agencies Law — Royal Decree 26/77
• Income Tax Law — Royal Decree 28/2009, as amended