Limited Partnership in Oman: General and Limited Partners Explained

A limited partnership (sharikat tawsiya) is a company with two classes of partner: at least one general (full) partner who manages the business and is personally liable without limit, and at least one limited partner whose liability stops at the capital they contributed. It suits an active operator teaming up with a passive investor.

How a limited partnership works

The structure is regulated by the Commercial Companies Law (Royal Decree 18/2019). The general partner runs day-to-day operations and signs on behalf of the partnership. The limited partner provides capital, shares in profits, and is protected from the business's debts beyond their contribution — as long as they stay out of management.

On the Oman Business Platform:

• there must be at least one full partner and one limited partner;
• companies can only join as limited partners;
• limited partners cannot be authorised signatories.

Who can be a partner?

• Omani individuals (general or limited partners)
• GCC and US nationals
• Other foreign individuals, subject to an investment licence
• Omani and foreign companies — as limited partners only

When foreign investment rules apply

The same triggers as for other partnerships apply: a foreign partner who is not a GCC or US national, or a combination of partners from more than one privileged group (GCC, US, Omani) at the same time. The partnership then needs a project description and an investment licence under Article 8 of the FCIL Executive Regulations.

Partners, capital and liability

There is no legal minimum capital, but each partner's contribution must be recorded in the partnership contract.

Required documents

• Passport copies of foreign partners and signatories
• No-objection letter from the sponsor for partners resident in Oman
• Guardian consent for underage Omani partners
• Board minutes for corporate limited partners (Omani or foreign)
• For foreign companies: registration certificate and articles of association, legalised and translated
• Authorised Signatories Form for each general partner who signs
• Project description where foreign investment rules apply

Registration steps

1. Choose activities and the "Limited Partnership" form on the Oman Business Platform.
2. Reserve a trade name.
3. Enter general and limited partners and their contributions.
4. Obtain the investment licence where required.
5. Approve the partnership contract and pay the fees.
6. Receive the CR; complete Chamber of Commerce membership and the municipality licence.

Timeline and costs

Expect a few working days for an all-Omani partnership with a standard activity, longer if an investment licence or sector approval is needed. MOCIIP quotes government fees of about OMR 50–150 for a standard company and total mandatory start-up costs of roughly OMR 200–300 for a small company (December 2025), before rent and other expenses.

Pros and cons

Advantages

• Lets passive investors contribute capital with limited risk
• Clear split between operator and investor
• No minimum capital

Disadvantages

• The general partner carries unlimited personal liability
• Limited partners have no management or signing role
• Less familiar to foreign banks and clients than an LLC

Compare with alternatives

• Joint Partnership — all partners have unlimited liability.
• Limited Liability Company (LLC) — all partners protected; usually the better choice for mixed Omani–foreign ownership.

Compare all 12 forms on types of companies in Oman.

Does it help with residency?

No direct link: the CR and the investor residence permit are separate procedures. See company registration and residency.

Who is a limited partnership best for?

• An Omani operator who wants capital from a relative or investor without giving them management control.
• A company investor that wants to back an individual's business with its risk capped — companies can only join as limited partners.
• Family arrangements where one member runs the shop and others contribute money.

For most foreign investors, a Limited Liability Company is simpler, because no one has to accept unlimited personal liability.

What the partnership contract should cover

• Each partner's class (general or limited) and contribution
• Profit and loss sharing
• Who manages and signs (general partners only)
• What happens if a general partner leaves, dies or becomes incapable
• Conditions for transferring shares and admitting new partners

Clear exit rules matter more here than in an LLC, because the business depends on the general partner personally.

Ongoing obligations after registration

• Renew the CR, chamber membership and municipality licence each year.
• File corporate income tax returns (15%, or 3% if the small business conditions are met) and register for VAT above OMR 38,500 in annual supplies.
• Register with the Ministry of Labour before hiring and enrol Omani staff in social insurance.
• Where foreign investment rules apply, hire at least one Omani within a year.

Relevant laws

• 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
• Provisions regulating Gulf investments — Royal Decree 57/93
• Foreign Capital Investment Law — Royal Decree 50/2019
• FCIL Executive Regulations — Ministerial Decisions 72/2020 and 306/2022