Legal and Regulatory Frameworks for Startups
The government of the Sultanate of Oman aims to create an ecosystem that supports the creation and growth of startup companies. In recent years it has made a range of changes to business legislation and government services to help achieve this goal.
This module covers the regulations and legislation that you should consider before setting up your company.
Since 2019, the government has made a range of legislative changes to support startup growth:
1. Royal Decree 18/2019: Commercial Companies Law
This law allows the possibility of forming a single member limited liability company (LLC) and clarify a number of issues in terms of transparency, including how the rule for liability of authorised managers of LLCs will mirror that of the director of the public companies.
2. Royal Decree 50/2019: Law for Foreign Investment
Under this decree, all procedures and permits are approved by the Investments Services Centre of the Ministry of Commerce and Industry. Projects and companies are able to allocate 100% of the foreign investment ownership in the free zones listed below.
3. Ministerial Decision 37/2021 issued by the Ministry of Commerce, Industry, and Investment Promotion
An amended provision for regulation for organising the trading names and improvement of the “Invest Easy” portal, which aim to facilitate the process of administrative work without having to visit any site physically.
4. Royal Decree 61/2020: Establishment of Oman Investment Authority
The government merged the State General Reserve Fund and Oman Investment Fund. This resulted in the creation of Innovation Development Oman (IDO), which invests in startups on behalf of OIA.