A commercial company is defined as a legal entity created by two or more people who agree to mutually participate in a new business venture for profit by providing capital in the form of goods or services, labour, or both, with the intention of splitting any profits or losses from the venture; with exception of one SPC “sole proprietorship company” which can be owned by only one person.
Pursuant to Royal Decree No. 18/2019 issuing the Commercial Companies Law any of the bellow form can be chosen at time of the establishment of a new entity.
Limited Partnership: A company founded by investors who split earnings and losses and contribute to the shea capital. At least One partner must have unlimited liability.
General Partnership: a partnership in which all partners bear unlimited liability.
Joint Venture Company: A collaborative venture between two or more parties for a specific project or purpose, often involving shared investments.
Joint Stock Company (Public/Closed): A company with capital divided into shares, which can be publicly traded in the case of a public joint stock company.
Holding Company: This type of business focuses on holding and overseeing investments in other businesses.
Limited Liability Company: This type of business offers its members limited responsibility by fusing aspects of a corporation and a partnership.
The company who failed to adopt any of the above form shall be considered null and void. A person who has dealt and acted for or on behalf of Company shall be personally libel for the obligations arising out of their actions. The company’s capital can be contributed in the form of cash, movable or immovable assets, shares, moral rights, services, or work, as specified under the Omani laws. The incorporation documents shall specify the value of all contributions in cash to the company’s capital. In addition to the aforementioned company types, Omani laws and regulations allows for the formation of other business entities such as agency, branch of foreign company, commercial representative office.
