TaxSavvyOM

Choosing between LLC and branch

Should we open a branch or an LLC in Oman?

The situation

The Commercial Companies Law governs company forms; both are taxed at 15 percent.

The law

  • Commercial Companies Law, Royal Decree 18/2019: Company forms, auditors, dissolution and liquidation
  • Income Tax Law, Royal Decree 28/2009: 15 percent corporate income tax on taxable income; 55 percent on petroleum sales

What it means for you

An LLC is a separate legal person; a branch is part of its foreign parent, which carries liability. Both are taxed at 15 percent and need audited accounts for the return. Think about contract counterparties, liability and exit cost when choosing.

What to do

  1. Compare forms.
  2. Check contracts' needs.
  3. Decide.
  4. Register.

We can do this for youCompany setup on Invest Easy with tax card registration: OMR 900

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