How to Start a Public Joint Stock Company in Oman?

May 3, 2025
by office
blog

Establishing a Public Joint Stock Company in Oman is a powerful way for entrepreneurs and investors to tap into the Sultanate’s thriving economy. Oman’s strategic location, business-friendly policies, and growing sectors like logistics, tourism, and manufacturing make it an ideal destination for launching a publicly traded company. A Public Joint Stock Company (PJSC) allows businesses to raise significant capital by issuing shares to the public, fostering growth, credibility, and scalability. However, setting up a PJSC requires careful planning, compliance with Oman’s regulatory framework, and a clear understanding of the process.

This in-depth guide provides a step-by-step roadmap for starting a Public Joint Stock Company in Oman. It covers everything from the definition and types of PJSCs to the registration process, requirements, costs, and benefits. Whether you’re a local entrepreneur or an international investor, this resource equips you with the knowledge to navigate Oman’s corporate landscape confidently.

What is a Public Joint Stock Company?

A Public Joint Stock Company in Oman is a corporate entity that raises capital by issuing shares to the public, which are traded on the Muscat Stock Exchange (MSX). Governed by Oman’s Commercial Companies Law (Royal Decree 18/2019), a PJSC is designed for large-scale businesses seeking public investment to fuel growth. Unlike private companies, PJSCs allow a broad range of investors—retail, institutional, and foreign—to own shares, making them ideal for industries requiring substantial capital, such as banking, real estate, or energy.

Key Characteristics of a PJSC

Public Shareholding: Shares are offered to the public through an Initial Public Offering (IPO) and traded on the MSX.
Limited Liability: Shareholders’ liability is restricted to their investment, safeguarding personal assets.
Regulatory Oversight: PJSCs are regulated by the Capital Market Authority (CMA) and the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP).
Transparency: Companies must publish financial reports, hold annual general meetings (AGMs), and adhere to strict corporate governance standards.

PJSCs are a cornerstone of Oman’s economy, with prominent examples like Bank Muscat and Oman Telecommunications Company (Omantel) demonstrating their potential for growth and investor appeal.

Why Choose a PJSC?

A PJSC structure suits businesses aiming to:

Raise large-scale capital for expansion or innovation.
Enhance credibility through public listing.
Attract diverse investors, including foreign stakeholders.
Align with Oman Vision 2040, which promotes economic diversification and private-sector growth.

Types of Public Joint Stock Companies in Oman

Oman’s Commercial Companies Law outlines different types of PJSCs based on their structure, purpose, and share distribution. Understanding these variations helps entrepreneurs select the right model for their goals.

General Public Joint Stock Company (SAOG)

The General PJSC, or Société Anonyme Omanaise Générale (SAOG), is the most common type, open to all investors. Key features include:

Minimum capital of OMR 2 million.
Shares listed on the Muscat Stock Exchange for public trading.
At least 40% of shares offered to the public via an IPO.
Ideal for large enterprises in sectors like manufacturing, telecom, or hospitality.

Examples include Galfar Engineering & Contracting SAOG and Al Anwar Investments SAOG.

Closed Public Joint Stock Company (SAOC)

A Closed PJSC, or Société Anonyme Omanaise Close (SAOC), limits share trading to a select group of investors, often as a precursor to becoming a fully public SAOG. Characteristics include:

Minimum capital of OMR 500,000.
Shares not immediately listed on the MSX but may be offered to institutional or private investors.
Suitable for companies planning a future IPO or operating in niche sectors.

This type is often used by businesses in transition or those testing the market before going fully public.

Special Purpose PJSCs

These PJSCs are formed for specific projects, such as infrastructure development or public-private partnerships (PPPs). For instance, a PJSC might be established to manage a renewable energy project or a port under Oman’s Vision 2040 initiatives. They require tailored approvals from the MoCIIP and CMA.

Sector-Specific PJSCs

Certain industries, like healthcare or finance, may have unique PJSC structures. For example, a healthcare-focused PJSC could be set up to operate a chain of clinics, requiring approvals from the Ministry of Health. Similarly, expatriate doctors involved in such a venture might need specific permits to comply with regulatory standards.

Each type has distinct capital, governance, and regulatory requirements, which we’ll explore further in the requirements section.

Step-by-Step Process to Register a Public Joint Stock Company in Oman

Registering a Public Joint Stock Company in Oman involves a multi-step process overseen by the MoCIIP, CMA, and MSX. Follow these steps to ensure a smooth setup.

Step 1: Create a Comprehensive Business Plan

A robust business plan is the cornerstone of your PJSC. It should include:

Vision and Objectives: Define your company’s goals, sector, and growth strategy.
Market Analysis: Research Oman’s market trends, competitors, and investor appetite.
Financial Projections: Forecast capital needs, revenue, and profitability for 3–5 years.
Share Structure: Specify the number of shares, their nominal value, and the public offering percentage.

Engage a local business consultant to align your plan with Oman’s regulatory and market expectations. This step typically takes 2–4 weeks.

Step 2: Reserve a Company Name

Choose a unique name that reflects your brand and complies with MoCIIP guidelines:

Include “SAOG” or “SAOC” to denote PJSC status.
Avoid names that are offensive, misleading, or similar to existing companies.
Reserve the name via the MoCIIP’s Invest Easy portal, costing OMR 10–20.

Name approval usually takes 3–5 days.

Step 3: Secure Preliminary Approvals

Submit your business plan and name reservation to the MoCIIP for initial approval. Required documents include:

Draft Articles of Association (AoA) outlining governance, share distribution, and operational rules.
Details of founding shareholders (minimum seven).
Proof of minimum capital commitment.

The MoCIIP typically processes this within 1–2 weeks, provided all documents are complete.

Step 4: Open a Corporate Bank Account

Deposit the minimum capital (OMR 2 million for SAOG, OMR 500,000 for SAOC) into a corporate account with a licensed Omani bank, such as Bank Dhofar or National Bank of Oman. The bank will issue a capital deposit certificate, a key requirement for registration. This step takes 1–2 weeks.

Step 5: Register with the MoCIIP

Complete formal registration through the Invest Easy portal. Submit:

Approved AoA.
Capital deposit certificate.
Identity documents of shareholders (Omani ID or passport for expatriates).
Registration fee (OMR 100–500, based on capital size).

The MoCIIP issues a Commercial Registration (CR) certificate, officially recognizing your PJSC. This process takes 1–3 weeks.

Step 6: Obtain Capital Market Authority (CMA) Approval

Since PJSCs involve public share offerings, the CMA must approve your IPO. Prepare a prospectus detailing:

Company objectives and financial projections.
Share price, subscription period, and allocation strategy.
Risk factors for investors.

Hire a CMA-licensed financial advisor to ensure compliance. CMA approval typically takes 4–8 weeks.

Step 7: Launch the Initial Public Offering (IPO)

With CMA approval, launch your IPO through the Muscat Stock Exchange. Key tasks include:

Announce the IPO in local newspapers and the MSX website.
Open subscriptions for shares (typically 30–60 days).
Allocate shares, ensuring at least 40% (SAOG) or 30% (SAOC) are offered to the public.

Work with an underwriter to manage subscription demand. This step can take 2–3 months.

Step 8: List Shares on the Muscat Stock Exchange

After the IPO, list your shares on the MSX for public trading. This requires:

Final CMA approval.
MSX listing fees (OMR 5,000–10,000 annually).
Compliance with disclosure requirements, such as quarterly financial reports.

Listing typically takes 2–4 weeks.

Step 9: Secure Sector-Specific Licenses

Depending on your industry, obtain additional licenses. For example, a healthcare PJSC requires approval from the Ministry of Health, while a financial PJSC needs Central Bank of Oman approval. Expatriate professionals in healthcare may also need specific permits. This step varies by sector but generally takes 2–6 weeks.

Step 10: Commence Operations

With registration, IPO, and licenses complete, hold an inaugural AGM to:

Appoint a board of directors (minimum five members).
Approve bylaws and strategic plans.
Allocate initial funds for operations.

Ensure ongoing compliance with CMA and MSX regulations to maintain investor confidence. Operations can begin immediately after the AGM.

Learn More: How to Register an SPC Company in Oman

Requirements for Opening a Public Joint Stock Company in Oman

Meeting the regulatory, financial, and operational requirements is essential for establishing a PJSC. Here’s a detailed breakdown.

Legal Requirements

Minimum Shareholders: At least seven founding shareholders, who can be Omani or foreign nationals.
Articles of Association: A comprehensive AoA detailing governance, share structure, and dividend policies.
Commercial Registration: Obtained via the MoCIIP’s Invest Easy portal.
CMA Approval: Mandatory for IPO and share listing.

Capital Requirements

SAOG: Minimum capital of OMR 2 million, with 40% offered to the public.
SAOC: Minimum capital of OMR 500,000, with 30% offered to select investors.
Capital Deposit: Funds must be deposited in a licensed Omani bank before registration.

Governance Requirements

Board of Directors: Minimum five members, with at least one-third independent directors.
Annual General Meetings: Mandatory to discuss financials, dividends, and strategy.
External Auditor: A licensed auditor must review financial statements annually.
Corporate Governance: Adherence to CMA’s Code of Corporate Governance, ensuring transparency and accountability.

Documentation Requirements

Identity documents (Omani ID or passport) for shareholders and directors.
Capital deposit certificate from a licensed bank.
Approved AoA and business plan.
CMA-approved IPO prospectus.
Attested foreign documents (for expatriates), verified by the Omani Embassy.

Industry-Specific Requirements

PJSCs in regulated sectors need additional licenses. For instance, a healthcare PJSC must comply with Ministry of Health standards, while an energy PJSC requires approvals from the Authority for Public Services Regulation.

Foreign Ownership Requirements

Oman allows 100% foreign ownership in PJSCs, following 2020 investment reforms. Expatriates must:

Provide attested business or professional licenses relevant to your industry (e.g., for healthcare professionals).
Obtain work visas if residing in Oman.
Comply with Oman’s labor laws for staffing.

Advantages of Forming a Public Joint Stock Company in Oman

A PJSC offers numerous benefits for businesses and investors, making it an attractive structure in Oman.

Access to Large-Scale Capital

By issuing shares to the public, PJSCs can raise significant funds for expansion, innovation, or debt repayment. This is ideal for capital-intensive sectors like infrastructure, energy, or real estate.

Enhanced Market Credibility

Listing on the Muscat Stock Exchange signals transparency and reliability, attracting institutional investors, partners, and customers. Public companies like Omantel benefit from this elevated reputation.

Tax Advantages

Oman’s corporate tax rate is 15%, with exemptions for the first OMR 50,000 of taxable income. Free zones like Duqm SEZ offer tax holidays, reducing costs for PJSCs.

Scalability and Flexibility

PJSCs can issue new shares or bonds to fund acquisitions, enter new markets, or diversify operations. For example, a PJSC in logistics could leverage Oman’s role as a Gulf trade hub to expand regionally.

Foreign Investment Opportunities

Oman’s 100% foreign ownership policy makes PJSCs appealing to international investors, unlike other Gulf countries with stricter rules. This fosters global partnerships and capital inflows.

Alignment with Oman Vision 2040

PJSCs support Oman’s economic diversification goals, contributing to growth in tourism, manufacturing, and technology. By forming a PJSC, businesses play a role in national development.

Minimum Capital Required for Opening a Public Joint Stock Company in Oman

The Commercial Companies Law sets clear capital requirements for PJSCs:

General PJSC (SAOG): OMR 2 million (approximately USD 5.2 million), with at least 40% offered to the public via an IPO.
Closed PJSC (SAOC): OMR 500,000 (approximately USD 1.3 million), with at least 30% offered to select investors.

Capital Allocation

The capital is typically used for:

Operational Expenses: Equipment, facilities, and staffing.
Regulatory Fees: MoCIIP, CMA, and MSX costs.
Statutory Reserves: 10% of annual profits must be allocated to a reserve until it reaches one-third of the share capital.

Raising Capital

Founders can meet the minimum capital through:

Contributions from shareholders.
Bank loans or venture capital.
Pre-IPO investments from institutional partners.

The CMA ensures capital is managed transparently, with audits to protect investors.

How Much Time Does It Take to Register a Public Joint Stock Company in Oman?

The timeline for registering a PJSC depends on preparation, regulatory approvals, and the IPO process. Here’s a breakdown:

Business Plan and Name Reservation

Time: 2–4 weeks.
Details: Developing a business plan and securing name approval via Invest Easy.

Preliminary MoCIIP Approvals

Time: 1–2 weeks.
Details: Submitting the AoA and shareholder details for initial approval.

Capital Deposit and Registration

Time: 2–4 weeks.
Details: Depositing capital and completing MoCIIP registration.

CMA Approval

Time: 4–8 weeks.
Details: Preparing and approving the IPO prospectus.

IPO and Share Listing

Time: 2–4 months.
Details: Launching the IPO, allocating shares, and listing on the MSX.

Sector-Specific Licenses

Time: 2–6 weeks.
Details: Obtaining licenses like an Omani License for PJSCs.

Total Estimated Timeline

SAOG: 6–9 months.
SAOC: 4–6 months (shorter due to limited share offerings).

To expedite the process, work with a local PRO or consultant to manage paperwork and approvals.

Conclusion

Starting a Public Joint Stock Company in Oman is a strategic opportunity for businesses seeking to raise capital, enhance credibility, and contribute to Oman’s dynamic economy. With a clear regulatory framework, flexible foreign ownership policies, and alignment with Oman Vision 2040, PJSCs offer a scalable platform for growth in sectors like healthcare, logistics, and tourism. By following the outlined steps—crafting a business plan, securing approvals, launching an IPO, and complying with regulations—entrepreneurs can establish a thriving public company.

The process requires dedication, but the rewards—access to public funds, tax benefits, and global investor appeal—make it worthwhile. Partner with local experts, stay organized, and leverage Oman’s business-friendly environment to turn your vision into reality. Ready to take the next step? Explore Business Setup in Oman and unlock the potential of a PJSC in this vibrant Gulf nation.

FAQs

How long does it take to register a Public Joint Stock Company in Oman?

Registering a PJSC takes 4–9 months, depending on the type (SAOG or SAOC). The timeline includes business planning, MoCIIP registration, CMA approvals, and the IPO process.

What is the minimum capital for a Public Joint Stock Company in Oman?

A General PJSC (SAOG) requires OMR 2 million, with 40% offered to the public. A Closed PJSC (SAOC) needs OMR 500,000, with 30% offered to select investors.

Can foreigners own a Public Joint Stock Company in Oman?

Yes, Oman allows 100% foreign ownership in PJSCs. Expatriates must provide attested documents and may need visas or other relevant licenses for operating healthcare PJSCs.

What licenses are needed for a Public Joint Stock Company in Oman?

PJSCs need a Commercial Registration from the MoCIIP and CMA approval for the IPO. Sector-specific licenses are required for regulated industries.

How does a PJSC differ from other business structures in Oman?

A PJSC allows public share trading on the MSX, unlike LLCs or sole proprietorships. It requires higher capital (OMR 2 million for SAOG) and stricter governance but offers greater scalability.

What are the benefits of a Public Joint Stock Company in Oman?

Benefits include access to public capital, enhanced credibility, tax advantages, scalability, and alignment with Oman Vision 2040, making PJSCs ideal for large-scale enterprises.

How do I launch an IPO for a Public Joint Stock Company in Oman?

Prepare a CMA-approved prospectus, announce the IPO in local media, open subscriptions for 30–60 days, and list shares on the MSX. A financial advisor ensures compliance.