Doing Business in Oman - RSM International

2.8 Capital contribution
For a Limited Liability Company (LLC) with a minimum capital of RO 150,000 the
maximum foreign equity participation is restricted to 70% of the capital.
For Limited Liability Company or Joint Stock Company, foreign participation is allowed up
to 100% where there is a minimum capital of RO. 500,000.
For SAOG companies, promoters’ contribution is a minimum of 30% of the share capital
and has to be contributed as per the public issue schedule.
The capital contribution is required at the formation stage itself, as a bank certificate has
to be submitted for capital contribution in cash. Where the contribution is in kind, a
certificate from an auditor licensed to operate in Oman should be submitted confirming
the value and payment of each shareholder’s contribution in kind.
2.9 Dissolution and liquidation of business entities
Dissolution procedures for partnerships and joint ventures are simple and fast. They
require registration of the Partnership Dissolution Deeds.
A Limited Liability Company shall be dissolved for any of the following reasons:
Expiration of the term fixed of the company or the occurrence of any event obligating
the dissolution provided it is laid down in the memorandum of association or articles
of association of the company.
Accomplishment of the purpose for which the company was established or
impossibility of accomplishing such purpose.
Transfer all shares or all stocks in the capital of the company to one partner.
Bankruptcy of the company or loss of all or most of its capital is such loss renders
the effective use of the remaining capital impossible.
Agreement of the partners to dissolve the company.
If at the request of any interested party, and for any of the foregoing reasons or for
any other reason seriously impairing the company’s ability to accomplish its object,
the Authority for the Settlement of Commercial Disputes determines the dissolution
of the company.
The partners meeting may resolve, at any time, to dissolve the company upon the
favourable vote of a majority of members representing, at least, three quarters of the
Company’s capital.
After its dissolution the Limited Liability Company shall be liquidated in accordance
with the law and the provisions of the company’s memorandum of association,
provided such provisions shall not violate any provisions of the law of mandatory
nature.
A joint stock company shall be dissolved for any of the reasons specified in the
Company’s articles of association or any of the first six reasons mentioned above.
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