Ownership Structure

LLCs are formed by multiple shareholders, with a minimum of two and a maximum of fifty shareholders. The share capital is divided among these shareholders. Whereas, SPCs are owned entirely and exclusively by one individual or entity. Thats why many people understand SPCs to be essentially LLCs, but with a single shareholder.

Number of Companies a Person Can Establish

LLCs have no specific limitation on the number of companies a person can establish, on the other hand, in regard to SPCs, a natural person may not establish more than one SPC, and a SPC cannot establish another SPC.

Management and Continuity upon Owner’s Death

In terms of management and continuity, LLCs are managed by one or more managers appointed by the shareholders, and the company continues to exist regardless of changes in shareholders. Whilst SPCs are managed by the sole owner, who may also appoint managers, and a SPC ceases to exist upon the death of the owner unless the shares of the heirs are held by one person or the heirs decide to change the SPC to a different legal form.

Operational Formalities

A LLC is required to have a shareholders meeting at least once a year, and it must appoint an external auditor if certain conditions are met (such as having more than seven shareholders or having a capital exceeding fifty thousand Rial Omani). These formalities are not required for SPCs at all.

Conclusion

LLCs and SPCs are very similar, but there are some key differences between them. It is highly recommended for any lawyer working in corporate matters to familiarise themselves with all the provisions of the Commercial Companies Law. You can read the Commercial Companies Law in English in full at the link below:

Written by:

Malaak Al-Lawati

Malaak is a legal intern at Decree. She has previously interned in private practice. She is interested in corporate law and commercial law. She is about to start the final year of her LLB degree at Cardiff University.

Under the original royal decree the branch of insurance against work injuries and occupational diseases for non-Omani workers was supposed to enter into force in July 2026, today’s royal decree pushed this date to July 2028. Similarly, the branch of insurance of sick leave and extraordinary sick leave was supposed to enter into force in July 2025, it has now been pushed to July 2026. Finally, the savings system was supposed to enter into force in July 2026, and now it will enter into force in July 2027.

You can read Royal Decree 60/2025 in English in full on the link below:

The circular does not have a specific entry date, so it is assumed that it is immediately enforceable.

It is worth noting that in the year 2020, Oman issued a decision banning single-use plastic bags, but in 2024 another decision was issued limiting the ban only to single-use plastic bags that have a thickness of less than 50 micrometers. This new circular by MOCIIP appears to further erode the ban of single-use plastic bags by making it mandatory for retail outlets to provide consumers with single-use bags, plastic or otherwise, free of charge. This goes against the international trend towards sustainability and encouraging people to reuse and recycle their bags as part of global environmental efforts.

You can read MOCIIP new decision on single-use bags on the link below:

Preserving the independence and integrity of the country

Oman is internationally known for its peaceful and harmonious character, this anchors the nation’s sovereignty and ensures its unity amid regional and global challenges. It is through His Majesty’s efforts that Oman’s reputation is maintained, preserving and protecting the state’s rich history.

Safeguarding the rights and liberties of citizens

The duty of the Sultan to safeguard citizens’ rights and freedoms in Oman is realised through a constitutional and legal regime emphasizing justice and the rule of law. It entails the protection of fundamental human rights founded on constitutional guarantees and rigorous judicial safeguards.

Guaranteeing the rule of law and directing the public policy of the state

Establishing the legal framework and national direction promotes social and economic stability. The Sultan’s role, assisted by the Council of Ministers, reflects a governance structure with separation of powers, the legislative process and the judicial authority.

Presiding over the Council of Ministers

In the context of Oman, the leadership of the Council of Ministers is vested in His Majesty the Sultan, who may serve as a Prime Minister or appoint someone to this position.

Promulgating laws, ratifying international treaties, and granting pardons

Promulgation refers to the formal process by which laws are officially issued and made enforceable within the country. Treaty ratification is a critical step that provides the Sultanate of Oman with formal commitment to international agreements. Finally His Majesty has the power to grant pardons as a sovereign prerogative.

Conclusion

Oman’s Basic Statute of the State articulates the Sultan’s role as foundational to the country’s stability, prosperity, and identity. The duties of the Sultan reflect a governance system that blends traditional monarchy with modern institutional frameworks, balancing authority with responsibility for the Omani people.

For those interested in further exploring the Omani constitutional law, the Basic Statute of the State remains a key document that encapsulates the legal and political principles governing the Sultanate today.

You can read the Basic Statute of the State in full in English through the link below:

Written by:

Malaak Al-Lawati

Malaak is a legal intern at Decree. She has previously interned in private practice. She is interested in corporate law and commercial law. She is about to start the final year of her LLB degree at Cardiff University.