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.

1. Annual Leave

The annual leave is the most common type of leave, it entitles an employee to a minimum of 30 days of paid leave, granted they complete six months of employment. It can be taken in parts and can be carried over to the next year, provided that the total balance does not exceed 30 days, unless the leave was not taken due to work requirements.

2. Maternity Leave

Female employees are entitled to 98 days of paid maternity leave. This could be started at most 14 days before the expected date of birth. Something interesting most people don’t know is that this special treatment extends to when she comes back to work, as she is entitled to a one hour paid break per day for childcare for one year.

3. Paternity Leave

New fathers can get 7 days of paid paternity leave within 98 days of the child’s birth. If the mother passes away during childbirth or while on maternity leave, the father is entitled to the remainder of the maternity leave.

4. Sick Leave

If an employee provides a medical certificate from a recognised medical authority, the employee is granted a maximum of 182 days of sick leave per year. The employee is entitled to the full salary for the first 21 days. Should the employee’s illness continue, the pay is gradually reduced: the employee receives 75% of the salary for days 22-35, 50% for days 36-70, and 35% for the remaining time up to the 182-day annual limit.

5. Bereavement Leave

When losing a loved one, the Omani Labour Law grants employees paid leave to grieve. The employee is entitled to 10 days for the death of a spouse or child, 3 days for a parent, grandparent, or sibling, and 2 days for an aunt or uncle.

6. Iddah Leave

Iddah in Sharia law is the period a Muslim woman must observe in her home after the death of her husband. In that case, she is allowed 130 days, as opposed to 14 days for non-Muslim women.

7. Hajj Leave

Hajj is the annual pilgrimage Muslims perform in Mecca. The Labour Law grants Muslim employees 15 days of paid leave once during their service to perform the Hajj.

Conclusion

These were some of the leaves granted to employees under the Labour Law. It is important to note that there are other types of leaves that were not covered, such as marriage, study, and patient accompaniment leave. We highly recommend that all employers and employees make themselves familiar with all the provisions of the Labour Law.

You can read the Labour Law in full in English at the link below:

Written by:

Khalid Al-Ghafry

Khalid is legal intern at Decree. He has previously interned in both Omani and international law firms. He is about to start his final year in Law School at the University of Manchester.

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 amendment created a new requirement for authorised signatories to fall under specific categories of individuals who can take this role, such as partners in the company, members of the board of directors, and administrative and finance staff. Notably it appears that it is now not possible to appoint an employee of another company who does not fall under any of the categories specified as authorised signatory.

This amendment of the Commercial Companies Regulation enters into force tomorrow. You can read the full text of this amendment in English 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:

Under the new Advocacy and Legal Consultancy Law, a lawyer would have to register as a trainee advocate and complete several formalities before qualifying as an advocate permitted to appear before primary courts. These formalities require registering a trainee advocate in an advocacy law firm for a period of two years, undertake a formal training programme organised by the MJLA, and complete an exam. At the time of writing, the MJLA has only published the details of a transitional training programme and exam that trainee advocates that have registered before the entry into force of the law and who complete a period of two years before 3 October 2025 must perform.

For trainee advocates that fall under this category, the MJLA has detailed in its newly published guide that the mandatory training programme will be an online self-study programme delivered through a series of pre-recorded videos. The programme will cover topics such as court procedure, litigation skills, statement writing skills, administrative law, labour law, penal law, analytics skills, commercial law, personal status law, and advocacy ethics.

In addition to the requirement to complete the online course, trainee advocates who complete their training period before 3 October 2025 would also be required to complete an exam. This will be a single 3-hour paper exam taken in person in the Arabic language. This exam will have three parts: legal knowledge questions, an exercise for analysing a hypothetical case file, and an exercise for writing a legal opinion or a section of a contract.

Trainee advocates are required to score 70% or more to pass the exam. There will also be a fee of 50 Rial Omani to enter the exam.

The actual date for the exam has not been specified yet, and is expected to be announced by the MJLA on social media in the upcoming months.

You can view the Arabic language guide for the transitional qualification requirements for trainee advocates on the link below:

The Sultan is the Prime Minister?

The current Prime Minister is Sultan Haitham. However, the Basic Statute of the State allows the Sultan to appoint someone else to be the Prime Minister. Most people don’t know that there was a period of time the Sultan actually appointed a Prime Minister. This happened between the years 1970 – 1972, where Sultan Qaboos appointed Sayyid Tariq bin Taimur (Sultan Haitham’s father) as Prime Minister.

Who Qualifies for the Council of Ministers?

For a person to be appointed a member of the Council of Ministers, they must be at least 30 years of age and they must be of Omani nationality by origin. The age requirement is to balance appointing young and talented leaders, while also ensuring they have the required experience.

Executive but with legislative roles?

The Council of Minister has many functions as the main body of the executive branch of the government, such as overseeing the functioning of the administrative apparatus of the state, monitoring the performance of its duties, and coordinating between its units. However, the Council of Ministers also drafts laws and royal decrees, which can be seen as being interconnected with the legislative branch of the government. If you are further interested in understanding the separation of powers in Oman, check out this post on our blog.

Ministers On Boards of Public Companies?

The Basic Statute of the State prohibits members of the Council of Ministers from being members of any board of directors of any public joint stock company (SAOG) during their tenure. However, they are not restricted from being members of boards of directors of other forms of companies, such as LLCs, and SAOCs.

Conclusion

The Council of Ministers remains one the most crucial bodies in the government of the Sultanate of Oman. You can learn more about it by reading the Basic Statute of the State in full in English at the link below:

Written by:

Khalid Al-Ghafry

Khalid is legal intern at Decree. He has previously interned in both Omani and international law firms. He is about to start his final year in Law School at the University of Manchester.

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.

Withholding Tax

The Omani Personal Income Tax Law adopts a withholding tax approach for salaries and wages, pensions, end-of-service gratuities, and board membership bonuses. Under this approach, the employer has a legal obligation to deduct the income tax directly from the amount to be paid to the employee, pensioner, or board member and periodically transfer them to the Tax Authority. This is somewhat similar to the situation of Social Protection Law contributions, which are partially paid by the employee and the employer is required to withhold the contribution amount from the salary of the employee and transfer it to the Social Protection Fund directly.

In addition to the standard withholding tax obligations, article 44 of the Personal Income Tax Law imposes additional obligations on public and private sector entities to withhold tax in regard to payments made for matters other than wages, salaries, pensions, end-of-service gratuities, and board membership bonuses, if these payments exceed 20,000 Rial Omani. If this provision is triggered, the law makes a distinction between the percentage of the tax to be withheld based on the tax residency status of the person receiving the payment.

Failure to comply with these withholding tax provisions can result in a fine of 1% per month of the amount of the withhold tax. There are also criminal punishments for deliberately failing to withhold tax.

Tax Returns Filing

The Personal Income Tax Law also imposes an obligation on employers to file tax returns on behalf of their employees if certain conditions are met and the employee in question requests that the employer files these tax returns on their behalf.

Retention and Supply of Documents

Employers are required to retain all records, documents, data, information, invoices, and others documents relating to the for a period of 5 years from the date of filing any tax return, and must provide the Tax Authority with any evidence it requests.

Sufficient Time to Comply

The Personal Income Tax Law was published at the beginning of this week, but it enters into force on 1 January 2028. This should give employers sufficient time to comply with this new law. The executive regulation of this law—which is vital to comply with the law—is expected to be released within the next 12 months.

You can read the new Personal Income Tax Law in English in full on Decree. You can also view our downloadable compliance Toolkit on the link below:

While Lex AI is capable of generating compliance checklists, Decree Toolkits goes beyond this by providing a curated collection of easy to use checklists that are reviewed and verified by our legal team. Each toolkit provides key information regarding the application of the item in question along with a breakdown of the key obligations imposed and a highlight of potential fines for failing to comply. Decree Toolkits are also downloadable in Excel and adopt a structure commonly used by compliance practitioners in Oman, which should allow our users to download our checklists and customize them to work with their workflows.

When a Toolkit is available for a specific item on Decree, a new Toolkit button will be displayed on the page of the law or regulation in question:

It is also possible to browse all available Toolkits on the main Decree Toolkits page and also look them up using the standard Decree search.

Decree Toolkits is available through a bundle subscription to Decree. It is available for free for all Decree members on all subscription plans until the end of the month of July.