Under the Commercial Companies Law of Oman (“CCL”), a holding company may be formed either as a joint stock company or a limited liability company. The minimum capital requirement of a holding company is RO 2,000,000. Such capital may either be paid up upon incorporation of the holding company in full or in part to the extent of 50% in the case of a joint stock company. In case of the issued share capital being partly paid up then the remaining balance will need to be paid up within three years from the date of incorporation of the holding company.
The objectives of the holding company must be as follows:
(a) the management of subsidiary companies or participation in the management of other companies in which the holding company owns shares;
(b) the investment of its funds in shares, bonds and securities;
(c) the granting of loans, guarantees and finance to its subsidiaries; and
(d) the acquisition of patent rights, trade marks, concessions and the other intangible rights for the exploitation by the company or lease to its subsidiaries or to other companies.
A holding company cannot own interests in a general or limited partnership and it is prohibited from owning shares in any other holding company.
Minimum capital
The minimum capital requirement of a holding company will be RO 2,000,000. As set out above, 50% of the issued share capital may be paid at the time of incorporation of the holding company with the remaining balance will need to be paid up within three years from the date of incorporation of the holding company.Duration for setting up a holding company
In the case of limited liability companies, the holding company may be registered within 15 days from the date of receipt of all documents from the intending shareholders. In the case of joint stock companies, it may take approximately 45 days, for the reasons set out above. However, please note that the entire capital of RO 2,000,000 must be paid up at the time of incorporation.Number of directors
In the case of joint stock companies, there must be no fewer than three directors, and the maximum number of directors may not exceed twelve. Limited liability companies do not have a board of directors.Article 128 of the CCL provides:
“The board of directors of the holding company may invite the chairman of the board of directors of any of the subsidiary companies to attend the meetings of the board of directors of the holding company when considering any matter relating to the affiliate company, so as to enable him to make any remarks, express his opinion or give explanations or statements requested by the board on certain issues. He may participate in the discussions without having the right to vote.”
