The oil and gas trade is a key business in the UAE; A handful of entrepreneur plans to start an oil trading companies, as it is known to be highly profitable. The United Arab Emirates ranks fourth in the export of crude oil just after Saudi Arabia, Iran, and Iraq.
As part of OPEC, the UAE also has a global responsibility to provide the supply against global demand for crude oil and also to balance prices. Establishing the trade of crude oil and gas seems to be the right choice for most investors.
In Dubai, the situation is completely different, so it is possible to open a full-fledged office for an oil company and oil trader with employees and operational personnel in the country and use all the advantages of favorable taxation at a rate of 0 % in Dubai.
The main limitation when working with oil trading companies and oil traders is the conditions that stipulate that commercial activity should not link to local energy sources in the UAE.
The UAE oil and oil trade market has its own conditions, if the commercial activity is linked to local oil reserves, the full details of which we cannot describe in this short article.
In short, several permits and licenses will be required for that type of activity and that company will pay taxes in the UAE. The UAE local partner is also necessary for this type of company.
For all other commercial activities in the field of oil trade and other energy sources, taxation is at a rate of 0%. This company can be opened in one of the free trade areas in Dubai, UAE, and have 100% natural or legal foreign ownership.
The bank account for this company can be opened in the UAE, where there are many local and international banks present.
Steps to follow for setting up an oil trading companies in UAE
Check out the steps below showcasing the exact process that you need to follow for an oil and gas trading company set up in Dubai UAE.
1. Plan your business
You can start your company in one of the more than 25 free zones. As a local company, you can begin in any of the 7 Emirates [Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Umm Al Quwain or Ras Al Khaimah] of the UAE.
2. Consult with a company registration agent
More than 2,000 activity licenses and more than 28 jurisdictions to choose from are available. So, decision-making is just complex. All jurisdictions do not offer all activities. And each one specializes in one way or another.
3. Select the activity and jurisdiction
A specific commercial license will allow you to trade with specific products. A general trade license, which is more expensive, will allow you to trade with many products.
4. Find a sponsor if you are registering locally
There are 3 types of sponsors
Those who will sign their documents and expect them to take care of their problems. Some of them will sponsor professional companies. This type will charge the lowest rates.
The second type is a middle-level government official with connections that will help you when you are stuck. Your rates will be higher, but they can come with you if you need help.
These sponsors are high-level brands that connect to higher levels. Your rates will be high. His hope would be that his name is enough to do his job.
5. Detail costs for setting up your company
The company’s registration companies will give you detailed costs for incorporating your company and grant you licenses. Visas cost extra.
Business Link UAE has helped numerous clients open an Oil Trading business in UAE, detailing all the steps, costs, regulations, and legalities. Our team of knowledgeable and experienced professionals will guide you thoroughly removing all the hurdles on the way.