A business setup in Dubai can be a lucrative opportunity to make profits, grow internationally, and create a reputed brand name. At BCM Corporate Services LLC, we have years of experience nurturing businesses across all scales and industries for a hassle-free establishment in Dubai.
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Starting an oil trading business in Dubai can be a lucrative venture given the city’s strategic location, established infrastructure, and business-friendly environment. Here are some steps you can take to start your oil trading business in Dubai:
Conduct thorough research: Before starting any business, it’s essential to do thorough research to understand the market demand, competition, legal requirements, and regulations. You can consult with industry experts, attend trade shows, and network with other business owners.
Choose your niche: Oil trading is a vast industry, and you need to decide on your area of specialization. You can focus on crude oil, petroleum products, natural gas, or other related products.
Register your business: To operate legally in Dubai, you need to register your business with the Department of Economic Development (DED) and obtain the necessary licenses and permits.
Secure funding: Starting an oil trading business requires significant capital investment, so you need to secure funding from investors or financial institutions.
Build relationships: Developing strong relationships with suppliers, buyers, and other stakeholders in the industry is crucial to the success of your business. Attend industry events, network, and build a strong online presence.
Implement effective risk management strategies: The oil trading business is highly volatile, so it’s crucial to have effective risk management strategies in place to mitigate losses and protect your investments.
Stay up-to-date with industry developments: Keep yourself informed of the latest trends, regulations, and developments in the oil trading industry to make informed business decisions.
Starting an oil trading business in Dubai can be a complex process, and it’s essential to seek professional advice from lawyers, accountants, and industry experts to ensure compliance and success.
The United Arab Emirates is known around the world for its booming economy. While there are many successful industries in the UAE, the oil and gas sector is one that dominates the national economy. In fact, Abu Dhabi is one of the largest energy producers in the world!
If you want to take part in this developing market, there are plenty of opportunities for business. Oil and gas companies in UAE need a wide range of support from equipment, to oil rigs, logistics, transportation, and more. Start Oil Trading Business in Dubai So, it’s an excellent environment for setting up an oil and gas company. And with the help of the experts at BCM Branches, business setup has never been easier!
As we mentioned earlier, all oil and gas companies need to get approval from the Supreme Petroleum Council. This can be done through the Abu Dhabi Department of Economic Development (ADDED). You’ll need the work IDs of the local sponsor or service agent to apply for this approval.
Depending on your business activity, your company may require special approvals.
These companies have to get a trade license with an additional activity: Onshore and Offshore Oil and Gas Field and Facilities Services:
Construction
Drilling
Employee catering
Equipment trading
Allied oil and gas related activities
There are so many benefits to setting up an oil and gas company in the UAE. The numbers speak for themselves:
The UAE is the seventh-largest natural gas reserves in the world.
UAE is the 4th biggest crude oil exporter in the region.
The country produces an average of 4 million barrels of petroleum and other liquids per day.
There are reserves of nearly 100 billion barrels of crude oil.
Not only would you setup a business in an industry that’s already booming, but you also get the advantages that come with a business setup in the UAE like:
Easy company setup
No corporate taxes
No income taxation
Simplified financial reporting
Great location right in the heart of trade routes
Access to a talented workforce
World-class infrastructure
Easy to open a corporate bank account
There is a large support system for the Oil and Gas Production setup in the UAE. It includes allied sectors like the oil extraction units, a system of pipelines, refineries, port terminals, etc.
The Gas pipeline network is a major system through which the gas is transported to nearby countries.
Natural gas is the main resource for electricity production. Also, as the domestic electricity consumption increases the volumes of natural gas production go up. Start Oil Trading Business in Dubai For a constant production of Natural Gas, a stable economy and growing populations are key drivers.
The infrastructure facilities in UAE for the production of Natural Gas are top-notch. Start Oil Trading Business in Dubai There are a lot of subcontracting opportunities for private companies.
The first step in setting up your own oil trading business is to find a reputable broker who will help you get started. You should choose a broker based on their experience and reputation within the industry. Start Oil Trading Business in Dubai Once you have found a broker, you need to decide whether you want to go through a full service broker or if you would like to do all of the paperwork yourself.
Step 1: Choose your company name
The formation process for an oil trading business starts in the same way as any other – choosing a name. When choosing a company name in the UAE, you must abide by a strict set of naming conventions.
Step 2: Find a local sponsor
Oil trading businesses are often run by companies based outside the United Arab Emirates. They are regulated by the Dubai International Financial Centre Authority (DIFCA) which oversees all aspects of the financial services industry within the DIFC. The DIFCA regulates the activities of all financial institutions located in the DIFC.
The UAE government has made it clear that it wants to promote the country’s image abroad. It has therefore decided to invest heavily in promoting the country through sports sponsorship. This is why the UAE government has created the Emirates Sports Authority (ESA) which oversees the management of all sports activities in the UAE.
Step 3: Make your license application
With these critical early decisions out of the way, you can move on to the most important step in the process : applying for your UAE trade license.
When applying to form a mainland company, this application is made directly to the Dubai DED, or the local equivalent if you choose to set up in another emirate. This process takes place primarily online and can be completed within hours. Start Oil Trading Business in Dubai We can manage the process for you, informing you as soon as your license is approved, and you are ready to trade.
Step 4: Obtain additional approvals
Depending on the business activities you have chosen for your business, you will need to get a few more approvals from different agencies and government bodies. Start Oil Trading Business in Dubai
Our trade license is just the first approval required to start an oil company in the UAE. Depending on the exact nature of your activities, you will also require approval from the Supreme Petroleum Council (SPC).
For example, one of the necessary approvals for trading oil in the UAE is provided by the Supreme Petroleum Council (SPC). If you are working with a company set up expert, then getting these approvals will be very easy.
Step 5:Make your visa applications
As well as a trade license, you are also required to hold a residency visa to work in the UAE.
The visa application process consists of several steps including biometric scanning, a medical checkup, and a chest x-ray. Start Oil Trading Business in Dubai As the holder of a UAE business license, you can also sponsor others for their visas. This could be a spouse, parent or child, or a domestic worker such as a housekeeper.
The maximum number of visas you can apply for will depend on the size of your company, your chosen setup and, for dependent visas, your personal earnings.
Step 6: Opening a corporate bank account
The last step of starting an oil trading company in Dubai is to open a corporate bank account. It is tough to open a bank account here as an overseas investor. However, with an oil trading business and residency visa here in Dubai, your corporate bank account will not be so hard to obtain.
Besides the countless benefits of starting a company in the oil and gas industry, there are several benefits of set up a company in Dubai. Dubai is a tax haven for big and small businesses alike. Besides low tax rates, Dubai provides many other benefits to attract investors and entrepreneurs from all over the world.
One of the biggest benefits of starting a business in Dubai is the fast and easy company incorporation process. Even though the oil and gas industry is heavily regulated here in the UAE, the business consultants are experienced enough to breeze through these regulations. Start Oil Trading Business in Dubai
Starting an oil trading business in Dubai with the help of an experienced business consultant is cost-effective as well.
Here are the benefits of Start Oil Trading Business in Dubai briefly summarized:
The low tax rate in Dubai.
100% repatriation of capital and profits.
No currency restriction from the government.
Easy and fast company formation process.
Cost-effective company setup.
The strategic geographic location of Dubai to flourish in trade.
If you are looking to start an oil trading business in Dubai, then you are at the right place. The experts at Company Setup Consultants have years of experience starting businesses all over the UAE. With our services, you can get a head start and hit the ground running.
Start Oil Trading Business in Dubai
The Supreme Petroleum Council is the governing body for regulating the Petroleum sector in Abu Dhabi. It is a Government Entity created for formulating and overseeing the successful implementation of the Emirate’s petroleum policy.
The Supreme Petroleum Council Approval (SPC Approval) is required for all Oil and Gas companies. Start Oil Trading Business in Dubai Companies in the oil & gas sector operating in the following activities and beyond would require approval to start working in UAE.
A crude Oil Trading License in UAE is a mandatory requirement for any investor to conduct trading in Oil and Gas products. Also, there are only a few Free Trade Zones in UAE that are authorized to provide the Crude Oil Trading License in the UAE.
Depending on the business requirement, and exact business activities, the investors can choose the respective business jurisdictions. For Crude Oil Trading, there are certain pre-approvals required from the Ministry of Energy. BCM Branches expert Business Consultants will coordinate with Government agencies, Free Trade Zones, and Semi-Governmental bodies to expedite the Crude Oil Trading License process.
Hamriyah Free Zone is a favorable choice for investors looking to venture into Crude Oil Trading in UAE due to various business benefits.
The 100% Ownership of the company is a major attraction, followed by favorable taxation policies, then the logistics infrastructure offered by the Free Zone. Start Oil Trading Business in Dubai
1. 100% Foreign Ownership & Tax-Free Jurisdiction
In a Free Zone company, foreign investors can own 100% of the company. They have 100% control over the company’s operations and are also eligible for 100% profit repatriation and capital transfers. Also, there is a 0% corporate and income tax. Being a free zone there is no customs duty on imports and re-exports.
2. Easy Company Setup Process & Lower Setup Cost
The company setup process in Hamriyah Free Zone is straightforward and easy for investors to obtain their trade license. However, they have to get the required approvals from the respective Government departments and Free Zone Authorities to start a Crude Oil Trading company.
The Free Zone has multiple packages based on the visa quota required, multi-year license, office types, etc.Start Oil Trading Business in Dubai Investors can choose from a variety of options and form the company according to their requirements.
3. Logistics & operations
There is good connectivity between the Free Zone and the rest of the UAE as well as neighboring countries including Oman, Bahrain, and others. The proximity to Hamriyah Port and other major Seaports of UAE, make it a gateway to the world. Also, it opens up new business opportunities and provides the operational infrastructure, logistics support, Storage facilities, and easy shipment to the rest of the world. Start Oil Trading Business in Dubai
We at BCM Corporate services LLC, extend our quality services to our clients with well experienced & qualified Business consultants with rich expertise in document attestation Services in Dubai so Start Oil Trading Business in Dubai that clients’ requirements of Business setup in Dubai. can be completed on time with satisfactory Results outcome. Please feel free to reach us for your Business setup and Bookkeeping and Accounting Firms in Dubai requirements on our email id: info@branches.ae or call us on +971502585921