The modernization of Dubai can be largely credited to the oil and gas industry here. At the start, Dubai was nothing but a small fishing village. Only after the discovery of oil did Dubai rapidly flourish into its current state today. In only the span of 30 years, it became one of the most influential cities in the business world. All thanks to the oil trading business in Dubai.

If you want a start an oil trading company in Dubai, then you are on the right track. Oil accounts for approximately 65% of the United Arab Emirate’s GDP. Since the market is so saturated, many entrepreneurs and businessmen have the wrong concept that it is impossible to start a business in the oil and gas sector. One of the most effective ways to enter this market is as an oil trader.

You can enter the oil and gas industry easily as an oil trader. You can trade and profit from oil commodities like the future trades and CDFs. However, the oil and gas industry is heavily regulated in Dubai and the rest of the emirates. But do not let that hinder your interest in this sector. There are several business setup consultants who are more than happy to help you start an oil trading business in Dubai.

Benefits of Starting an Oil Trading Company in Dubai

Besides the countless benefits of starting a company in the oil and gas industry, there are several benefits of starting 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. 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 starting an oil trading company 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.

How to Start an Oil Trading Business in Dubai

The process of starting an oil trading company in Dubai is much easier when you work with a company set up expert. They have established a lot of businesses in the UAE, so they know all the ins and outs of the setup process. You can attempt to tackle the whole process yourself as well, but it is highly discouraged if this is the first time you are setting up a company in the UAE.

Here are the steps in the process of starting an oil trading business in Dubai:

1. Find a Local Sponsor for Your Business

The government in the UAE does not allow foreigners to own 100% of a business in the sectors that are strategically important to the country. As the oil and gas industry is responsible for most of the country’s wealth, it is very important to them. In such cases, you will need to find a local sponsor to share ownership of the company with you. These local sponsors can be Emiratis or business entities in the UAE.

Even if you are sharing ownership with a local sponsor, you will retain all the decision-making power. You do not have to share the profits according to the shared ownership. You need to pay the local sponsor a flat annual fee.

2. Select a Trade Name for Your Business

The authorities have set a strict set of rules for choosing names for your company. For example, the trade name of your business cannot contain any racial or religious slurs. You need to avoid any blasphemous or offensive language. To avoid any future conflicts, you should avoid the names of well-known organizations even if they do not exist in the UAE.

It is suggested to submit at least three names when trademarking your company. There are several online tools that help you to search if the name you are opting for is available in the UAE or not. As long as you are abiding by the set conventions, this is a fairly easy step to complete.

3. Complete the License Application Process

This is the most crucial step in the process of starting an oil trading business in Dubai. You need to obtain a business trade license from the Department of Economic Development in Dubai. This step is a whole process with steps of its own. If you are working with a company set up expert, then it will be a walk in the park. If not, then you need to deal with the authorities in the Department of Economic Development in Dubai by yourself.

You need to fill up an application that will be provided by the Department of Economic Development in Dubai. It will require some of the basic information about your business and yourself. After they provide you with the initial approval, you are ready to move on to the next step.

4. Obtain the Necessary 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. 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.

5. Complete the Visa Applications

To work in the UAE, you need to hold a residency visa here. The government of the UAE announced the golden visa for long-term residency here. Investors, entrepreneurs, and talented individuals are applying for this visa.

When you have received your business trade license, you can sponsor the visas of your employees as well. The number of visas that you can sponsor will depend on the size of your office space. You can also sponsor the visa of your spouse, children, and domestic worker.

6. Open 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.

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.

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