Oil trading is a major business in the United Arab Emirates; a handful of businessmen consider starting an oil trading Dubai company setup as this is renowned to be greatly beneficial.
When you begin an oil trading business in the emirate, you can exchange, and benefit from, oil commodities like CFDs and fortunes trades.
As a portion of a regulated enterprise, more procedures need to be followed. Although, with the appropriate aid, you can be up and operating within weeks.
The Process to Start Oil Trading Business in Dubai
1. Locate a Local Sponsor for Your Business
The management in the UAE doesn’t permit overseas to possess 100% of a firm in the industries that are economically vital to the nation. As the oil and gas sector is liable for most of the nation’s wealth, this is most crucial to them. In such terms, you would require to locate a local sponsor to share the right of the venture with you.
Even in case you’re transferring right with a local sponsor, you would sustain all the control authority. You don’t need to share benefits as per the shared ownership. There is a flat annual charge that you must pay to the local sponsor.
2. Select a Business Name
The authorities have a strict set of rules for selecting names for your venture. You have to avoid any objective language. To sidestep any prospective disputes, you must avoid the names of popular corporations even in case they don’t live in the United Arab Emirates.
This is suggested to present around 3 names when trademarking your corporation. Many online tools assist you to hunt in case the name you’re choosing is obtainable in the United Arab Emirates or not. As long as you’re following the set traditions, it is a reasonably smooth move to do.
3. Complete the License Application Procedure
It is a very significant move in the procedure of initiating an oil trading business in Dubai. It is necessary to acquire a license from the Economic Department in the emirate. This move is an entre procedure with moves of its own. In case you’re acting with a business formation consultant, then this would be very easy. In case not, then you have to deal with the departments by yourself.
You require to fill out an application that would be given by the Department in the emirate. This would need a few of the common details about your venture and yourself. Once you submit all the necessary things, they give you pre-approval.
4. Obtain Essential Approvals
Based on the business activities you have selected for your venture; you would have to obtain some additional approvals from distinct agencies and government bodies. For instance, one of the essential permissions for the oil trading business in Dubai is given by the Supreme Petroleum Council. In case you’re performing with a business formation consultant, then getting this permission would be smooth.
5. Complete Visa Applications
In order to act in Dubai, you have to possess a residency visa here. The UAE government declared the golden visa the best way to live here for a long period of time. Investors, businessmen, and skilled individuals are making applications for this visa.
When you got your business license, you can sponsor the visas for your workers also. The score of visas that you can sponsor is determined by the size of your venture.
6. Open a Corporate Bank Account
The final move of initiating a Dubai company setup in the Oil sector is to open a company bank account. This is difficult to open a bank account here as a foreign businessman. Although, with an oil trading venture and residency visa in the emirate, your corporate bank account would be not so tough to get. The business setup consultants – Start Any Business UAE will give assistance in opening a corporate bank account in Dubai.
The Perks of Starting an Oil Trading Business in Dubai
However, the business people already understand the advantage of starting an oil trading business in Dubai, here are some prime benefits –
- Make great profits
- Low-income custom and corporate tax rates.
- Smooth foreign trade
- You can go through any commercial activity including UAE oil reserves.
- Quick and trusted formation procedure of a company.
- Continue support from the government
- Smooth networking and cooperation with a few of the very crucial oil markets of the world.
- Full repatriation of profits and capital.
- No restrictions on currency from the government of Dubai.
- A methodic geographic spot that assists with smooth transportation.
Read More: How To Setup A Company In Dubai
