Dubai owes much of its modern growth and prosperity to the discovery of oil. Without this valuable resource, our city would not have transformed from a small fishing village into the bustling metropolis it is today, especially within just 30 years.
If you want to set up or start an oil trading business in Dubai, then you are on the right track. Oil accounts for approximately 65% of the United Arab Emirate’s GDP.
Although the oil industry in the UAE is highly regulated, there are opportunities for entrepreneurs to benefit from this precious resource in various ways. One lucrative option is to start an oil trading business in Dubai.
When Starting an oil trading business in Dubai, you gain the opportunity to trade and profit from oil commodities like CFDs and futures trades. As an industry subject to regulations, there are additional steps to navigate when setting up as an oil trader. Nonetheless, with proper support, you can swiftly establish your business and commence operations within a few weeks.
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Steps to Start an Oil Trading Business in Dubai
The process of starting an oil trading business 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.
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Here are few steps to star an oil trading business in Dubai:
Step 1: Understand the Oil Market
Familiarize yourself with oil options and futures trading, including contracts and exchanges.
Step 2: Decide on Trading Method
Choose whether you want to trade through CFDs, futures, options, make investments, or establish your own company.
Step 3: Select a Location
Choose between setting up in a free zone or mainland Dubai, considering the advantages of each.
Step 4: Develop a Business Plan
Create a detailed business plan, including market analysis, employee count, products, operating space, investment amount, financing, competitors, suppliers, and marketing strategies.
Step 5: Choose a Business Name
Select a unique business name that complies with government naming regulations and register it with the appropriate legal department.
Step 6: Find a Local Sponsor
To operate an oil trading business in close collaboration with government departments and the local UAE market, you will typically require a local sponsor. The local sponsor can be an Emirati individual or a UAE business, holding a 51% stake in your company. You retain decision-making authority and pay an annual fee for their services.
Step 7: Make your License Application
The most crucial step is applying for your UAE trade license, which is done directly through the Dubai Department of Economic Development or the respective authority in your chosen emirate. The application process is primarily online and can be completed swiftly, with Company Setup assisting you throughout the process.
Step 8: Obtain Additional Approvals
In addition to the trade license, certain activities in the oil trading industry may require approval from the Supreme Petroleum Council (SPC). Company Setup can assist you with obtaining the necessary approvals.
Step 9: Make your Visa Applications
To work in the UAE, you need a UAE residency visa, which involves steps such as biometric scanning, a medical checkup, and a chest x-ray. As a UAE business license holder, you can also sponsor visas for family members or domestic workers.
Step 10: Opening a Corporate Bank Account
To open a corporate bank account for your oil trading business, you can simplify the process with Company Setup Consultants.
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 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.
Starting an oil trading business in Dubai offers several benefits, including:
- High Profit Potential
- Low Taxation
- Global Trading Opportunities
- Diverse Commercial Activities
- Efficient Company Setup
- Government Support
- Networking and Collaboration
- Capital and Profit Repatriation
- Currency Flexibility
- Strategic Geographic Location
Documents Required to Start an Oil Trading Business in Dubai
To set up an oil trading business in Dubai, you will need to submit a few essential documents. Here are the basic requirements:
1. Copies of Passports: Provide copies of passports for all individuals involved in the business, such as shareholders, directors, and partners.
2. Passport-Size Photos: Include recent passport-size photographs of the individuals associated with the business.
3. Entry Visa or Stamp Page Copy: Submit a copy of the entry visa or stamp page for each person involved in the business.
Cost of Setting up an Oil Trading Business Dubai
The cost of setting up an oil trading business in Dubai depends on various factors, such as the size of the company, the activities it will undertake, visa requirements, and registration fees. Fortunately, the cost is not excessively high, as the economic department does not impose hefty activity fees. This makes it a profitable venture. Generally, the cost is similar to that of a commercial license in Dubai, which is around 30,000 AED.
Can I do oil business in Dubai?
Engaging in the trading of refined oil products in Dubai is possible but subject to specific regulations. You need approval from the Department of Petroleum Affairs (DPA) through The Ruler’s Court before obtaining a license. When applying for a business license, select “Jet Fuel Supply Services” as your business activity under the category “Other specialized wholesale” with activity code 4661.93.
How can we help to Start an Oil Trading Company in Dubai?
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.
At Company Setup Consultants, our team is knowledgeable about the oil industry and market dynamics. We can assist you throughout the process, including selecting the ideal location and providing advice on trading options. Consulting with experts will ensure a smoother journey and increase your chances of success. Take the first step today and contact us for professional assistance.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971 – 5825 95164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.