How to set up Oil Trading Business in UAE?
- December 26, 2022
- Posted by: axiom_admin
UAE owes much of its booming economic success to oil trading. Oil trading is one of the most profitable businesses in the UAE. Abu Dhabi is among the first three business exporters after Saudi Arabia and Russia. During the last few years, many efforts have been made to change the nature of the UAE economy, yet oil trading is still the number one player in the UAE economy, with about 65 %.
Many entrepreneurs and startups could benefit from oil trading through specific ways such as CFDs, future commodities, etc. Although it is regulated, many traders can benefit from this golden commodity. Setting up an oil trading company in UAE can generate high revenues. You follow all the right procedures and get help from the best corporate consultants like Axiom Mark for your business setup.
What are the Advantages of Starting an Oil Business in the UAE?
If you set up the correct oil business in UAE, you will benefit from the “Black Gold” trading revenues and UAE low-income and corporate tax. This sector is crucial to the UAE economy, accounting for about 30% of the GDP. Therefore, starting an oil trading company in the UAE is considered the fastest and most profitable incorporation process.
Moreover, you can utilize other advantages, such as the UAE location and the overlapping time zones with many of the world’s most flooring oil markets. Other benefits may also include an easy visa-issuing process and other procedures.
How Can You Set Up an Oil Trading Company in UAE?
The formation process is considered one of the easiest, yet you should adhere to the steps so that everything can be noticed. The stages of setting up an oil trading company are as follows:
- Choose your Company Name:
When setting up an oil trading company in UAE, you should abide by the name conventions like other businesses. You should avoid offensive language and learn about the country’s conventions so you can best choose your company’s name.
- Find a Sponsor
If you want to set up an oil trading company in UAE, you should find a local sponsor that is an Emirati individual or a local UAE business. They will hold a 51% stake in the business. However, you may only split some profits accordingly and have all control over revenues by simply paying the annual sponsor fees for their services.
- Issue Your Company’s license
To inaugurate your company’s operations, you need a license that can be issued effortlessly and straightforwardly from DED (Department of Economic Development) in Dubai or any other Emirate, depending on the Emirate you choose for your company’s operations.
- Get additional Approvals
Besides your license, you will also need approvals from the Supreme Petroleum Council (SPC). A corporate consultant will help you finish all consents efficiently and in no time.
- Apply to Visa
You will also need to apply to have a residency visa in UAE. The procedures are easy and can finish in two or three days only.
- Open a Bank Account
The last of all procedures is to open a corporate bank account. You will need to provide all the necessary approvals and documents to open this bank account. Opening a bank account in UAE will help you with all your financial transactions.
Now, you are all set to start up your oil trading company. To wrap it up, if you want to ease the steps of company registration, you should choose a professional corporate consultant.