If you’re about to start Oil trading business in Dubai, there is nothing to be concerned about. The UAE ranks 7th among the top 10 oil-producing nations. This business can make you great profits, more than any other.
This blog will explain how to start Oil trading business in Dubai. You can learn more about the practicalities and benefits of oil trading in Dubai if you need professional help.
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The benefits of starting Oil trading business
While most entrepreneurs are aware of the benefits of oil trading, it can still be beneficial to your business’ growth if you don’t know. Below are some of the benefits of oil trading:
- Profits can be higher than in any other industry.
- It has low corporate and customs taxes, which is its main advantage.
- It can easily be traded abroad.
- You can also engage in any commercial activity that includes UAE oil reserves.
- It is possible to set up a company quickly and with high reliability
- The government supports the Oil trading.
- You can build and connect with key oil marketers.
- Profits and capital can be fully repatriated.
- Dubai does not limit any currency.
- Transport facility that is seamless and has a geographic location.
How to start oil trading business in Dubai?
A Business Setup Consultant in Dubai will make it easy to start oil trading business. It might be a good idea to seek professional help if you’re just starting your business. These are the steps to help you start an oil trading company in Dubai.
1. Choose a name that suits your needs
company. You cannot just randomly name an oil trading firm. There are rules that must be followed when naming the company. No racial or religious insults should be used. It is not acceptable to use offensive language. You should not attempt to imitate any company name, even if it is not present in the UAE.
This will stop any potential conflicts. It is recommended that you submit three names. There are many online tools that will allow you to search for names that may not have been used before. If you follow the guidelines set by the government, this is an easy step.
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2. Find a local sponsor to help you start oil trading business
Foreigners cannot have full business control in the UAE’s industries. This is because the UAE regime doesn’t allow them to. They are particularly concerned about the oil and gas sectors, which are vital to the country’s wealth.
You will need to find a local sponsor in order to share ownership of the oil trading company. Sponsors can be Emiratis or UAE-based businesses. You don’t need to be part of the profits, but you can take all the decision-making responsibilities. However, you will need to pay an annual fee for the sponsorship.
3. Procedure for submitting a license application
This is an essential step in starting an oil trading business in Dubai. Each step has its own requirements, but you must apply for a Dubai Department of Economic Development business trade license.
The Department of Economic Development Dubai will require you to complete an application form. This form includes basic information about your business. If you have the initial approval, you can move on to the next step.
4. Additional approval
You will need to get approvals from several agencies and authoritative bodies depending on your business activities.
The Supreme Petroleum Council (SPC) is the authority that grants approvals to oil trading businesses in the UAE. These approvals are easy to obtain if you work with an agency when setting up your business.
5. Submit your visa application
A resident visa is required to work in the UAE or to start a business. The UAE government announced a long-term golden visa for residents.
This visa is being sought by many investors, entrepreneurs, and individuals. After you have obtained the license to trade in business, you can sponsor visas for employees.
6. Open a bank account
The last step in starting an oil trading business in Dubai is opening a bank account at a cooperative bank. Oil is an essential aspect of many businesses.
Oil is an essential commodity for entrepreneurs worldwide. This is because oil prices are volatile and the demand is constantly rising. It’s a good idea to start an oil trading company.
