Do you wish to start a profitable oil and gas company in Dubai? Oil and gas are at the backbone of Dubai’s economy and the UAE in general. As a matter of fact, oil is the main reason for the development and growth of Dubai over the last three decades from a small town to the vast and majestic city that is a global tourist attraction today.
The UAE government has a lot of regulations concerning the extraction, processing, and distribution of the commodity from the country’s reserves, therefore, more advisable to start an oil and gas company that deals instead with overseas oil and gas trading. If you are looking forward to starting an Oil and gas business in Dubai, look for no other professional business consultant in Dubai apart from Vigor Business set up consultant. We offer business setup ideas to all aspiring investors in Dubai. Contact us for more information.
Oil and gas trading businesses in Dubai enjoy relatively low rates of income, customs, and corporate taxation. Setting up an overseas Oil and gas trading company in Dubai also gives you access to some of the world’s main product markets.
Below are some of the steps you need to follow to set up a successful oil and gas trading company in Dubai.
- Conduct thorough research
- Pick a company brand
- Obtain the necessary paperwork
- Have sufficient funding
- Pick a local sponsor
- Pick a strategic company site
- Identify your market
- Obtain visa
- Open a corporate finance account
- Plan ahead
1. Conduct thorough research
Starting any type of company often requires an investment of a great deal of valuable time, money, and effort. , therefore, you have to channel enough time and resources into comprehensive and detailed research of the basic requirements and prospective returns on the venture before making up your mind.
Opening an oil and gas company is no different. You need to carry out personal research on what you will need to spend, what you need to have is the legal requirements of the UAE government concerning the business, and most importantly how much you stand to gain from the investment.
2. Pick a company name
Picking a company name in Dubai is a rather regulated process that follows strict conventions. The UAE government has a very strict policy restricting the use of blasphemous names and personal name abbreviations on company titles. Therefore, if you want to use your name as your company name, it has to be in full. You are also not allowed to use any names that may translate to any type of infringement or impersonation of known corporations. Your company name must also be available for registration.
3. Obtain necessary permits and paperwork
To establish any type of business in Dubai, you need a legal permit to do so. You, therefore, have to obtain a professional trade license for your Oil and Gas Company from the municipality’s Department of Economic Development or any relevant authority in the free zone.
You may as well need to obtain additional certification from the SPC (Supreme Petroleum Council), based on the type of product trade your company is involved in.
Find out any other documents you are legally required to have to run an oil and Gas company and obtain them from relevant authorities.
4. Have sufficient funding
Whether you are setting up a corporate oil business empire or just a small oil and gas company, ensure get it up and running. Poor budgeting with no backup will inconveniently run you into a dead end with you having enough finances to fund your project to completion and obtain Start a Fish Farming In Dubai all necessary requirements for your precious investment. Ensure you have enough money or reasonable sponsored funding to cover all you need as well as emergency funding for any hitches that may occur in the process.
5. Pick a sponsor
You can get a sponsor for your oil and gas company which will be entitled to 51% shares as required. Your sponsor can be an individual citizen or a corporate organization. Despite owning 51% shares, they are not entitled to most of the profit your company will make. Rather, you will need to be paying them reasonably for their involvement.
6. Pick a strategic company site
Your oil and gas company should be located where you can easily access your target market and coordinate your supply network. Depending on the type of oil or gas products your company trades, you need to pick a strategic place to set up your company that will enable you to benefit as much as possible from the available market.
7. Identify your market
Before you start an oil and gas company, you need to know exactly what kind of oil and gas products you need to deal in, so you know your target market and tailor your supply and retail availability accordingly. Know what oil product is in high demand among consumers and focus your trading resources on its availability and quality.
8. Obtain Visa
As an overseas oil and gas trader, the UAE requires you to have a residency Visa. To obtain one, you have to undergo some procedures that entail a medical evaluation, a biometric scan and a radiological chest examination. Your local trade license enables you to sponsor some of your other related individuals for a visa, including family members, staff or any other dependent.
9. Open a corporate finance account
You will be required to open a corporate bank account to conduct your business transactions in Dubai. Several banks in Dubai can offer you these services as an overseas trader on reasonable terms. Once you open a corporate account, you can then freely conduct business transactions.
10. Plan ahead
You need to have a solid business plan to grow and expand your oil and gas company. Hire trusted personnel, and provide impressive quality products and services to all your clients. As an entrepreneur, you need to anticipate potential losses and have a solid backup plan of recovery and insurance. This way, you safeguard your company from potentially collapsing, while focusing on growth.
Starting an oil and gas trading company in Dubai is a lucrative and immensely beneficial prospect that few goal-oriented entrepreneurs can resist. Taxation for overseas oil and gas trading is reasonably low, and company incorporation into the Dubai system is fast and less costly.
As long as you are involved in trading products outside the local oil reserves, you can start an oil and product trading company easily in Dubai with the necessary licensing, paperwork, and visa. Your oil and gas company has high chances of success and growth in Dubai provided you identify your market, pick a strategic location, invest well and plan ahead.