ARE THERE ANY LIMITATION FOR OIL TRADING BUSINESS IN UAE?

Although the UAE, especially Dubai has been a major trade partner with Iran, the country is complying with the sanctions published by the US and decreasing its trade with Iran, especially in oil. The UAE companies may face restrictions with Iran when buying oil from Tehran.

When working as an oil and oil-trading free zone company in UAE, there is a main limitation that the company cannot conduct business with the local energy market.

It is available for a local company or a foreign branch office to conduct business with the local energy market or have a link with UAE local oil reserves. But at the same time, the company is required to apply for special permits and licenses, as well as pay taxes and have a local partner.

Basically, there is no corporate tax and income tax for a free zone company. However, for a local oil company or foreign oil company the tax paid can range from 55~87%.