HOW TO OPEN A PETROLEUM TRADING COMPANY IN DUBAI

We are often asked about how to open a petroleum or oil company in Dubai or how to setup petroleum products company in Dubai in addition, of course, to general questions on how to start company in Dubai and business setup in Dubai, and business setup in UAE.

  Why Opening a Petroleum Product Company in Dubai is so Desirable?

The interest in opening a petroleum product company in Dubai is understandable. Simply put, the UAE, where Dubai is located, is an OPEC power the US-based International Trade Administration estimates to produce 3 million barrels of oil a day and hold the seventh largest proven oil and gas reserves in the world with oil reserves of 100 billion barrels.

While most of this is concentrated in Abu Dhabi, Dubai is not only the commercial hub of the UAE but also one of the most attractive investment destinations globally. Company setup in Dubai, or any other form of business setup in Dubai for that matter, is an easy, smooth and quick process (to be sure, so is business setup in UAE / company setup in UAE in general across emirates).

(There is much information online on how to start company in Dubai. Ref. our detailed articles elsewhere in our website on company setup in UAE across emirates. Those on company setup in Dubai specifically have  comprehensive guidelines on how to setup a company in Dubai)

Opening a petroleum product company in Dubai is  relatively much easier than in many other jurisdictions. Petroleum product companies and oil and gas trading companies in Dubai can run full fledged offices with staffing and other resources while enjoying not only high ease of doing business, world class infrastructure and pro-business policies but also some of the lowest tax rates in the world.

                    How to setup petroleum products company in Dubai.?

How to Open a Petroleum Company in Dubai

Oil and gas trading companies in Dubai benefit from operating under these business-friendly conditions. However , given the special strategic role of the oil and gas sector, how to open a petroleum company in Dubai involves certain conditions, considerations and dynamics.

A key stipulation is that the business activity of oil and gas trading companies in Dubai must not be linked to local energy reserves of the UAE. Any link therein  entails a slew of permits and licenses at special tax rates. A local partner is also mandatory.

Any other activity of oil and gas trading companies in Dubai not otherwise linked can be set up in any of the free zones in Dubai and enjoy 100% foreign ownership and a normal UAE bank account in addition to the jurisdiction’s regular/ standard low tax regime.

Importantly, the company must be registered with the Petroleum Products Trading Register. To quote the UAE Ministry of Energy & Infrastructure’s website:

“ A  record shall be established in the “Petroleum Substances Trading Register”, in which data relating to the authorized person, and the facilities and means of transportation that are traded through or through which local companies operating in the field of oil and gas are recorded.

The technical regulation of this law determines the form of the register, the data to be included in it, and the registration mechanism.

The competent authorities shall provide the Ministry with the data of the licensees.

Registration fees were approved by Cabinet Resolution No. (15/19) for the year 2020.”

Opening a Petroleum Product Company in Dubai with MBG Corporate Services

As a leading international consulting firm with particular expertise in business setup in Dubai, our company formation experts at  MBG Corporate Services guide you through the A-Z of your business setup in Dubai advising and guiding  you with hands-on and feet-on-ground execution at every stage of the process.

Contact us to know more about opening a petroleum product company in Dubai

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