How to Start Oil Trading Business UAE

Crude Oil Trading in UAE

Oil and Gas trading is a key business in UAE; a handful entrepreneurs think to start oil trading business as it is known to be highly profitable. UAE takes the 4th place in exporting crude oil right after Saudi Arabia, Iran and Iraq. As a part of OPEC, UAE also carries a global responsibility to provide the supply against the global demand of crude oil and also balance the prices. Setting up the crude oil and gas business trading seems to be a right choice for most investors. While setting up the business on Dubai Mainland has its own procedures, rules and advantages, but we will discuss how to start oil trading business in Hamriyah Free zone in this article.

Why Oil & Gas Trading Company in Hamriyah Free Zone:

Connectivity

Hamriyah free zone is situated at a central coastal location with key highway access connecting to the other emirates and also additionally providing connection to Oman, Bahrain and beyond. Surrounded by coasts on the both sides i.e. the Arabian Gulf and the Arabian Sea, the free zone provides strong network through shipping across the world. Hence importing the crude oil from the neighbor GCC countries and exporting it to other countries is quite easy using the strategic location of the Hamriyah Free Zone.

100% Ownership

Setting up a business at Hamriyah free zone allows you to have a full ownership of the business and this provides more sense of control to the owner. Being a Free Zone company, an expat is allowed to own 100% of the shares in the company as a Sole owner or a partnership between multiple investors is also possible.

No Taxes

As is the case in any business in the UAE, there is 0% corporate and income tax in this business. Also, being a Free Zone jurisdictions, there is 0% custom duty on import and re-export.

Ease of Port Access

There is an access to a 14 meter deep port and a 7 meter deep inner harbor which helps ease of access in importing and exporting through sea.
 

Cost Effective Setup

Setting up an oil import, export and trading company in Hamriyah Free Zone is really cost effective and fast .Check the details from the tabular format given below:-

Setup Cost Explained

• FZE (Free Zone Enterprise) stands for single ownership or a single shareholder for the company whereas FZC (Free Zone Company) stands for more than one shareholder for a company.
• Package 1 & 2 comes with Hamriyah Free zone Virtual Business Center where Package 3 & 4 comes with 10 sqm office and the costs are included in the package.
• Package prices include license fees for 1 year, name approval charges and service charges for office electricity and maintenance charges. The visa related costs are also not included in the package prices.
• Taking a P.O.Box is optional though it is advisable to take as it is required for opening bank account and the cost of P.O. Box is not included in the package prices and it will be approximately AED 1,000/- .
• The product categories can be different product like oil, gas, bitumen, aluminum etc.
• Up gradation of package is possible any time by providing some amendment charges.

Visa Process & related costs

Documents Requirements for the Shareholder(s) and Manager

• Passport copy
• No objection letter from current sponsor(if holding a UAE valid visa) attested from Chamber of Commerce
• Visit/Tourist Visa
• Presence of the shareholder is required while forming the company.

Conclusion

Forming any business, particularly a trading business, can be very rewarding in the UAE. Forming an Oil and Gas Trading company in the Hamriyah Free Zone has its own benefits as listed above.
Flyingcolour Business Setup, Accounting & VAT Services has helped several clients setup their Oil and Gas Trading Company in the Hamriyah Free Zone, detailing all the steps, costs, regulations and legalities.
This blog post is written by Ms. Ananya. Feel free to call today for a more detail on your business setup inquiry. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.