Dubai, UAE has large oil and oil products reserves. It is a country with a high number of companies present doing business in various types of trade including oil-trading. The large international companies as well as small companies are present on the UAE oil market.
Currently, it is getting ever-more difficult and virtually impossible for the oil and trading companies to work through classic offshore jurisdictions for the reason of not being able to prove its residency in these countries.
In Dubai, the situation is entirely different, whereby it is possible to open a fully-fledged office for an oil and oil trading company with employees and operating personnel in the country and use all the advantages of favorable taxation at a rate of 0% in Dubai.
The main limitation when working with oil and oil-trading companies is the condition stipulating that the business activity must not be linked to the local energy sources of UAE.
The oil and oil-trading market of UAE has got its own conditions, if business activity is linked to the local oil reserves, the full specifics of which we won’t be able to outline in this short article. In a nutshell, various permits and licenses will be required for that sort of activity and such company will pay taxes in UAE. The local partner is also required for this type of company.
For all other business activities in the field of oil trade and other energy sources, the taxation is at a rate of 0%. This company can be opened in one of the free trade zones in Dubai, UAE and have a 100% natural a or legal foreign ownership.
The bank account for such company can be opened in UAE, where there are plenty of local and international banks present.