The UAE is one of the greatest exporters of oil and gas in the Middle East and in the world. A large portion of energy exported by the UAE consist of crude petroleum which goes mostly to neighboring countries, but also to states on other continents such Australia and Europe.
Foreign investors who want to open a company in the energy sector with the purpose of extracting crude petroleum can set up a business in Dubai following the Federal Decree No.3 of 2004. Our Dubai company formation agents can offer information on the laws related to the extraction of crude petroleum.
Foreign investors must have a local partner if they want to open a company in Dubai with the purpose of extracting crude petroleum. They must also appoint a local agent who carries out the registration process of the company, followed by the application for the necessary licenses which allows them to extract and process petroleum.
The main bodies governing the oil and gas industry in Dubai are the Ministry for Energy and Water, the Dubai Supreme Council of Energy and the Department of Petroleum Affairs.
Investors who want to open companies in Dubai with the purpose of extracting crude petroleum must first obtain one of the general business licenses followed by the application for a concession license which allows the company to extract petroleum.
In order to obtain a concession, a Dubai company must first carry out an environmental impact assessment. Also, foreign companies may enter into joint ventures or any other types of projects with local companies in order to be allowed to extract crude petroleum in Dubai.
Foreign investors setting up Dubai companies for the extraction of crude petroleum must also take into consideration the taxation of such activities in the Emirate. These are usually taxed at rates agreed through the concession contract. Through the same agreement other withholding taxes are established.
For information on the taxation of oil and gas companies, please contact us. You can also rely on our company incorporation consultants in Dubai for assistance with the company registration procedure.