Does an Abu Dhabi LLC entity need a license to provide oil and gas services in Ras Al Khaimah?

You cannot provide oil and gas services in Ras Al Khaimah without creating a branch or separate legal entity registration there, as doing so would violate local regulatory requirements governing such operations.

Abu Dhabi Trade License Limitation:

Your Abu Dhabi LLC license allows you to operate primarily within Abu Dhabi.

Providing services in Ras Al Khaimah is possible, however, Ras Al Khaimah authorities may require you to hold a valid local permit or commercial license if you are carrying out ongoing or fieldwork activities there.

Oil & Gas Sector Regulations:

The oil and gas sector is highly regulated. You may need specific approvals from Ras Al Khaimah authorities, such as:

- Ras Al Khaimah Economic Zone (RAKEZ).

- Ras Al Khaimah Municipality/Department of Economic Development (RAK DED).

- Ras Al Khaimah Petroleum Authority (depending on the type of services).

Certain oil field activities might require specific site permits or approvals from the operator (e.g., RAK Gas).

Branch Office Consideration:

If your work involves a long-term physical presence in Ras Al Khaimah (e.g. setting up a project base, maintaining equipment, or field operations), you may need to open a branch office.

A branch office is an extension of your Abu Dhabi LLC and does not require new ownership but requires registration with RAK authorities.

Temporary or Occasional Services:+

If your services are occasional, short-term, or remote (e.g., consulting or supply services), you can often operate under your Abu Dhabi license, but a No Objection Certificate (NOC) from RAK authorities or the client may still be required.

For site access and operations in oil fields, safety permits and security clearances are mandatory, regardless of company registration.

Recommended Actions:

Consult RAK DED or RAKEZ for licensing requirements based on the exact nature of your services.

Check with RAK Petroleum Authority or RAK Gas if sector-specific approvals are required.

Evaluate whether a branch office is needed for long-term or on-site operations.

Consider seeking legal advice from GS Advocates and Legal Consultants for regulatory guidance and licensing assistance.

Your Abu Dhabi LLC license, especially if it includes the relevant oil and gas service activities, generally allows you to operate across the UAE.

There's no strict requirement to have a separate license in each emirate for most business activities.

Dear Questioner,

Thank you for your inquiry regarding the provision of oil and gas services in Ras Al Khaimah (RAK) without establishing a separate legal entity or branch.

Based on the legal framework governing businesses in the UAE, including the regulations specific to oil and gas services, here is a detailed response:

Operating in Ras Al Khaimah without a Separate Legal Entity: In general, your Abu Dhabi LLC can provide services in Ras Al Khaimah without setting up a separate legal entity, provided you comply with the local regulations and requirements set by the authorities in RAK.

This can be done by ensuring that your company registers with the appropriate governmental bodies and obtains the necessary permits for operating in the oil and gas sector.

Branch or Representative Office Requirement: While you may not need to establish an entirely new legal entity, if your business intends to operate continuously in Ras Al Khaimah, it might be necessary to register a branch or representative office in the emirate.

This is dependent on the scale and duration of your operations.

Local Approvals and Permits: Given the regulated nature of the oil and gas industry, you will need to obtain approval from the relevant authorities in Ras Al Khaimah to ensure compliance with local health, safety, and environmental standards.

The services provided in RAK may require specific licenses, such as an operational permit, depending on the scope of your activities.

Trade License Considerations: If you plan to provide ongoing services in Ras Al Khaimah, you may need to amend your existing trade license or obtain a new license within the emirate to ensure that you are fully compliant with local regulations.

Tax and Regulatory Compliance: Depending on the nature and volume of services provided in Ras Al Khaimah, local tax and regulatory obligations may arise.

These could differ from those in Abu Dhabi, so it’s crucial to confirm whether any additional taxes or compliance steps are required when operating in RAK.

Please feel free to contact us should you require assistance in obtaining the necessary permits or further clarification on the matter.

Kind regards,

Mohammed Salah

Legal Consultant

Thank you for reaching out with your inquiry. As an Abu Dhabi LLC, your ability to provide oil and gas services in Ras Al Khaimah without establishing a branch or separate legal entity depends on multiple factors, including the specific nature of the services, contractual requirements, and regulatory approvals in Ras Al Khaimah.

In many cases, companies must either register a branch in Ras Al Khaimah or obtain the necessary permits from the relevant authorities, such as the Ras Al Khaimah Department of Economic Development (RAK DED) and the RAK Petroleum Authority, if applicable.

However, there are alternative structures that may allow you to operate without full registration, such as subcontracting or obtaining special permits.

To determine the most efficient and legally compliant approach for your business, I recommend a detailed review of your service agreements and regulatory obligations.

Feel free to contact me via WhatsApp or phone to discuss your options further.

Best regards,

Suhail Rana

Greetings,

As an Abu Dhabi LLC, you are generally allowed to provide services in other emirates, including Ras Al Khaimah, without creating a separate legal entity.

However, depending on the nature of the oil and gas services and the specific requirements of Ras Al Khaimah, you may need to register with the local authorities or obtain specific permits.

For compliance and to avoid any legal complications, it is advisable to consult with a legal expert regarding the necessary approvals and licenses required for operating in Ras Al Khaimah.

Book a consultation with Future Vision for Advocacy and Legal Consultancy to ensure a smooth process or appoint us to handle the registration and legal formalities for you.

We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.

To contact us, you can call or WhatsApp us.