Beginner’s Guide on Starting an Oil and Gas Business in the United Kingdom
The oil and gas industry provides approximately half of the United Kingdom’s energy needs. Thus, it is a very promising business sector. If you have an interest and talent for it, here’s all the information you need for starting an oil and gas business in the United Kingdom.
The UK’s oil and gas industry is in the global top tier, and 2020 statistics indicate that it was worth GBP11.3 billion. Millions of people make their living here working in the sector. A significant percentage of the energy consumption in the UK is from oil and gas. Oil provides more than 90% of the fuel for transportation needs. The petrochemical sector also depends mainly on oil and gas to make plastics, domestic appliances, and other products. The oil and gas industry offers many opportunities for consultants, encompassing, amongst others:
- Oil and gas explorations
- Refinery and extraction
- Trading and technology solutions
- Supply chain and logistics
- Corporate Social Responsibility (CSR) and green initiatives
- Quality Control
The oil and gas industry is quite specialised; hence, good industry experience and qualifications will stand you in good stead. Furthermore, if you are thinking of starting an oil and gas consultancy business, registering with the Institute of Consulting, an organisation of the Chartered Management Institute (CMI), may also be advisable.
You should register your oil and gas business, and the process depends on the structure you choose. If you are not aware of UK company registration procedures, get in touch with the experienced team of 3E Accounting, who will guide you in every possible way. Sole traders, limited companies, and partnerships are all established differently. A well-written business plan will help you decide which one works best for your business needs and budget.
Steps to Starting an Oil and Gas Business in the UK
- First, you will need to find a suitable name for your business and provide a registered business address.
- It is also mandatory to register your business for tax with HMRC within three months of operations. Depending on your annual turnover, you may also need value-added tax (VAT) registration.
- Opening a business bank account will help to distinguish your personal and business expenses.
- Hire a good accountant to keep a systematic record of your financial transactions, income and expenses.
- Get a website with an attractive design to enhance your credibility and get more customers.
- As buying commercial premises may strain the budget, consider renting serviced office space or starting out as a home-based business. The money you save will be better spent on a great website design and domain name for your business.
- Other considerations include outsourcing your human resource department and getting audits done to meet your financial year-end filing.
You can rely on 3E Accounting’s expert team to provide you the best company incorporation services.
Licences and Permits
Some licences required for oil and gas are production licences, offshore innovate licence, landward production licence and seaward and landward exploration licences. You may need legal help to find if you need more licences based on your operations. Or, you can check out the UK Government website for more information. If your focus area is on operations, then you may need health and safety certificates, etc.
For specific guidance about starting an oil and gas business in the UK, get in touch with 3E Accounting, the most reliable United Kingdom corporate service provider. We are company formation specialists with years of industry expertise in providing seamless enterprise solutions. With partners and affiliates all over the world, we offer comprehensive end-to-end business packages for the discerning entrepreneur. All our services are fully digitalised to ensure your business pivots on transformational innovation and technology. Contact 3E Accounting today to start your entrepreneurial journey with industry professionals.