The optimal work plan of a fuel trading company

In the context of market reform, more and more questions arise regarding the fuel trade  by enterprises that have serious inconsistencies of the material and technical base with the legislation.

The start of the licensing procedure for the petroleum products enterprises took place in the summer of 2019, but today not all enterprises have brought their activities into compliance and received the necessary licenses for fuel trading operations.

We will talk about our practice in this area and ways to solve painful moments.

Related article: Obtaining permits for enterprises whose activities are related to fuel

The essence of the matter

Not so long ago, we were approached by an enterprise that has exceeded their licensing time limits. At that time, they  had to urgently sign agreements with state and foreign counterparties, so they could not carry out their activities without a license.

The Client did not have time to collect a full package of documents to obtain a wholesale license with a place of sale and go through all the bureaucratic procedures. In addition, according to the law, the licensing department of the State Tax Service reviews documents within 20 calendar days, which adds a delay before starting work, so our Client could not wait that long and contacted us.

Our service

Before starting work, we held a preliminary consultation for a more detailed understanding of the situation and identification of absolutely all the subtleties of the circumstances of the Client.

As a result, we have developed the simplest and most effective way for the enterprise to operate, which could be implemented as soon as possible:

  • find a counterparty that would have a license for the wholesale trade with a place for trading;
  • obtain a license for your company for the wholesale fuel trade without a place of sale;
  • sign the agreements we have developed between all parties necessary for the supply of fuel.

Next, it was necessary to ensure that all of the above stages and activities of the Client were completed in the real conditions of the existence of Ukrainian business. Our goal was to develop the most correct and safe interaction scheme that could “buy some time” for our Client to purchase the necessary equipment and obtain other permits.

Related article and video: In which cases and what for a fuel license is necessary?

Result of our work

Thus, the Client used the services of a counterparty to fulfill their own obligations under the contract, meanwhile, waiting for a license.

The speed with which we obtained a license for our Client provided them with the opportunity to sign contracts after they had made delivery and stayed within the framework of the current legislation.

Although the introduction of market licensing introduces serious changes in the activities of many entrepreneurs, today medium and small enterprises have a large number of diverse opportunities for conducting their activities with the help of a reliable legal partner.

If you need help with this matter, you can contact our lawyers.

Publication date: 10/09/2019

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