The rise of blockchain technology and digital currencies has opened up vast opportunities for entrepreneurs and investors wanting to establish a virtual asset company in Dubai. The UAE has some solid legal foundation to support businesses involved in cryptocurrencies, NFTs (Non-fungible Token), and other digital assets.

Also just like other businesses in Dubai, virtual asset companies benefit from a tax-free business environment with no corporate or income tax. This makes it easier for entrepreneurs to operate in a compliant and secure manner.

If you’re considering launching a virtual asset company in Dubai, this guide will give you insights into all you need to establish your company.

Ideal Areas in Dubai to Establish a Virtual Asset Company

Dubai offers various Free Zones and onshore options, each having its own advantages for businesses dealing in virtual assets. Choosing the right location will be crucial in this regard.

1.Dubai Multi Commodities Centre (DMCC)

The DMCC is one of the most popular Free Zones for businesses focused on blockchain and virtual assets. It offers 100% foreign ownership, tax-free environment and access to a global blockchain community. The only drawback is that one has limited access to Dubai’s mainland market.

2.Dubai International Financial Centre (DIFC)

The DIFC is a financial spot that offers a secure regulatory framework for businesses dealing with financial services related to virtual assets. The DIFC has set up a detailed regulatory structure under the Dubai Financial Services Authority (DFSA) which overlooks the  growth of blockchain and virtual assets companies.  There are stringent legal and regulatory frameworks for financial security and the set up cost is slightly more as compared to other Free Zones.

3.Dubai Silicon Oasis (DSO)

Dubai Silicon Oasis is a smart city which supports businesses operating in technology sectors, including blockchain and virtual assets. The benefits include cost-effective licensing and access to advanced technological infrastructure.Dubai Silicon Oasis is a smart city which supports businesses operating in technology sectors, including blockchain and virtual assets. The benefits include cost-effective licensing and access to advanced technological infrastructure.

4.Meydan Free Zone

This Free Zone is ideal for startups, small and medium-sized virtual asset companies. It offers flexible business  solutions so businesses can easily scale their operations. It offers lower startup costs.

How to Start a Virtual Asset Company in Dubai? 

The first step is to identify what specific virtual asset activities you should execute, whether crypto trading, blockchain consultancy, NFT trading, and more. Next choose between a Free Zone company or an onshore entity. If you plan to operate globally and not target the UAE mainland, a Free Zone structure will be more suitable.You will need to consider factors such as regulatory framework, infrastructure, and cost when choosing your Free Zone. The next step includes registering your company with the relevant authorities by providing the necessary documentation. Complete the registration process by  selecting a company name, securing office space (physical or virtual) and obtaining preliminary approvals.

To legally operate a virtual asset company in Dubai, you’ll need a special license from the Free Zone authority, such as the DMCC Crypto License or DIFC’s Financial Services License. Also, depending on your business activity, you may need additional approvals from regulatory bodies like the Dubai Financial Services Authority (DFSA) for financial services involving digital assets.

After obtaining the business license, open a corporate bank account in Dubai.

Also virtual asset companies must comply with regulations such as Anti-Money Laundering (AML) and Know Your Customer (KYC) laws. So make sure that your company fulfills this and operates transparently to avoid legal complications.

Documentation Required for a Virtual Asset Company in Dubai

To establish a virtual asset company in Dubai, you need to submit the following key documents:

• Application Form
• Passport copies of the business owner(s) and shareholder(s) must be submitted.
• A copy of your UAE residency visa (if applicable) or entry stamp.
• Business Plan outlining the scope of your activities.
• Trade Name Reservation:
• Memorandum of Association (MOA)
• Office Lease Agreement

Conclusion

Starting a virtual asset company in Dubai is a great way to position your business in a global hub that is committed to innovation. However, as the virtual asset industry continues to evolve, staying informed about regulatory changes is crucial for long-term success. Try to avoid  

stagnation in business by offering new products and staying connected with global trends. Participating in Dubai’s tech incubators and blockchain events will keep your company ahead of the curve.