Over the past several years, the United Arab Emirates (UAE) has emerged as a global technology and innovation hub with an emphasis on blockchain. One of these is the progressive UAE blockchain regulations that make the country aim to become a place that fully commits to turning into a “Smart City” and allows and helps blockchain businesses grow and thrive.
This article will outline the basic steps to set up a blockchain company in the UAE and also explain how Recordac is the best service provider to assist you in setting up your blockchain company.
Understanding UAE Blockchain Regulations
Dubai launched the Virtual Asset Regulatory Authority (VARA) in 2022, and this only focuses on digital asset regulation. VARA is in charge of facilitating and supervising the issuance and sale of virtual currencies, defining their legal characteristics and private-based nature, and transferring, managing, and controlling those around them.
To achieve its goals, VARA has devised a comprehensive digital asset framework that acts as a set of rules governing a wide range of activities and services, such as custody, broking, and exchange services.
VARA has become the world’s first independent regulator for digital assets, attracting a range of new and incumbent cryptocurrency businesses to Dubai. This means the emirate now has one of the most thriving and active virtual currencies in the world today.
VARA has overseen the entry of several industry giants in the UAE, such as Binance and Laser Digital. That means hundreds more crypto businesses will start looking for regulation in the year ahead.
Furthermore, the UAE Securities and Commodities Authority (SCA) regulates floating coins over a more general framework. In recent years, the SCA has issued its share of regulations, foremost among which is that anyone who wants to engage in crypto-related business activities in the UAE has to secure the right license.
Certain services, such as providing virtual asset platforms and virtual asset management, exchange or broking, virtual asset wallet, or all virtual token trading, require licensing.
Steps to Incorporate a Blockchain Company in UAE
The process of starting your own crypto business in the UAE will differ according to what kind of activities you plan to engage in. Nevertheless, the creation of a new company typically includes five key steps.
It is just like any other important business endeavor; as such, we need to know each step of the process. So it’s a good idea to work with a local expert like Recordac. We have a dedicated team that can help you at each step.
Step 1: Choose Your Business Activity
First, you have to pick the type of crypto business you want to start. This could include broking or exchange activities or trading with a wallet or platform that deals in a token or tokens.
The Recordac team will help you determine which activities are best for your business based on compliance with UAE blockchain regulations.
Step 2: Select Your Location
Then, choose where you want to start your business. Dubai has many free zones for crypto-related businesses, and you may also decide to set up in another emirate.
Your operation should be in the right location, depending on your line of business, company size and the range of services and amenities you need.
Step 3: Choose a Company Name
So, with hundreds of crypto businesses sprouting up in the UAE, you must pick a name that makes it easier for you to be found. The UAE also publishes specific criteria for naming in its businesses. Your name can not include offensive or blasphemous commentary or contain the name of an existing company or entity.
Step 4: Prepare Your Documents
Your dedicated contact at Recordac now helps you put together all the documents you will need to submit. This will include your completed application form, passport copies, visa information, and a lease agreement (or business plan) if necessary.
Step 5: Obtain Your Trade License
Your application will once again be handled by the Recordac team, who will work with all appropriate regulators and government bodies as required.
To operate a crypto business in Dubai, you need a trade license and a pass from the Securities and Commodities Authority (SCA) or Virtual Asset Regulatory Authority (VARA). When all of these are in hand, you are ready to start trading in the UAE.
Benefits of Starting a Blockchain Company in the UAE
Setting up a blockchain company in UAE offers distinct benefits:
- Tax Incentives: With 100% on personal and corporate income tax, the UAE provides a tax-friendly environment for businesses.
- Access to Innovation and Technology: The UAE is one of the governments backing the development of the tech infrastructure behind blockchain, and several initiatives are underway to promote innovative blockchain solutions.
- Strategic Location: As a global business hub, the UAE offers businesses unmatched access to the Middle East, Asia, and the rest of Europe.
With Recordac’s expert guidance, you can fully take advantage of the benefits of Blockchain company incorporation. Head on over to Recordac to find tailored services that include everything a company doesn’t want to start or continue to do!
Why Choose Recordac for Blockchain Company Incorporation?
To start a blockchain business in UAE, one must understand the regulatory framework, compliance measures and market requisites. We at Recordac offer an end-to-end service model that includes business planning, licensing, office setup, and legal compliance.
UAE blockchain regulations are what Recordac has experienced for years to help blockchain businesses with ease.
- Personalized Guidance: Recordac provides tailored advice and help wherever you are in the licensing and operational support process.
- Streamlined Licensing and Registration: The professional team at Recordac handles all your documentation, paperwork, legalities, and document submissions so that your UAE company’s registration for blockchain is hassle-free.
- Ongoing Support: With Recordac post incorporation, you remain a trusted partner as they assist in compliance and expansion strategies to bring your business to the UAE’s growing market.
Final Thoughts
The UAE’s dynamic business environment provides a great opportunity for those looking to start a blockchain company. Understanding the UAE blockchain regulations and having gone through the necessary steps for incorporation will help you successfully navigate the process.
As your partner, starting a blockchain business in the UAE using Recordac will be as simple as it gets! The ideal companies for anyone who seeks to enter this attractive market are those that specialize in blockchain setup in the UAE and have full control over client success. With Recordac, you are able to turn your blockchain vision into reality.