IFZA crypto license
The IFZA free zone is a promising opportunity to get a crypto license quickly and profitably, without the need for share capital. Gofaizen & Sherle provides professional support for IFZA crypto license with a turnkey solution and guaranteed results within 2 weeks
If your goal is to strengthen your presence in the UAE market, you may consider registering your cryptocurrency company in the IFZA.
In 2018, the International Free Zone Authority (IFZA) was added to the list of free zones in the Emirates. This zone allows entrepreneurs to register companies, branches, and subsidiaries. Initially, the zone only issued licenses for trade, industry, and services, but after signing an agreement with Dubai Silicon Oasis Authority, the opportunities have expanded to the cryptocurrency sector as well.
IFZA actively cooperates with other free zones in Dubai and around the world, creating a favorable ecosystem for the development of businesses in the crypto sphere. This allows entrepreneurs to move easily among zones and take advantage of the opportunities available in each zone to maximize their business potential.
Companies holding an IFZA crypto license can legally conduct commercial activities using their crypto assets and transactions using cryptocurrencies, including exchange and storage. Obtaining a crypto license requires compliance with certain requirements and passing the registration procedure by IFZA rules and regulations: availability of a business plan, financial guarantees, and compliance with KYC and AML policies. On the other hand, having such a license has several advantages, such as favorable taxation and prospects for business development.
Find more information about the Crypto License in IFZA Free Zone
Advantages of IFZA Crypto License
Economic Benefits:
IFZA Dubai offers cost-effective options for setting up your business, allowing you to achieve an optimal cost/benefit ratio. Offers competitive rates for services and preferential treatment for entrepreneurs, which helps to reduce operating costs and increase the profitability of operations.
Trade and tax privileges:
The conditions for companies in IFZA are 0% tax on profits and dividends for companies and exemption for individuals from taxation of income from international activities. There are no currency restrictions and no import or export taxes. IFZA provides 100% repatriation of profits and capital, allowing you to move money freely between countries and optimize financial flows.
Fast business start-up:
Registering a company with IFZA Dubai allows you to get your business up and running quickly due to the lack of a complicated process and additional obligations. It will save time and allow companies to focus on growing their business and achieving success.
Remote management:
Setting up a company in IFZA Dubai does not require shareholders to be physically present and have a local office, giving you the flexibility and ability to conduct business from anywhere in the world. You can choose to work from a virtual office or use shared workspaces, saving on office rental costs.
Expanding Borders:
IFZA allows you to work outside the UAE, opening up access to international markets and expanding the potential of your business. It also allows you to collaborate with companies in other free zones and the UAE mainland.
Full ownership:
You have 100% ownership of your company, giving you full control and flexibility in decision-making. You can determine the direction of business development, make decisions according to your goals and adapt to changing market conditions without interference.
Easy bank account opening:
IFZA makes it easy for your company to open a corporate account, making financial transactions easy and accessible.
License for crypto related activity in IFZA free zone
Full set up of crypto company with complete infrastructure, connection to KYC providers and accounting services.
- Full turnkey company formation
- Basic Corporate documents
- License
- Co-working desk
- Visa assistance (Emirates ID, Medical test)
- Corporate account opening assistance
- Individual AML/KYC Policy
- Set of standard docs necessary for website
- AML Officer
- Business Plan*
- KYC/KYT integration and provider principle adaptation
- Accounting software license and development of individual accounting rules
Registration under the full regulatory requirements. Company is ready for operations
- Full turnkey company formation
- Basic Corporate documents
- License
- Lease Agreement
- Visa assistance (Emirates ID, Medical test)
- Corporate account opening assistance
- Individual AML/KYC Policy
- Set of standard docs necessary for website
- AML Officer
Registration under the minimum regulatory requirements
- Full turnkey company formation
- Basic Corporate documents
- License
Request more information about the Crypto License in IFZA Free Zone
Requirements to obtain a IFZA crypto license
- Obtain and fill out the license form from the Department of Economic Development in Dubai
- Provide all certified copies of the founders passports and Utility bills
- Provide CVs of all shareholders and directors
- Provide a clean cryptocurrency wallet record with no suspicious transactions
- Provide business model description/business plan
- Comply with KYC and AML policies
- Comply with anti-money laundering regulations
- Ensure the protection of clients financial information
- Provide data on the structure and projected profits of the company
- Provide data on the origin of funds at the request of the regulator
Process and timeline for obtaining a IFZA crypto license
COLLECTION OF PRELIMINARY DOCUMENTS + COMPANY NAME AND ACTIVITY APPROVAL
Stage 1
Documents required:
- Preferred company name
- Passport copies from all shareholders and directors
- Utility bills from all shareholders and directors
- CVs of shareholders and directors
- A business model of the company (brief description 1-2 A4 pages
REGISTRATION AND LICENSING PROCESS
Stage 2
- Determination of suitable license type
- Submission of application to IFZA
- Company registration
- License approval
- Preparation of corporate documents
CORPORATE ACCOUNT OPENING
Stage 3
- Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies
- Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
- Initiation of the onboarding procedure simultaneously in 2-3 crypto friendly Payment Institutions
- Guiding the Client’s company through the entire process of opening an account
Documents Required to Obtain a Crypto License in IFZA
To get an IFZA crypto license, you need to prepare a package of documents.
Individuals must provide:
- A copy of their passport as an identification document
- Photos of each shareholder that match the passport size
- If the individual is a resident of the UAE, a copy of the Emirates ID must be provided.
- A copy of a visa or proof of entry into the UAE
Notarized documents to be provided by legal entities:
- A copy of the resolution passed by your company’s board of directors confirming your intention to become a shareholder in IFZA Dubai.
- A copy of your company’s memorandum and articles of association reflecting its legal structure and basic operating rules.
- A copy of the relevant authorities’ commercial license confirms your right to conduct business activities.
- A copy of your company registration certificate, issued by the competent authorities, confirming your legal existence.
Keep in mind that specific requirements may vary depending on current IFZA regulations and policies.
Opening a cryptocurrency business in the IFZA free zone
IFZA (International Free Zone Authority) contributes to the development of free zones and acquires the status of a leading investment center in the UAE. In collaboration with (DSOA) Dubai Silicon Oasis Authority, IFZA offers personalized packages for entrepreneurs wishing to register their companies.
In October 2020, DSOA and IFZA signed an agreement that expands business opportunities in IFZA through a partnership with DSO. This agreement opened the door for collaboration with many high-tech companies based in locations such as DSOA, the Dubai Digital Park (DDP), and the Dubai Technology Campus for Businessmen (Dtec).
IFZA became even more attractive to entrepreneurs in May 2021 with the opening of the crypto center. The IFZA cryptocurrency license presents unique opportunities for cryptocurrency businesses and investors: it creates co-working spaces, organizes training events, and supports new cryptocurrency startups.
Gofaizen & Sherle is ready to help you launch your crypto business in the IFZA-free zone for guaranteed results.
IFZA regulations and rules
IFZA plays an important role in regulating businesses operating in the zone. This organization has developed separate rules and regulations that are mandatory for all companies conducting their crypto business in IFZA. Its goal is to create a favorable and ethical business environment that ensures transparency and fairness.
The IFZA rules and regulations are designed to protect the interests of companies, employees, and investors. They contain several important requirements and obligations that companies must familiarize themselves with and strictly comply with:
- Registration and licensing:
Businesses are required to register with IFZA and obtain an IFZA crypto license. This ensures that the business can operate legally and operate legally within the free zone. - Local sponsor or agent:
Companies wishing to establish a business in IFZA must have an agent or sponsor with UAE residency who will assist them with organizational and legal matters. - Financial Accounting:
Businesses must keep up-to-date, tax, and financial monitoring records to ensure transparency and accountability in financial transactions.
- Compliance with Laws:
Companies must strictly comply with UAE regulations and laws, including the provisions of labor laws, environmental regulations, health and safety regulations. - Respect for Intellectual Property Rights:
Businesses are required to respect intellectual property rights and avoid any activity that may violate those rights. This includes the prohibition of plagiarism, copyright infringement, and the illegal use of innovative developments without the permission of the right holder. IFZA attaches great importance to the protection of intellectual property to create a favorable environment for the development of innovative and technological companies. - Confidentiality of Information:
Companies working for IFZA must ensure the confidentiality of any information received. This includes the data of customers, partners, employees, and other parties with whom the company may interact. Maintaining confidentiality is an integral part of ethical business conduct. - Compliance with IFZA rules and regulations: Businesses are required to follow all rules and regulations established by the IFZA concerning the use of amenities and benefits in the free zone. This includes rules on the use of infrastructure, access to services, events, and compliance with general quality standards.
Cryptocurrency businesses in the IFZA must comply with additional requirements, such as customer identity verification (KYC) and anti-money laundering (AML) compliance. IFZA takes into account international standards and best practices in the regulation of cryptocurrency transactions to ensure a high level of security and trust in this area.
IFZA has the power to impose fines or sanctions on businesses that violate its rules and regulations. In case of serious violations, IFZA has the right to revoke the license of a company and demand that it terminate its activities in the free zone. This promotes discipline and compliance with the standards necessary to maintain IFZA’s reputation and attract the trust of the business community and investors.
In its ongoing work to improve its rules and regulations, IFZA takes into account the rapid development of technology and changes in the cryptocurrency industry. The organization monitors global trends and new regulatory approaches to ensure an efficient and innovative business environment at IFZA.
- Compliance with Laws:
Companies must strictly comply with UAE regulations and laws, including the provisions of labor laws, environmental regulations, health and safety regulations. - Respect for Intellectual Property Rights:
Businesses are required to respect intellectual property rights and avoid any activity that may violate those rights. This includes the prohibition of plagiarism, copyright infringement, and the illegal use of innovative developments without the permission of the right holder. IFZA attaches great importance to the protection of intellectual property to create a favorable environment for the development of innovative and technological companies. - Confidentiality of Information:
Companies working for IFZA must ensure the confidentiality of any information received. This includes the data of customers, partners, employees, and other parties with whom the company may interact. Maintaining confidentiality is an integral part of ethical business conduct. - Compliance with IFZA rules and regulations: Businesses are required to follow all rules and regulations established by the IFZA concerning the use of amenities and benefits in the free zone. This includes rules on the use of infrastructure, access to services, events, and compliance with general quality standards.
Cryptocurrency businesses in the IFZA must comply with additional requirements, such as customer identity verification (KYC) and anti-money laundering (AML) compliance. IFZA takes into account international standards and best practices in the regulation of cryptocurrency transactions to ensure a high level of security and trust in this area.
IFZA has the power to impose fines or sanctions on businesses that violate its rules and regulations. In case of serious violations, IFZA has the right to revoke the license of a company and demand that it terminate its activities in the free zone. This promotes discipline and compliance with the standards necessary to maintain IFZA’s reputation and attract the trust of the business community and investors.
In its ongoing work to improve its rules and regulations, IFZA takes into account the rapid development of technology and changes in the cryptocurrency industry. The organization monitors global trends and new regulatory approaches to ensure an efficient and innovative business environment at IFZA.
Taxes in IFZA free zone
IFZA Dubai offers attractive tax advantages: 0% tax on profits and dividends for companies, exemption of individuals from taxation of income from international activities, 100% repatriation of profits and capital, no currency restrictions, and no import and export taxes. This creates a favorable environment for business and optimization of financial flows.
However, according to the Public Notice of the Ministry of Finance and the Federal Tax Administration, which was published on the official IFZA website as of June 1, 2023, the following UAE corporate tax rates apply to entities registered in the free zone:
- 0% on qualifying income
- 9% on taxable income exceeding AED 375,000
This means that companies will only be taxed at 9% on that portion of their taxable income that exceeds AED 375,000. Income below this threshold will be exempt from taxation.
Under the tax provisions of the UAE Corporate Tax Law, the taxable base depends on the taxpayer’s classification.
- For “residents”, tax applies to income derived from both domestic and foreign sources based on their place of residence.
- On the other hand, “non-residents” are taxable only on income derived from sources within the UAE, excluding income from foreign sources.
Under the new legislation, certain types of income paid to non-residents may be exempt from income tax in the UAE, which means a zero tax rate is applied. Due to this, no income tax registration and filing obligations arise for either UAE businesses or foreign recipients of income derived from the UAE.
It is important to note that income tax does not apply to transactions between UAE resident individuals. This means that for domestic transactions between residents, income tax will not be taken into account.
Reporting:
- All taxable persons, including those from the free zone, are required to register for corporate tax and obtain a unique corporate tax registration number. In certain cases, the Federal IRS may require certain exempt individuals to register for corporate tax as well.
- Taxable individuals must file a corporate tax return for each tax period within 9 months after the end of the applicable period. This is usually the same deadline for any corporate tax applicable to the tax period for which the return is filed.
As you can see, there are many nuances and clarifications in the law. To find out whether your company falls under the new UAE tax legislation – we advise you to consult Gofaizen & Sherle
FAQ about IFZA crypto license
How much does it cost to obtain an IFZA crypto license?
Initial licensing fees for IFZA crypto licensees are 11,500 dirhams. The price also depends on the package you choose, for example: a visa-free package is 36 750 AED (10 050 USD) and a visa-eligible company will pay 93 850 AED (25 600 USD).
What is the validity period of a crypto license in the IFZA Free Zone?
The validity period of an IFZA crypto license is 1 year. It is necessary to renew your license in time to avoid automatic expiration. If the license is not renewed more than 4 months after the expiration date, a fine must be paid and the license renewal procedure is required.
What are the taxes and fees associated with a crypto license in IFZA?
IFZA offers a 0% tax on profits and dividends for companies, as well as an exemption for individuals from taxation of income from international activities. However, you can be subject to 9% corporate tax under the new regulations of the Ministry of Finance and the UAE Federal Tax Administration
What are the advantages of a crypto license in IFZA compared to other jurisdictions?
The advantages of an IFZA are economical business setup options, competitive fees, tax advantages, fast start-up, remote management, expanding borders, full company ownership, easy bank account opening, and many other perks.
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