It is not just the largest free zone in the UAE. Dubai Multi Commodities Centre (DMCC) is known as one of the most respectable places for commodity trading in the world. Established in 2002, DMCC now contributes roughly 10 per cent to Dubai’s GDP.
With the cryptocurrency market emerging strongly around the world in the last decade, propriety crypto business is something a lot of multinational Clients are enquiring about. There are multiple jurisdictions where these businesses can be set up, including DMCC. I recently took up a DMCC crypto engagement for a Client. DMCC does issue crypto licences but only on a case-by-case basis. There is also a pre-approval process around the licence issuing process.
I recommended to the Client that the best course of action would be for him to settle a retainer fee with us, covering our work to secure licence pre-approval from DMCC. The understanding would be that the Client settles the remaining fee for the DMCC engagement, and we would set up the company. The Client agreed to this approach and settled our retainer fee.
Key to a successful application to DMCC is a quality business plan, prepared accordingly to DMCC’s guidelines. This required some inputs from our Client, including the proposed investment platform he would use.
Within a week, we submitted the business plan to DMCC for pre-approval. DMCC reverted to clarify further items with us and then granted pre-approval. The Client then settled the balance of our engagement fee, and we advanced the company incorporation. Within four weeks, we managed to secure DMCC company numbers.
We provided an office space at CV Labs for our Client. Additionally, CV Labs has partnered with DMCC to promote crypto businesses. They, along with Securities and Commodities Authority, are working on other crypto exchange licenses that will be introduced in DMCC on a later date.
The Client did not need us to assist him to open a corporate bank account. So, once the company was set up, we provided him with all the incorporation documents and informed him about the share capital deposit guidelines, and that marked the end of the engagement.
The Client is now looking to engage us to secure a similar crypto exchange licence in Bahrain. And I’m confident that we will successfully handle that engagement as well.
Read more about setting up a business in DMCC here.