Consultant for UAE crypto proprietary trading company

[Tom85]

Hello, due to the new corporate tax law in the UAE day traders now need to pay 9% tax on their profits. As it is more advantageous to run a crypto prop trading company than to do trading as a natural person, I am looking to setup a crypto prop trading company in Dubai.

Can someone recommend a good consultant for setting up crypto proprietary company and banking in Dubai, please?

 

[Thomas67]

Hello, due to the new corporate tax law in the UAE day traders now need to pay 9% tax on their profits. As it is more advantageous to run a crypto prop trading company than to do trading as a natural person, I am looking to setup a crypto prop trading company in Dubai.

Can someone recommend a good consultant for setting up crypto proprietary company and banking in Dubai, please?

Taxation of day traders is still to be fully confirmed I'd say.

Why would it be better if using a crypto prop company?

 

[OffChance]

You can't open a bank account in UAE with a prop trading company. You have to pay +$1k a month to an offshore bank like SEBA with terrible UX and bad fees.

 

[Tom85]

You can't open a bank account in UAE with a prop trading company.

This is very sad. They want crypto traders to pay taxes without any option of using local banks.
If you can pay tax in UAE from offshore bank account, that could be a good option.

I read your journey of setting up a crypto prop trading company in UAE, thanks for sharing it! Did you decide to close it and leave UAE?

Why would it be better if using a crypto prop company?

My main goal for company creation is getting a local business bank account that will accept profits from crypto trading to pay taxes. I think it's possible to just use personal bank account for small amount of deposits, but if bank figures out you do something in crypto space they will ban you.

Salary and dividends from the company will be a good proof of source of funds and wealth in the future.

 

[Thomas67]

This is very sad. They want crypto traders to pay taxes without any option of using local banks.
If you can pay tax in UAE from offshore bank account, that could be a good option.

I read your journey of setting up a crypto prop trading company in UAE, thanks for sharing it! Did you decide to close it and leave UAE?


My main goal for company creation is getting a local business bank account that will accept profits from crypto trading to pay taxes. I think it's possible to just use personal bank account for small amount of deposits, but if bank figures out you do something in crypto space they will ban you.

Salary and dividends from the company will be a good proof of source of funds and wealth in the future.

Regarding the drawback of using a personal bank account, do you think it is justified? I'm using a personal account from a (foreign) crypto friendly neo bank (some are quite solid), proposing a debit card, and profits from crypto won't be deposited on my personal UAE bank account.

Also, if you can prove (possibly with audit) the source of your funds/profits (e.g. profits from personal savings and (previous) employment) it might be fine for certain banks. I guess banks mainly want to protect themselves against deposits coming from illegal/criminal activities. I let other people in here confirm the point.

Your last sentence/argument depends on the context. I think all funds possibly coming from UAE towards EU or US (for example) afterwards would be seen as doubtful and might require an audit too to justify the sources of the funds (and of the original deposit I guess).

Of course up to you if you judge a crypto prop trading company is the best option.

 

[Tom85]

I'm using a personal account from a (foreign) crypto friendly neo bank (some are quite solid), proposing a debit card, and profits from crypto won't be deposited on my personal UAE bank account.

Sorry, I meant UAE banks will ban your account if they find out anything about you dealing with crypto. Crypto-friendly foreign banks are okay.

My concern was if we'll need to pay tax, how could we do that without local bank account. But I found that you can pay VAT using international transfer, so I guess tax payment will have international transfer option as well.

I think all funds possibly coming from UAE towards EU or US (for example) afterwards would be seen as doubtful and might require an audit too to justify the sources of the funds (and of the original deposit I guess).

Indeed, UAE is in EU blacklist. Looks like setting up a company there will be a headache if you'll want to move your money from that company to EU/US in the future.

 

[Thomas67]

Sorry, I meant UAE banks will ban your account if they find out anything about you dealing with crypto. Crypto-friendly foreign banks are okay.

My concern was if we'll need to pay tax, how could we do that without local bank account. But I found that you can pay VAT using international transfer, so I guess tax payment will have international transfer option as well.

Indeed, UAE is in EU blacklist. Looks like setting up a company there will be a headache if you'll want to move your money from that company to EU/US in the future.

I think if you have a foreign neo bank account with legit funds (e.g. personal savings from previous employment, donation, etc...) that you can prove for the UAE personal bank account opening, afterwards you can do whatever you want with your foreign neo bank account, convert and send you cash from your wallet to the latter before sending it to your UAE account. I've never been asked to justify all my deposits to my UAE personal bank account

 

[TheCryptoAnt]

You can't open a bank account in UAE with a prop trading company. You have to pay +$1k a month to an offshore bank like SEBA with terrible UX and bad fees.

PaySet will onboard crypto trading firms for a way lower monthly fee. Try there.

 

[OffChance]

I read your journey of setting up a crypto prop trading company in UAE, thanks for sharing it! Did you decide to close it and leave UAE?

Yes. My trade license expired and I'm not renewing it. Overall lost about $60k dealing with this bs.

 

[Thomas67]

PaySet will onboard crypto trading firms for a way lower monthly fee. Try there.

Wasn't my message but thanks for the info mate.