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I am planning to launch crypto NFT project. However I want to test first the idea to see if it gets popular enough. If the idea won't get enough interest from the market I won't continue the project. But if it happens that it gets real hype, I need to react quickly and get fast company solution.
Are there any crypto friendly pre-made companies that I could buy and start business in less than 10 days? As much anonymous as possible.
Unless you have partners you share this company with abroad or office directors and employees taking some real decisions in the country you create the company at. You will almost certainly have pay taxes in your home country (even if the company is incorporated offshore it will be considered a resident of your own country) not doing so will be illegal. You could still relocate yourself (and SOON - so you can acquire tax residence elsewhere during this year and live in a much more favorable tax environment)
If you are in a EU country and you aren't invoicing your buyers or at the bare minimum collecting their IP and address/country (which 99.9% of NFT projects don't do) you might even have to pay an average of 20% (depending on your own country) VAT for all transactions as you cannot tell the buyers origin. That coupled with corporate tax and income/dividend tax of the average EU country and you are looking at around 60%+ to the tax-man. Changing the way you go about delivering your NFT (collecting buyers data) or being in countries with low VAT/GST or no VAT/GST at all, will help
Also you need to look into what type of NFT project are you planning to release (as some can be categorizes as securities and that could land you in serious trouble, harmless looking things like fractionalizing NFTs or DAOs with community funds for instance).
Countries like UAE could be good for your personal tax residence (for which you most likely need a company setup so you can get a visa to live there and obtain your tax residency) but right now I don't see anything pointing to UAE being safe or ideal for launching a NFT collection (as a company) with the latest announced rules, too much uncertainty. You have some options but they depend on your situation and what you are willing to concede.
Update regarding UAE. Let me shine some more light into it.
Those interested in creating a NFT collection should be looking to setup their Freestone company in the DIFC Freezone only (if you want to play it extra safe). The 9 of march it was announced that most freezones (except the DIFC) will introduce VARA to regulate virtual assets .The DIFC has their own regulatory authority DFSA which the 8 of march 2022 publicly announced that NFTs are excluded from being a "virtual asset"
Recommended lecture: Q&A on the Dubai Financial Services Authority's recent proposals to regulate crypto assets https://dfsaen.thomsonreuters.com/rulebook/consultation-paper-no-143-regulation-crypto-tokens
Unless your NFT is structured in a way that could be considered a security you should be able to release your collection without any special licenses within the DIFC Freezone.
Because I could start the project from the day I make decision just in a few days vs waiting weeks for new setup and relocation.
Strictly speaking yes I would need to relocated to new country to play by rules if I don't want to pay taxes in my country. But chances that they would tax me if I stayed in my country is low probably. Some people even don't report to their home country they have company abroad. Most people even don't open any company for NFT projects but this is too risky by my opinion.
Update regarding UAE. Let me shine some more light into it.
Those interested in creating a NFT collection should be looking to setup their Freestone company in the DIFC Freezone only (if you want to play it extra safe). The 9 of march it was announced that most freezones (except the DIFC) will introduce VARA to regulate virtual assets .The DIFC has their own regulatory authority DFSA which the 8 of march 2022 publicly announced that NFTs are excluded from being a "virtual asset"
Recommended lecture: Q&A on the Dubai Financial Services Authority's recent proposals to regulate crypto assets https://dfsaen.thomsonreuters.com/rulebook/consultation-paper-no-143-regulation-crypto-tokens
Unless your NFT is structured in a way that could be considered a security you should be able to release your collection without any special licenses within the DIFC Freezone.
Quick follow up questions, would the collection have to be created using a corporate wallet?
And as far as the timeframe is concerned, can one already start marketing, growing the community before the company is incorporated?
Similarly, can one pay the artist & dev from personal funds, or do these expenses have to be made from the company account to be 100% sure that the liability from the project is limited.
Hi Uplana, thanks for chipping in. Do you happen to know anything regarding the requirement to create the collection using the corporate wallet? Or will an individual one also work.
I have a company that can issue tokens and do asset securitization fully registered as an exempt company (tax transparent) in Luxembourg, in case anyone is interested. Ideal for crypto token distributions, but also for profit participation loans, create your own corporate debt issuance, etc.
Had a agent that was screwing around, and ended up creating another with another agent, then had that agent a year later take agency control (for its management) from the initial agent.
