Establishing a Virtual Asset Business under Dubai’s VARA Framework: Mainland vs Freezone
Dubai’s VARA has established a unified, stringent regulatory framework for Virtual Asset Service Providers (VASPs). However, the choice between a Mainland and Free Zone entity fundamentally impacts a VASP’s operations. This guide details the strategic differences:
• Mainland (DET): Offers unrestricted access to the entire UAE market but subjects the VASP to the standard 9% Corporate Tax.
• Free Zone (FZ): Guarantees 100% foreign ownership and potential 0% Corporate Tax for Qualifying Free Zone Persons, but restricts direct trading with the UAE Mainland.
The decision must strategically align with your market focus (local vs. international) to ensure a smooth VARA licensing process.