Offshore bank account for UAE company (with cursed DMCC Crypto Trading license)

[OffChance]

Hello,

I've reached out to an agency a few months ago to open up a company in the UAE for my crypto trading activities and they've went ahead and setup a company for me in DMCC with a Crypto Trading license which cost me roughly $20k USD. Fast forward the agency I used to setup this company (which is a terrible agency by the way, ghosting me for days with no status updates etc) is now telling me they can't open a bank account for my company because of local banks policy even though it was part of their package to open a business and personal bank accounts. I do understand that it was a mistake to get the Cryptocurrency Trading license and I should've just got a Digital Marketing license or something similar for like half the cost but it's too late now.

Now I think there is two options: either find a bank outside the UAE or spend another $10k making a brand new Digital Marketing freezone company and forget about the DMCC one.

Side question, can I get a refund from DMCC and/or the agency that opened up my business? It's part of the invoice & the contract that I signed that they open up a bank account for me.

Also why does DMCC even offer a Crypto Trading license if you can't even make a bank account? What's the purpose of a company without a bank account?

Thanks a lot for reading and looking forward to hearing your suggestions.

Regards.

 

[troubled soul]

Ok So you Register crypto company in DMCC with crypto license...and Now You do not able to open a bank account for this....
I far as I know None bank in Dubai is crypto friendly....

Try
Bank Frick & Co. AG
FIDOR Bank AG
Xapo Bank Limited
SEBA Bank AG
Maerki Baumann & Co. AG
InCore Bank AG
Sygnum Bank AG

Hope this helps....

Keep in mind that

The DMCC Crypto License is for:

1. Exchange
2. Fundrasing Platform Operator (ICO)
3. Custody Services
4. Brokerage

The DMCC Crypto License is not for:

1. Crypto/Fiat Cashout
2. Banking with UAE Banks
3. Trading
4. OTC

Regarding Local bank account.....Forget the crypto company.....Normal small busiess have hard time to open bank account for their business....

You hire people for company registration ...You can ask for refund with them.. ..DMCC authority has a refund policy which I attach the below...

Attachments​

• 
  REFUND_POLICY_-_NEW_COMPANY_APPLICATION.pdf
  129.1 KB · Views: 116

 

[OffChance]

Thanks a lot

azb1 said:
Ok So you Register crypto company in DMCC with crypto license...and Now You do not able to open a bank account for this....
I far as I know None bank in Dubai is crypto friendly....

Try
Bank Frick & Co. AG
FIDOR Bank AG
Xapo Bank Limited
SEBA Bank AG
Maerki Baumann & Co. AG
InCore Bank AG
Sygnum Bank AG

Hope this helps....

Keep in mind that

The DMCC Crypto License is for:

1. Exchange
2. Fundrasing Platform Operator (ICO)
3. Custody Services
4. Brokerage

The DMCC Crypto License is not for:

1. Crypto/Fiat Cashout
2. Banking with UAE Banks
3. Trading
4. OTC

Regarding Local bank account.....Forget the crypto company.....Normal small busiess have hard time to open bank account for their business....

You hire people for company registration ...You can ask for refund with them.. ..DMCC authority has a refund policy which I attach the below...
Click to expand...

Thanks a lot, I appreciate it very much. I am going to try out all those banks you listed and see if any of them work. Will let you guys know.

Regards.

 

[JackAlabama]

OffChance said:
Hello,

I've reached out to an agency a few months ago to open up a company in the UAE for my crypto trading activities and they've went ahead and setup a company for me in DMCC with a Crypto Trading license which cost me roughly $20k USD. Fast forward the agency I used to setup this company (which is a terrible agency by the way, ghosting me for days with no status updates etc) is now telling me they can't open a bank account for my company because of local banks policy even though it was part of their package to open a business and personal bank accounts. I do understand that it was a mistake to get the Cryptocurrency Trading license and I should've just got a Digital Marketing license or something similar for like half the cost but it's too late now.

Now I think there is two options: either find a bank outside the UAE or spend another $10k making a brand new Digital Marketing freezone company and forget about the DMCC one.

Side question, can I get a refund from DMCC and/or the agency that opened up my business? It's part of the invoice & the contract that I signed that they open up a bank account for me.

Also why does DMCC even offer a Crypto Trading license if you can't even make a bank account? What's the purpose of a company without a bank account?

Thanks a lot for reading and looking forward to hearing your suggestions.

Regards.
Click to expand...

That is something for @Fred

 

[OffChance]

JackAlabama said:
That is something for @Fred
Click to expand...

I've contacted DLS Dubai and their proposed solution is to go through the entire company creation process again (including the visa & emirates id with medical & fingerprints & xray even though I think it shouldn't be needed, might be wrong).

 

[khinkali]

@OffChance did you find another Free Zone in Dubai that offers the "Proprietary Trading in Crypto-Commodities" business activity? So far, I have not seen it outside of DMCC.

 

[Sols]

OffChance said:
Now I think there is two options: either find a bank outside the UAE or spend another $10k making a brand new Digital Marketing freezone company and forget about the DMCC one.
Click to expand...

You can try the banks @azb1 mentioned. It's a good list to start with.

But unless you can demonstrate strong ties to UAE, the first question banks will ask themselves is why you didn't get a license/registration somewhere more reputable (Estonia, Malta, Gibraltar, Cyprus, Switzerland, UK) and why you're showing up with an non-central bank, free zone license from UAE (which is currently on the FATF watch list).

OffChance said:
Side question, can I get a refund from DMCC and/or the agency that opened up my business? It's part of the invoice & the contract that I signed that they open up a bank account for me.
Click to expand...

If someone offered you a guarantee to open bank account for any business (let alone a UAE based crypto business), this is a huge red flag because it's not something that they can guarantee at all.

You can try asking them for a refund. Depending on how the agreement is worded, you can demand refund for the account opening fee or for the whole service.

However, most likely, what you sign is just an agreement where they will assist you with account opening, which they probably can't do because a UAE crypto license isn't something banks generally accept.

OffChance said:
Also why does DMCC even offer a Crypto Trading license if you can't even make a bank account? What's the purpose of a company without a bank account?
Click to expand...

DMCC sees it as a way to score easy money on license fees.

Local banks see it as a risk to their correspondent relations.

OffChance said:
Thanks a lot for reading and looking forward to hearing your suggestions.
Click to expand...

You're in a tough spot. Make sure you don't fall into the sunk cost trap, where you keep throwing money at UAE without results.

Consider cutting your losses and getting a license somewhere else.

Toggle signature
This is the probably the answer to your question.

 

[zaybxc]

Do you need a company to trade your own crypto in the UAE?

 

[JackAlabama]

OffChance said:
I've contacted DLS Dubai and their proposed solution is to go through the entire company creation process again (including the visa & emirates id with medical & fingerprints & xray even though I think it shouldn't be needed, might be wrong).
Click to expand...

Yah its needed. You cannot unf* your burned company with that license no bank will ever touch.
Consider it as business expense. Not worse than losing cash in a shitcoin.

 

[Fred]

OffChance said:
I've contacted DLS Dubai and their proposed solution is to go through the entire company creation process again (including the visa & emirates id with medical & fingerprints & xray even though I think it shouldn't be needed, might be wrong).
Click to expand...

That's correct as my colleague Dina mentioned you we can't guarantee the Business Bank Account opening some "start your Company today for 5000 AED" Agent did messed up.

Don't fool yourself as our reputation is build on the right fundament - we have everyday people calling and emailing us to ask if we can get something in RAK or Fujairah done but basically they fool themselves. There are restrictions and black listings in place even within the UAE for certain Freezones or Products like Crypto Trading License - we can't change this circumstances but adopt them and work accordingly. That's basically what the initial agent should have done as well.

Toggle signature

 

[Bill D]

Sols said:
But unless you can demonstrate strong ties to UAE, the first question banks will ask themselves is why you didn't get a license/registration somewhere more reputable (Estonia, Malta, Gibraltar, Cyprus, Switzerland, UK) and why you're showing up with an non-central bank, free zone license from UAE (which is currently on the FATF watch list).
Click to expand...

As a uae resident can you open a company in cyprus/estonia and manage it from dubai, pay the tax in the incoporated country and get a EU bank account easier than the FZ would get ?

Wouldn't it be easier to move away from dubai and to live in the country where you incorporate to get more substance and easier bank access ?

 

[Sols]

Bill D said:
As a uae resident can you open a company in cyprus/estonia and manage it from dubai, pay the tax in the incoporated country and get a EU bank account easier than the FZ would get ?
Click to expand...

Marginally. Even if you do get a crypto license in Estonia or Cyprus, as long as you are effectively in charge and if you are the sole or majority owner (UBO) while living in UAE, the banks are going to take that into consideration and it won't be in your favor. UAE is on the FATF grey list ("Jurisdictions under Increased Monitoring"), which means banks consider UAE higher risk.

But it's a different story if you are the owner and have an actual team in Estonia or Cyprus.

Bill D said:
Wouldn't it be easier to move away from dubai and to live in the country where you incorporate to get more substance and easier bank access ?
Click to expand...

Abandoning UAE in favor of EU or similar will likely increase chances of getting access to banking, although it does not guarantee it.

Toggle signature
This is the probably the answer to your question.

 

[OffChance]

khinkali said:
@OffChance did you find another Free Zone in Dubai that offers the "Proprietary Trading in Crypto-Commodities" business activity? So far, I have not seen it outside of DMCC.
Click to expand...

I haven't looked for another freezone with similar license. There is no point in getting a crypto-related license since banks will outright reject you anyway.

Sols said:
If someone offered you a guarantee to open bank account for any business (let alone a UAE based crypto business), this is a huge red flag because it's not something that they can guarantee at all.
Click to expand...

Yeah now I understand this, before I didn't even consider the possibility that banks will outright reject local corporate clients because they have a certain license. Also I think DLS Dubai claims to have Guaranteed Business Account opening, but I guess it's kind of guaranteed since they setup companies with basic licenses like Online Marketing and such. At least one bank will accept you I guess.

Sols said:
You're in a tough spot. Make sure you don't fall into the sunk cost trap, where you keep throwing money at UAE without results.

Consider cutting your losses and getting a license somewhere else.
Click to expand...

I appreciate your advice, will probably go with DLS as last try.

zaybxc said:
Do you need a company to trade your own crypto in the UAE?
Click to expand...

I don't think so.

JackAlabama said:
Yah its needed. You cannot unf* your burned company with that license no bank will ever touch.
Consider it as business expense. Not worse than losing cash in a shitcoin.
Click to expand...

Yep, I already counted it as a loss when I read everywhere that it's impossible to open a bank account with this license rof/%

Fred said:
That's correct as my colleague Dina mentioned you we can't guarantee the Business Bank Account opening some "start your Company today for 5000 AED" Agent did messed up.

Don't fool yourself as our reputation is build on the right fundament - we have everyday people calling and emailing us to ask if we can get something in RAK or Fujairah done but basically they fool themselves. There are restrictions and black listings in place even within the UAE for certain Freezones or Products like Crypto Trading License - we can't change this circumstances but adopt them and work accordingly. That's basically what the initial agent should have done as well.
Click to expand...

Yeah it's a terrible agency, they have no clue what they're doing and sometimes they ghost me for days/weeks with no replies & no status updates. Basically a scam.


Thank you all for taking the time to reply, I appreciate it. Will see if XAPO accepts my application and call the agency again tomorrow to see what they'll say regarding the refund.

Regards.

 

[Fred]

@OffChance from the above mentioned banks Fidor Bank is in liquidation:

https://www.cardscout.de/kreditkarten-news/fidor-start-der-liquidation
You can find here in the forum information about it as well.

XAPO Bank does only Personal Accounts with some "digital Private Bank" Business Model.

SEBA Bank is actually charging 10000 CHF per year for a Business Bank Account - which is basically a joke:

https://www.seba.swiss/legal-notices/seba-bank-pricing-schedule-corporates-15032021.pdf
As @Sols mentioned cut losses and do it properly before you are getting into the Switzerland private bank fees after fees rollercoaster.

Toggle signature

 

[khinkali]

OffChance said:
I haven't looked for another freezone with similar license. There is no point in getting a crypto-related license since banks will outright reject you anyway.
Click to expand...

I guess proprietary crypto traders in Dubai who are unwilling to bank elsewhere are just trading with completely inappropriate licenses and aren't worried about it because "YOLO" or whatever...

 

[OffChance]

Fred said:
@OffChance from the above mentioned banks Fidor Bank is in liquidation:

https://www.cardscout.de/kreditkarten-news/fidor-start-der-liquidation
You can find here in the forum information about it as well.

XAPO Bank does only Personal Accounts with some "digital Private Bank" Business Model.

SEBA Bank is actually charging 10000 CHF per year for a Business Bank Account - which is basically a joke:

https://www.seba.swiss/legal-notices/seba-bank-pricing-schedule-corporates-15032021.pdf
As @Sols mentioned cut losses and do it properly before you are getting into the Switzerland private bank fees after fees rollercoaster.
Click to expand...

Yea I gave up on Swiss banks. I didn't know XAPO doesn't do business, I guess I will just have to do it the Digital Marketing business way. Will be in touch with you soon to ask about more details on withdrawal limits and such, thanks a lot for the help.

 

[OffChance]

khinkali said:
I guess proprietary crypto traders in Dubai who are unwilling to bank elsewhere are just trading with completely inappropriate licenses and aren't worried about it because "YOLO" or whatever...
Click to expand...

Yes, I guess so.

@Fred Thoughts?

 

[OffChance]

Hmm I think I will first try amending the license to IT Services or similar. Costs only like $400 might as well give it a go. What do you guys think?

 

[Bill D]

khinkali said:
I guess proprietary crypto traders in Dubai who are unwilling to bank elsewhere are just trading with completely inappropriate licenses and aren't worried about it because "YOLO" or whatever...
Click to expand...

that's why I made a post about it, most agent propose ecommerce licenses to proprietary crypto trading one man company, I wonder how it can fit with the banks, I would see it could work as a cashout solution, and only if you are ready to lie and produce fake invoice which I think is a huge risk and not a pathway I like. But how would this work for a transactional proprietary trading type of bank account that any trader need ?

And explain me how will the audit work for someone who traded crypto and have a license for trading light bulbs ? How will he pass his audit exactly ?


Op could also behave as an.individual but it will he be able to get transactional type of banking(local or abroad)? And as well the CT could be applied from july on and reduced if structured as a fz+salary

 

[OffChance]

Bill D said:
that's why I made a post about it, most agent propose ecommerce licenses to proprietary crypto trading one man company, I wonder how it can fit with the banks, I would see it could work as a cashout solution, and only if you are ready to lie and produce fake invoice which I think is a huge risk and not a pathway I like. But how would this work for a transactional proprietary trading type of bank account that any trader need ?

And explain me how will the audit work for someone who traded crypto and have a license for trading light bulbs ? How will he pass his audit exactly ?


Op could also behave as an.individual but it will he be able to get transactional type of banking(local or abroad)? And as well the CT could be applied from july on and reduced if structured as a fz+salary
Click to expand...

Can you link to the post please?

Thanks