Crypto license obtainment in the UK
The UK is a great choice for Crypto Exchange setups due to the absence of any specific regulation introduced by the Financial Conduct Authority or FCA. However, it is highly recommended that Crypto Exchange Companies completed an analysis of their planned activity in order to clarify whether the particular project complies with the local legislation, mainly because the legal framework to the cryptocurrencies remains unclear for most potential investors. Although, there is no specific regulation, the FCA is of opinion that some Crypto Exchange setups may fall within the FCA’s regulatory boundaries depending on how they are structured, and it can only be decided case by case. Still, most Crypto Exchanges will fall outside the regulated area and will not involve any regulated investments under the relevant law. In other words, promoters involved in Crypto Exchanges are recommended to carefully consider whether their activities could mean they are arranging, dealing or advising on regulated financial investments.
Furthermore, digital currency exchanges that contribute the exchange of certain currencies should consider if they need to be authorized by the FCA to be able to provide their services.
General information
Company structure
- At least one shareholder (natural person or legal entity, no restrictions with regards to citizenship or residence)
- At least one director (foreign residents are allowed)
Taxation
- In general, UK companies are subject to 19% corporation tax
- Special rate of 20% is applicable to unit trusts and open-ended investment companies
- Standard VAT rate is 20%, reduced rates are 5% and 0 %
Accounting requirements
- Submission of Accounts and Annual Return is obligatory
- Accounting records shall be kept in English
- VAT declarations are filed once in 3 months
Secretary – Not Required
Registered Agent – Not Required
Registered office – Not Required
Registered address – Required
Procedure
In order to establish the Crypto Exchange company, the following steps will be carried out:
- Selection of preferable names by a client
- Preparation of required due diligence
- Initiation of the incorporation process once the company name is approved to be available
- Opening a bank account
In order to obtain license, Finance-Assistant will fill all necessary application forms and also acquire apostilled corporate documents.
Please, contact our specialists for more information about fees and personal requirements for your project.