Each crypto-based business project comes with a specific selection of jurisdictions where they should operate, depending on their needs and abilities. Without knowing all the strengths, weaknesses, and attributes of your project, it is hard to claim that one place in the world is the best for it.
Even with that in mind, you need to understand that there are several jurisdictions that are considered to be good locations for crypto businesses. As of 2022, Portugal can be considered the MOST cryptocurrency-friendly nation in the world.
It offers a vast array of tax incentives and other lucrative incentives for crypto entrepreneurs, and it has the longest track record for being a very forward-thinking crypto-friendly nation.
The uncomplicated, reasonable, and efficient legal framework also makes obtaining a crypto license Portugal a very quick and easy procedure. This is especially true for start-ups.
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What Advantages Does Portugal Have for Crypto Projects?
One of the most significant advantages Portugal has for crypto projects is that the country is a pioneer in the crypto industry. The Portuguese government has established several policies and regulations that facilitate the growth and development of the blockchain industry. Other upsides include.
- Many incentives for people with cryptocurrency businesses.
- High quality of life.
- Cheap ongoing costs.
- Tax rates are among the lowest in the EU.
- Government seeks to help startups grow and does not impose high taxes on them.
- A broad variety of accredited investors.
If you choose to launch your business in this European country, you are automatically granted access to a number of lucrative benefits.
What Do You Need to Get a Crypto License in Portugal?
There exist several stipulations that you need to fulfill in order to be granted a crypto license in Portugal. The following are the stipulations imposed by the central bank of the Portuguese Republic.
- Appointed AML officer, appointed director who currently resides in Portugal.
- Local office.
- Share capital.
- Comprehensive risk profile.
- KYC procedures.
This list is in no way complete and should not be used as the only one you have to examine prior to formulating your business plans.
What Are Portugal’s Alternatives for Obtaining a Crypto License?
In order to obtain a crypto license in Portugal, you must have all the preconditions imposed by Portuguese law. If you don’t satisfy them, you cannot apply for a crypto license and your business will, most likely, be unable to operate in the country.
Offshore countries like Saint Vincent and Grenadines or the British Virgin Islands may be an “easier” option for those that are ready to venture into a less prestigious segment.
Within the European content, Estonia is one of the most crypto-friendly countries. The state has decided to adopt the same approach that the Government of Portugal adopted, by providing numerous tax benefits to blockchain companies.
The transparent, straightforward legal framework and less stern requirements for a crypto license made Estonia a good location for businesses that might be interested in finding a backup option for their investment plans.
List of Documents for Obtaining a Crypto License
It should be noted that the preparation and submission of documents for a crypto license should not be an expensive and time-consuming process. Because of that, it’s strongly advised to seek assistance from a qualified company that specializes in the field of crypto regulations and business registration.
Generally, the list of documentation required for your crypto license will include: Articles of Association, Certificado de Admissibilidade de Firma ou Sociedade, authentic copies of IDs, proof of no criminal record, CVs, and several other documents. In addition to these, there are additional documents that might come in handy depending on how the process of acquiring a license will be conducted.
Terms of Registration and Obtaining a Crypto License in Portugal
What is the process of registration like? Well, if you read the above list of requirements and restrictions carefully, you will be able to understand what is required of you.
Preparation is the most vital stage: you need to gather the right paperwork, prepare a schedule, and execute it perfectly in order to obtain a crypto license.
Understanding what documents to submit and in what form is really important, so, once again, you must be reminded that it’s easier to establish a business in Portugal when there’s a professional firm that can prepare all the necessary documentation for you and guide you through the process.
Getting your internal policies and documentation in order is the most pivotal thing during the initial stages of expansion.
What comes next is you contacting Portugal’s central bank in order to submit the requisite forms. This means that soon enough you will be able to obtain the corresponding license for your business in the country.