Search “VARA licence cost” and you will find minimum capital quoted at AED 100,000 on one site and AED 15 million on another. Both cannot be right. If you are planning a crypto exchange, broker-dealer, custody or payments business in Dubai, that confusion can cost you months. This guide shows which numbers are consistent across sources, why the rest disagree, and how to budget without trusting a single blog.
- VARA is Dubai’s virtual asset regulator for everything outside DIFC.
- Licences are activity-based, not one generic “crypto licence”.
- Most guides agree on AED 100,000 application and AED 200,000 annual supervision for broker-dealer, custody and exchange.
- Realistic timeline: 4 to 12 months depending on activity.
- Capital figures vary wildly. Confirm the current VARA rulebook before you commit funds.
The numbers that are consistent
| Activity | Application fee | Annual supervision fee |
|---|---|---|
| Broker-dealer | AED 100,000 | AED 200,000 |
| Custody | AED 100,000 | AED 200,000 |
| Exchange | AED 100,000 | AED 200,000 |
| Advisory or lighter activities | From about AED 40,000 | From about AED 80,000 to 100,000 |
These regulator fees come up repeatedly across law-firm and advisory guides. Adding a second activity category adds further fees, so multi-service platforms pay more than the table suggests.
Why the capital figures contradict each other
Here is the part most competitors skip. Published minimum capital runs from AED 100,000 to AED 15 million depending on the page. Three things explain the gap:
- Different formulas. VARA often sets paid-up capital as the higher of a fixed AED floor or a percentage of fixed annual overheads, commonly 15% where you use a VARA-licensed custodian and 25% where you do not. A blog quoting only the floor and one quoting the percentage will never match.
- Stacked activities. If you want broker-dealer plus custody plus exchange, requirements add up, which is how some guides reach eight figures.
- Stale rulebooks. VARA has updated its rules since launch, and older posts still rank.
| Source type | Typical claim | How to treat it |
|---|---|---|
| Rulebook-based guides | Fixed floor or 15 to 25% of overheads | Most reliable, verify the date |
| Marketing pages | One round number per licence | Treat as a rough guide only |
| Multi-activity examples | AED 5M to 15M | Only valid if you stack activities |
Timeline by activity
| Activity | Typical time (published estimates) |
|---|---|
| Advisory | 3 to 6 months |
| Broker-dealer | 4 to 7 months |
| Custody and exchange | 6 to 9 months |
| Token issuance | 9 to 12 months |
The licensing path in plain English
- Approval to incorporate. You submit an initial disclosure questionnaire through your free zone or Dubai Economy and Tourism, and typically pay part of the application fee up front.
- Incorporate the company in the chosen zone or mainland, with a physical presence in Dubai.
- Full licence application with your AML/CFT framework, governance, technology and key people.
- Ongoing obligations. Hold the required capital and liquidity and pay supervision fees every year.
Custody is usually expected to sit in a separately licensed entity, which affects both structure and cost, so decide early whether you will build or partner with a licensed custodian.
A sensible first-year budget
Published estimates for the first year range from about US$60,000 to 160,000 for a lean single-activity setup up to US$700,000 to 2.5 million for a multi-class platform, once capital, compliance staff, legal fees and technology are included. Treat those as planning brackets, not quotes.
Banking and tax: the parts people forget
Crypto firms face extra scrutiny at banks, so read our guide on getting a UAE business bank account approved first time before you incorporate. For tax, a licensed free zone entity still has to meet the corporate tax conditions, see whether you qualify for 0%, and AML duties apply, see our goAML guide. If you want a cheaper holding wrapper, compare UAE offshore companies, but remember offshore entities cannot serve Dubai clients.
FAQ
Do I need a VARA licence for a DIFC company? No. DIFC virtual asset activity falls under the DFSA instead.
Is there a single “crypto licence”? No. VARA licenses by activity such as exchange, custody, broker-dealer and advisory.
Can I start with advisory? Many founders do, because fees and capital are lighter, but you cannot offer regulated trading services under it.
Always confirm current fees and capital on the official VARA website. Planning a licensed crypto business? Talk to BizDaddy about structure and banking first.
