NFT Legal Consulting Services

Partnership (entity type)

There are many types of partnerships throughout the world, however, as per our research and experience, a Dutch partnership and foundation structure might work the best for NFT projects due to its vast flexibility on distributing profits to each partner and its tax status. Structure of the Dutch partnership is tax transparent, meaning the profits are taxed only on individual level. Partners can contribute to the partnership through their work and receive equivalent profit. Partnerships are established and managed via the deed of incorporation, which is executed by all partners and in which all matters related to the management of the NFT project can be laid down. On the other hand, launching a project by using a Dutch foundation is likely to have certain VAT liabilities, therefore, every case should be examined separately - our crypto law specialists offer their deep understanding of the emerging sector in order to determine whether this is the type of company most suited for the particular NFT business, considering various long-term scenarios.

Limited Liability Company (LLC)

Taking into account such things as tax efficiency and legal environments, oftentimes, the most obvious option for an NFT project is the LLC in Dubai. However, Dubai companies which receive royalties are subject to extensive substance requirements - which are quite difficult to meet (nevertheless, we can help you with that). Therefore, depending on the case, several companies can be used, only one of which would be operating in Dubai under a joint venture agreement. Such model would allow the beneficiaries to make the most out of the UAE’s tax efficiency and to keep the costs of maintaining the corporate structure lower. On the other hand, this company would not be EU-based, and this can result in some drawbacks, such as more demanding procedures in order to access payment services. For this reason, it is important that all individual circumstances are taken into account before starting the venture.