DLT License Application Process:

Below is a step by step standard guide giving the outline of what the ‘standard’ DLT License application through one of our associated companies actually entails, stages of the application, and some of the fees involved.

We do not wish to waste your time, please ensure you have an understanding of the process, and services we can offer you before approaching us, in order to avoid any disappointment.

DLT Questionnaire:

The first step of the process is to determine whether your proposed business activities require a DLT License in Gibraltar.

It may be that your requirements of a Gibraltar company do not fall under the DLT Regulations, and licensing may not be applicable.

At this stage, you should give a full, and honest proposal of the business structure and plans, in order to accurately determine whether this licensing is applicable to you.

KYC

All individuals related to the company will need to provide all Know Your Customer (KYC) documents, which will likely include:

  • Copies of passports
  • Copies of utility Bills
  • History/CV
  • Bank statements showing the past 6 months
  • Source of start up capital
  • Website address(es)

Please note, this is not a limited list and our associated parties can ask for any additional documents they may need to gain a full understanding of the structure, business activities, related companies or individuals or any other aspect of the KYC regulations.

Business Plan & White paper

Prior to a risk assessment process, applicants will need to provide a full and detailed business plan, outlining the proposed business strategy for a minimum of 2 years.

Companies proposing ICO/ITO to fund the company and  DLT License, are likely to fall within the scope of the proposed token regulations, and will need to clearly specify how they plan to fund, and manage the funds raised for the project.

Initial risk assessment

The first stage is often an initial risk assessment process. These checks are used to gauge whether the company fits into the risk appetite of our associates, and can be used as an indication of the likelihood of the DLT Licence application being accepted.

It is important that you understand that all license applications will be judged by the GFSC. Despite our best efforts, no party other than the GFSC can guarantee the success of a license application, at any stage of the process.

An up-front, non-refundable risk assessment fee often applies in advance of this process in order to ensure our associates do not waste time on non-viable options without first covering their costs.The fee will depend on the complexity of the structure and business activities.

Legal Opinion:

In most circumstances, applicants will require a Gibraltar lawyer to overlook the business activities to asses whether or not they fall within the scope of any other existing regulations.

Initial Application

Once applicants have satisfied all initial compliance procedures and stages of the process, the initial application can be drafted and submitted. A fee of £2,000 will be paid directly to the GFSC in payment for the initial application fee. This £2,000 will be deducted from the remaining balance to the GFSC upon submitting the final application.

As with other steps, there will be likely be added fees for representation, and no party can guarantee success of any application other than the GFSC.

Final Application

After all the other steps have been successfully navigated, and recommended changes been made to the project, the final application to the GFSC can be submitted.

The fees applicable for this stage are dependent on the complexity category, decided by the GFSC after the initial application. The complexity category will be based on a number of factors and is completely at the discretion of The GFSC.

The GFSC fees are outlined below. The fee of £2,000 paid to the GFSC upon the initial application, will be deducted from the remaining balance payable upon submitting the final application.

DLT LICENSE CATEGORY APPLICATION FEE BALANCE PAYABLE ON SUBMITTING FULL APPLICATION * ANNUAL RENEWAL FEE
Complexity Cat 1 £10,000 £8,000 £10,000
Complexity Cat 2 £20,000 £18,000 £20,000
Complexity Cat 3 £30,000 £28,000 £30,000

Fit and Proper Test:

As part of the final application procedure, applicants will have to undergo a “fit and proper test”.

This is an important step for clients to take into consideration before starting the process, as applicants will have to visit Gibraltar and make a physical presentation of the proposed DLT business to the GFSC.

As with incorporation of a company, in the first stages, clients should declare any adverse information, legal wrongdoings, or corporate disqualifications,relating to themselves or any relations to the company, in order for the GFSC to have a full and proper understanding of “who that person is”.

Should any information come to light that has not been declared originally, it is highly likely that this fit and proper test will prevent you from furthering your application.

Successful Application:

A successful DLT License application, will take an average of 3-4 months, from beginning to end.

We recommend you research available office space and additional costs involved in operating from Gibraltar, prior to applying for this license. However, do note the GFSC do not expect you to commit to a property before your DLT License application is approved.

We recommend you obtain the services of a Gibraltar accountant and auditing firm, to fulfill your auditing requirements.

If you intend to contact us, regarding this DLT licence application, please ensure you have read all the above information carefully and have a general knowledge of the Gibraltar DLT regulation.

Please email info@octopus.gi with any questions you may have, and provide a brief description of the proposed business activities from the outset.

We wish you luck with your DLT License application.