Incorporation of a company for ICO
ICO as a means to attract investment is a relatively new phenomenon in the world market.
The first ICO start-up was launched in 2014 and in the next 2 years this system has gradually gained popularity until it caused a real "outbreak" in the international financial arena.
During current year, several multi-million projects were launchedthrough ICO, each of which significantly increased investing.
Why register a company for ICO?
Both investors and the authors of the projectearn a lot of funds by means of ICO, and the foregoing makes this form of attracting start-up capital so popular.
Unfortunately, not everyone thinks about registering a company for ICO on time, taking advantage of the lack of strict regulation regarding it in most countries.
Startupers are waiting for the completion of pre-ICO or are not going to make the company legal until the fundraising is over. But they do not take into account the following factors:
- Development of any project requires not cryptocurrencies in which investors contribute to ICO, but fiat money. It is possible to convert the collected investments during ICO not in all countries and in the presence of a registered legal entity. Thus, by registering a company, you get the opportunity to "cash" virtual money gradually, as soon as they are accumulated. Otherwise, if cryptocurrency is depreciated, you will lose all the accumulated funds in one day.
- There are more and more scammers on the market, and investors can abandon a good idea simply because of distrust in the company. If you do not have enough reputation and wide popularity, then your relationship with the investor is built on pure trust. The presence of a registered company in a jurisdiction with favorable legislative regulation will show the transparency and integrity of your intentions and will draw more attention to the project.
Where can You register a company for ICO?
Until recently, the foregoing could be done in almost any country. But in September this year, the Central Bank of China announced the initial offering of tokens and raising funds for ICO outlaws. It is all the fault of the increased cases of fraud: projects were closed immediately after the fundraising.
The USA also tightened its policy with regard to ICO, equating the offering of certain types of tokens to the offering of securities.
Thus, further success of the project depends on the right selection of jurisdiction for the registration of the company for ICO. The most favourable countries for ICO today are:
1.Singapore that is a recognized territory of maximum economic freedom for businessmen. The legislative system of this jurisdiction contributes to the development of various innovations, including all projects related to blockchain, cryptocurrencies and ICO. The city-state plans to modernize internal economy and introduce blockchain systems everywhere. Today in Singapore, bills on the regulation of ICO are being actively drafted, and certain tokens will now fall under the law on securities. Therefore, before registering a company for ICO, it will be useful to seek legal advice.
2.Australia that is the first and so far the only state that has recognized cryptocurrency as legitimate money. Against the backdrop of widespread tightening of legislation for ICO, Australia is becoming an oasis for projects of this kind. The government refers to cryptobusiness with the utmost loyalty, providing various tax benefits.
Selection of appropriate jurisdiction largely depends on the scope of the particular project. You can contact the lawyers of Law&Trust International for more information about registering a company for ICO.