Where To Setup an ICO – Gibraltar?

Gibraltar has positioned itself as one of the first, “crypto friendly” jurisdictions.

 

In late 2017 Gibraltar released a regulatory framework for blockchain businesses that shored up legal status of the technology as a means of transmitting payments.

 

Now, in possibly a world first, it has conceived a set of regulations that provide for the registration and regulation of ICOs (Initial Coin Offerings).

 

This combined with its tax efficient company structures has seen many new start-ups flocking to Gibraltar to host their ICOs & ITOs.

 

With DLT regulations now in force, and Gibraltar seen as a new hub for crypto related businesses, there is also a small window of opportunity available for these currently unregulated ICO & ITO companies of Gibraltar.

 

The Gibraltar Regulator is planning a complementary regulatory framework covering the promotion and sale of tokens, aligned with the DLT framework.” The proposed regulations, which are reported to be implemented in the latter stage of 2018 are set to cover any person related to Gibraltar and carrying out activities related to:

 

  • The sale, promotion or distribution of Tokens by persons connected with Gibraltar;
  • Secondary Market activities relating to tokens, carried out in or from Gibraltar; and
  • Providing, by way of business in or from Gibraltar, advice relating to investment in tokens.

 

Authorised Persons

 

One of the key aspects of the token regulations is the regulation of “authorized sponsors” who will be responsible for assuring compliance with disclosure and financial crime rules.

 

Gibraltar is also reportedly considering regulation relating to investment funds associated with cryptocurrencies and tokens.

 

This is a wide and general scope, meaning it is likely that the new regulations will cover most if not all aspects of ICO & ITO Gibraltar companies, or individuals. 

 

In effect they have decided that a one-size-fits-all regulatory approach would be inappropriate for the blockchain funding model. Consequently, Gibraltar is instead developing a set of principles for best practice. With these principles, each authorized sponsor will be able to “come up with its own methodology” to apply to the ICOs or tokens that they sponsor.

 

The new legislation is the logical next step after Gibraltar’s launch in January of a license for companies working with distributed ledger technology (which has made it an appealing destination for blockchain startups).

 

Would you like to know more? Then please Contact Us:

 

www.offshoreincorporate.com

 

info@offshorecompaniesinternational.com

 

ocil@protonmail.com

 

oci@tutanota.com

 

oci@safe-mail.net

 

ociceo@hushmail.com

 

 

Estonian Cryptocurrency Exchange & Wallet Service Provider Licenses

Estonia has a favorable tax and legal environment for cryptocurrency exchange companies. It also offers registration for businesses looking to offer Cryptocurrency Wallets.

 

This small European Union country of just 1.3m people is regarded as one of the world’s most advanced digital nations and is fast becoming a viable alternative to the behemoth Financial Services Jurisdictions such as Singapore and Switzerland – its competitive advantage being it offers less red tape and lower establishment/operating costs.

 

Companies aiming to do business in the Cryptosphere can apply for 2 different activity licenses in Estonia:

(a)   A Cryptocurrency Exchange License

(b)   A Virtual Currency Wallet Service License

 

Both of these licenses are issued by the Estonian Financial Intelligence Unit (FIU) and can be applied for separately or together (in fact it’s cheaper to apply for both at the same time). The full procedure to set up the company and obtain the licenses can be carried out remotely with no visit required (at the time of writing, on average, it takes 30 days from receiving all necessary documentation).

 

General

 

The operating license are issued by the Estonian Financial Intelligence Unit (FIU) which is a government body that operates as an independent cell of the Estonian Police and Board Guard Dpt. (Check this link for details: https://www2.politsei.ee/en/teenused/majandustegevuse-luba.dot )

 

The licenses can be applied for at the same time (albeit via separate applications) and at the conclusion of the application process 2 separate Licenses are issued; one enabling you to offer a Cryptocurrency Exchange Services, the other enabling you to offer a Cryptowallet service. For details of the main Acts regulating the activity check this link: https://www2.politsei.ee/en/

 

The Company is classified as a Financial Institution but has no special reporting requirements (other than those which normally apply to an Estonian Company)

 

Estonian Company Requirement

 

To successfully apply for a cryptocurrency exchange and/or wallet service license you will firstly need to incorporate an Estonian Company.

 

This process can be carried out remotely with no visit required and it usually takes about 5 business days for the full procedure. The key features of the Estonian Model of Company are as follows:

 

•          A minimum of 1 shareholder only is required

•          The shareholder/s can be a natural person or a legal entity

•          There is no local shareholder requirement (ie the shareholder/s can come from any country)

•          A minimum of 1 Director only is required

•          There is no local Director requirement (ie the Director/s can come from any country).

•          No secretary is required

•          No stand-alone office is required (only a local registered office and registered agent which service OCI will provide).

•          Beneficial owners’ details must be disclosed to the authorities starting from September 1st 2018 though a Seychelles Foundation can be deployed to act as the beneficial owner/shareholder (Contact us for details of how/why that will work)

 

Tax on Cryptos

 

Estonia also offers a competitive tax environment for such businesses. Features include:

•          Virtual currencies are not subject to VAT

•          Corporate profits are not taxed unless or until dividends are paid

•          Income tax of 20% is charged on gross dividends (calculated as 20/80 of the net dividend).

•          Special conditions apply enabling a Company to apply for a 14% rate beginning September 1st 2018.

 

Set Up Procedure and Documentation

 

Our Legal Team can/will attend to all that needs to be done in order to comply with Estonia’s Anti Money Laundering (“AML”) Regulations including:

 

Internal Security Measures

•          assessment and management of the risk of terrorist financing and money laundering;

•          collection and maintenance of statutory records;

•          performance of the notification obligations;

•          notification of the management as/when required;

•          internal control rules for checking adherence thereto.

 

Rules of Procedure

•          identify low risk transactions and establish the appropriate requirements/procedures to enable the execution of such transactions;

•          identify higher risk transactions, (including risks arising from means of communication, computer systems and other technological developments) and establish the appropriate requirements and procedure for the execution and monitoring of such transactions;

•          establish the rules that ensure that Due Diligence/KYC requirements are met;

•          set out the requirements and procedures for keeping the necessary documents and records;

•          set out the requirements and procedures for an application including instructions to staff etc for how to effectively identify whether or not a person is:

 

(a) a politically exposed person;

(b) a person whose place of residence or seat is in a country where insufficient measures

for prevention of money laundering and terrorist financing have been laid out;

(c) a person with regard to whose activities there is previous suspicion that the person may

be involved in money laundering or terrorist financing;

(d) a person against whom international sanctions have been imposed;

(e) a person with whom a transaction is carried out using telecommunications.

 

Legal Framework & Requirements

 

The legal framework for Crypto Companies in Estonia is governed by the Money Laundering and Terrorist Financing Prevention Act which passed into law in November 2017.

 

We can/will prepare all policy documents and manage the process as regards the FIU acting under a Power of Attorney (PoA). For a remote setup we will require the following documentation:

•          Valid copy of passport *

•          Certificate of non-criminal record from the registry of convictions (not older than 3 months) for shareholder(s), board member(s), ultimate beneficial owner(s) and authorized person/s *

•          Power of Attorney *

•          Brief description of planned business model and CV’s of all participants

 

* Notarized and confirmed with an apostille, in English (or notarized English translation)

 

Would you like to know more? Then please Contact Us:

 

www.offshoreincorporate.com

 

info@offshorecompaniesinternational.com

 

ocil@protonmail.com

 

oci@tutanota.com

 

oci@safe-mail.net

 

ociceo@hushmail.com

 

Company Formation in Estonia

Estonia is a Nordic country of 1.3 million people nestled on the shores of the Baltic Sea in Northern Europe.

 

Since regaining its independence with the collapse of the Soviet Union in 1991, Estonia has become one of the most economically successful of the European Union’s newer eastern European members.

 

Estonia has a highly educated population (English speaking proficiency is amongst the world’s highest) low corruption and sits at the forefront at the development and delivery of both private and, in particular public, services by digital means. Of late it has stolen a jump on rival jurisdictions by offering a specific licensing regime for Cryptocurrency related businesses (see below for details).

 

Limited Liability Companies in Estonia

 

The Estonian private limited liability company (Osaühing or ) is the most common form of business as its shareholders have no personal proprietary liability for the company’s obligations.

 

Key benefits of incorporation in Estonia include:

Tax Efficiency: Zero tax is payable in Estonia if profits are reinvested

Clean Name: Estonia isn’t known as a tax haven yet can deliver the same results

Stability: Estonia is very stable economically and ranks as highly as the US for non-corruption

Easy 2 set up: To set up you just need 1 Director/shareholder + a legal address/rep in Estonia

Speedy set up available: You can own an Estonian Company within as little as 24 hours

Easy to administer: Estonian Companies only require 1 Director and 1 Shareholder

Access to Europe: A Euro VAT number can be obtained enabling you to trade on the Continent

VAT Free: No VAT is payable on transactions within Europe (outside Estonia)

Cryptofriendly: Cryptocurrency related businesses are welcome to incorporate in Estonia

Bank Friendly: Incorporating in an EU country gives you wide access to EU/1st World banks

Language Friendly: (Per its Nordic kin) Estonia ranks VERY highly 4 English Language proficiency

E-Residency available: Estonia offers a Digital ID enabling one to securely access government services in and sign docs/do business in Estonia remotely. 98% of government services can be accessed electronically in Estonia. Check here for details:

https://www2.politsei.ee/en/teenused/isikut-toendavad-dokumendid/e-residendi-digi-id/index.dot

 

Estonia is also one of the most (probably THE most) Efriendly/developed countries in Europe:

  • Tax filing, tax payment, banking and business registration can all be done electronically
  • Public services inc Voting, Government services and Ministries are all accessable electronically
  • Law Courts and Police Services can all be accessed electronically
  • Estonia has deployed Blockchain technology to secure Health Care Data including as regards health records and medicine prescriptions

 

For more details click on this Article: http://www.wired.co.uk/article/digital-estonia

 

Other Features Include:

  • Low Minimum Share Capital Requirement (just 2,500 Euros)
  • Payment of the share capital can be delayed indefinitely (if the Share Cap is under E25K)
  • Low Cost: Incorporation, Legal, Accounting, Banking and other support services are very competitively priced by comparison with the global norms
  • No withholding tax is levied on profit distribution
  • Pre-incorporated shelf Companies are available (including some with current VAT registration
  • You can take up ownership of a new Estonian Company vie the net without needing to leave home

 

Taxation in Estonia

 

Estonia has one of the most progressive tax regimes in the world in that:

  • The tax rate on reinvested profit is 0%
  • Income tax is charged only at a rate of 20% on gross dividends.
  • The general VAT rate is 20%.

 

Corporate profits are not taxed ie (tax rate 0%) unless or until the profits are distributed as dividends; In short, all undistributed corporate profits are tax-exempt. This 100% exemption covers both active income (e.g. trading) and passive income (e.g. dividends, interest, royalties etc) as well as capital gains from sales of all types of assets, including shares, securities, and immovable property.

 

Estonia levies a corporate withholding tax only on profits that are distributed as dividends, share buybacks, capital reductions, liquidation proceeds or deemed profit distributions. Income tax at a rate of 20% is charged on gross dividends (calculated as 20/80 of the net dividend).

 

The standard VAT rate (in Estonian käibemaks, KM) is 20% and applies to all supplies of goods and services inside Estonia. The 9% reduced rate applies to accommodation, books, listed pharmaceutical products and medical devices. The VAT rate on the export of goods, intra-Community supply of goods and certain services is 0% (i.e. exemption with credit). If the annual taxable turnover exceeds 40 000 EUR you will need to register with the Tax and Customs Board as a VAT payer.

 

Employers registered in Estonia (including permanent establishments of foreign entities) must pay social tax on all payments made to employees. The rate of social tax is 33% (20% for social security and 13% for health insurance). Minimum wage in Estonia is 500 EUR/month as of 2018.

 

Crypto Business Licenses in Estonia

 

Estonia has a favorable tax and legal environment for cryptocurrency exchange companies. This small European Union country of just 1.3m people is regarded as one of the world’s most advanced digital nations and is fast becoming a viable alternative to the behemoth Financial Services Jurisdictions such as Singapore and Switzerland – its competitive advantage being it offers less red tape and lower establishment/operating costs.

 

Companies aiming to do business in the Cryptosphere can apply for 2 different activity licenses in Estonia:

(a)   A Cryptocurrency Exchange License

(b)   A Virtual Currency Wallet Service License

 

Both of these licenses are issued by the Estonian Financial Intelligence Unit (FIU) and can be applied for separately or together (in fact it’s cheaper to apply for both at the same time). The full procedure to set up the company and obtain the licenses is straight forward and can be carried out remotely with no visit required (at the time of writing, on average, it takes 30 days from receiving all necessary documentation).

 

Eligibility for such a license is liberally applied (you don’t need be ex Merril Lynch or hold any form of Fund Manager License to be eligible to apply for such a license) and the cost is very reasonable especially compared with the cost of applying for comparable special licenses elsewhere (eg Fund Licenses, Broker’s Licenses etc).

 

Corporate Services in Estonia

 

We provide a full range of corporate services in Estonia including, as required:

  • Company Formation & Administration
  • Legal and tax advisory
  • Virtual office
  • Accounting
  • Bank account opening support
  • Company Secretary
  • Nominee Director
  • Nominee Shareholder
  • Registered Office/Agent
  • E-Residency
  • Applying for Cryptolicenses

 

Prices start from as little as 1,000 Euros.

 

Would you like to know more? Then please Contact Us:

 

www.offshoreincorporate.com

 

info@offshorecompaniesinternational.com

 

ocil@protonmail.com

 

oci@tutanota.com

 

oci@safe-mail.net

 

ociceo@hushmail.com