RAK entered the International Business Company (“IBC”) market in 2007 and as an IBC centre offers:
• Exceptional infrastructure
• High Political/Economic stability
• OECD White Listing
• Strong yet flexible regulatory framework based on global best practices
• Exemption from all Corporate & Income taxes
• Confidentiality
• No local office requirement
• No need to file accounts

RAK is also a regional hub and booming trade centre with access to over 170 shipping lines and approximately 86 airlines connecting to over 100 cities worldwide.

And unlike most Offshore Centres RAK IBCs can own UAA property (both real and Intellectual Property)

Features and Benefits of Incorporation of an RAK IBC include:
• No public record of shareholders or directors
• No audit requirement or requirement to submit financial statements
• The registered office can be located in Dubai (see below)
• No minimum share capital requirements
• No capital restrictions (all capital and profits can be repatriated)
• Access to over 50 Double Taxation Avoidance Treaties (“DTATs”)
• Speedy Incorporation (2-4 days)
• Corporate directors are permitted
• Redomiciliation (IBCs from other companies can redomicile/migrate to RAK and vice versa ie RAK IBCs can migrate to another country)
• Minimum of 1 Director only is required
• Unparalleled Privacy (the UAE has signed ZERO Tax Information Exchange Agreements

RAK General Information

Population

RAK is one of the seven independent Emirates, the current population is approximately 250,000 but this is expected to raise to 400,000 by 2017. Over 50% of the population are expatriates.

Time Zone

The UAE is 4 hours ahead of GMT (+4 GMT).

Political Structure

Prior to 1971 each of the seven member emirates of the UAE (Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaima, Sharjah and Umm Al Quwain), previously known as the Trucial States, had its own existing institutions of government. The Rulers agreed to draw up a provisional Constitution (“the Constitution”) which provided for the establishment of the Supreme Council of the Rulers of all the Emirates as the foremost authority in the Federation and a Council of Ministers as the Executive Branch of the Federation. Federal Ministries of Foreign Affairs, Defence, Justice, Public Health, Communications, Information Interior, Finance and Industry, Economy and commerce, Education, Public Works, Agriculture, Labour and Social Affairs and Planning were established. As a Muslim country, one of the fundamental principles in the Constitution provides that Islamic Law (Sharia) is the main source for the legislation in the UAE. The main aim of the UAE Government Strategy is to ensure sustainable development and a high quality of life for all UAE Nationals.

Infrastructure and Economy

The UAE is one of the wealthiest countries in the world with a GDP of US $103 billion (2004). Dubai’s economy grew by approximately 16% in 2005 and is acknowledged as one of the fastest growing economies in the world. The UAE has the third largest proven oil reserves, however RAK has broadened its economic activity to include an industrial platform, real estate, trade and manufacturing. In addition Tourism is increasing rapidly with approximately 10 million tourists expected in 2007. The emirate of Ras Al Khaimah is strategically located between Africa and the Middle East and between the Far East and Europe, making it a gateway to over 1.5 billion consumers located in countries surrounding the Red Sea and the Gulf. Its infrastructure is of the highest standards with access to more than 170 shipping lines and approximately 86 airlines connecting to over 100 cities worldwide. The strong shipping and transportation sector is composed of most of the leading regional and international freight forwarders, insurers and shipping agents.

Language

Arabic, Persian, Hindi, and Urdu. English is widely spoken.

Exchange Control

None.

Type of Law
Federal, except for Dubai and Ras Al Khaima who maintain their own judicial systems. The Emirates had the constitutional right to opt to join the Federal judicial system or maintain their own independent system. The Federal UAE courts are divided into civil and criminal and are also generally divided to three stages of litigation namely:

• Courts of First Instance,
• Courts of Appeal
• Federal Supreme Court (colloquially referred to as Court of Cassation).

In addition to the Civil Courts each of the seven Emirates maintains a system of Sharia Courts which are organised and supervised locally.

Principal Corporate Legislation

• International Companies Regulations 2006
• Registered Agents Regulations 2006

RAK IBC Information

Type of Company

The International Company (IC) is the most popular option for foreign companies seeking to establish a presence in the UAE.

Procedure to Incorporate

The following steps are required to establish an International Company in RAK:
 Select a name for the company and have it approved by the RAK Free Zone Authority.
 Draw up a proposed memorandum including share capital, share value, power of Directors and object of the company and have it notarised by a Notary Public in the UAE Courts.
 Confirmation whether the share capital has been paid in cash or kind.
 Copies of the Memorandum & Articles of Incorporation and Certificate of Incorporation (if a company) is to be a participant duly notarised & Apostilled and legalised at the UAE Embassy.
 Board Resolution of each corporate shareholder approving the taking up of shares in the new company duly notarised & Apostilled and legalised at the UAE Embassy.
 Details of Company Auditors together with a letter confirming their appointment, if applicable.
 Bank Certificate confirming deposit of the minimum share capital.
 Seek approval from the RAK Free Zone Authority. Once approval is granted, the company will be entered in the Commercial Register and the licence will then be issued by the RAK Free Zone Authority.

Restrictions on Trading
Can only operate within the activities detailed on the Memorandum. An RAK Company can NOT undertake any Cryptocurrency related activity.

Powers of Company

Companies Law stipulates that an IC may engage in any lawful activity except for insurance, banking and the investment of money for others and restrictions apply to conduct local business.

Language of Legislation and Corporate Documents

English.

Shelf Companies Available

No.

Time to Incorporate

1-2 weeks.

Name Restrictions

Any name that is identical or similar to an existing name. Any name of a major international corporation where written consent to incorporate in not available. Any name that contains a registered trademark not owned by the company. Any name that the registrar may find undesirable, offensive or misleading.

Language of Name

English.

Names Requiring Consent or a Licence

In certain circumstances, the prior consent of a Federal Ministry or competent local authority will be required. These activities include: Oil & Gas, Banking & Investment, Financial Services, Insurance, Media, Transport, Construction, Telecommunications, Real Estate Management, Architectural and Engineering Consulting, Tourism, Shipping, Civil Aviation, Legal Services, Medical Services, Education. Any name that contains the words: state, government, municipal etc. and may wrongfully suggest a patronage of such.

Registered Office Required

Yes, must be maintained in RAK.

Suffixes to Denote Limited Liability

Ltd or Limited.

Disclosure of Beneficial Ownership to Authorities

Yes.

Authorised and Issued Capital

The minimum requirement for authorised capital is DHs 1,000 which must be fully paid up.

Classes of Shares Permitted

May neither be negotiable or divisible. Ordinary shares, preferred shares, deferred shares, and shares with or without voting rights.

Taxation

No Corporate, Withholding or Personal taxation.

Financial Statement Requirements

Yes.

Directors

Minimum one. Powers and duties to be specified in the Memorandum. Corporate Directors are permitted.

Shareholders

Minimum of one.

OCI RAK International Business Company Packages

At OCI we believe in giving you more for your money than would the average IBC formation service. Hence included in the incorporation package for your RAK IBC is the following:

Services:

• Unlimited name availability inquiries
• Advice from an experienced International Corporate Lawyer on how to structure your company
• Preparation (overseen by a lawyer) of application to incorporate the company
• Preparation (overseen by a lawyer) of the company’s memorandum of association
• Preparation (overseen by a lawyer) of the company’s articles of association
• Attending to filing incorporation request with the company registry
• Attending to payment of government filing fees
• One year’s Registered Agent service in the country of incorporation
• One year’s Registered Office service in the country of incorporation
• Mailing address in the country of incorporation
• Delivery of Incorp pack by international courier (ie DHL/Fedex/TNT etc)
• Unlimited free legal consultations for 12 months
• Doing Due Diligence on up to 3 owners/members

Documents included in your Incorp pack:
• Certificate of incorporation
• 2 sealed/stamped copies of the company’s Memorandum of Association
• 2 sealed/stamped copies of the company’s Articles of Association
• Resolution appointing first director/s
• Resolution appointing first shareholder/s
• Up to 5 share certificates
• Resolution to open a bank account
• Resolution to rent an office
• Resolution/s to engage a Phone, Internet & Website service provider
• Resolution to hire a staff member/s
• Resolution to appoint a company lawyer
• Resolution to appoint a company accountant
• Resolution appointing you as the company’s authorised representative in commercial negotiations
• Resolution issuing a Power of Attorney in your favour
• Agreement authorising you to represent the company in commercial negotiations
• Power of attorney authorising you to sign documents on behalf of the company
• Register of directors
• Register of shareholders
• Expression of wishes (ie an “Offshore” Will)
• Lawyer authored User Guide (“How to Use Your Offshore Company”)

Price (all inclusive): $US 2,750

With tax effective offshore company management (ie including Professional Corporate “Nominee” Director, Shareholder & Company Secretary): + $900

From 2nd year: $2,500 (+Nominees if required)

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

Are you tired of excessive onshore taxes and heavy regulation? If so you might want to consider setting up a Freezone Company in the UAE. The most attractive option at present for such clients would establishment of a Dubai IFZA Company.

An IFZA Corporation would enable you to engage in any of the following:
1. Holding activities (e.g. receiving dividends from subsidiary companies)
2. Consulting services
3. IT-related business

If you’re engaged in only one of these activities, a single license would be sufficient. However, if you intend to carry out two or more of the above activities, a separate license may be required for each.

The Proposed Activity for such clients would be category 6499001 ie Investment in Commercial Enterprises & Management

This category includes firms and holding companies formed in order to invest their funds through the establishment of subsidiary firms which carry out various commercial activities, as well as transport, contracting and financing activities, besides other investments or shareholdings in commercial enterprises. This also includes the management of such subsidiary companies and the organization of their affairs. Whilst UAE domestic companies are liable to 9% tax its our understanding that non UAE sourced income generated by such a Company would be free from tax in the UAE.

An IFZA Corporation also entitles you (subject to passing medical tests) to apply for a residence permit in the UAE. With a carefully managed exit strategy, and provided you’re away from your home country at least 6 months every year (and, ideally, provided you are not seen to have retained a “substantial connection” to your home country) this could enable you to escape your local tax net and become a UAE resident for tax purposes, greatly enhancing your bottom line (the UAE does not levy personal income tax on individuals).

About IFZA.

The International Free Zone Authority (IFZA), located in Dubai Silicon Oasis, is one of the UAE’s most dynamic and cost-effective free zones for company formation. Designed to attract both startups and established international businesses, IFZA offers flexible licensing options and a streamlined setup process.

Key Highlights include
• Business Ownership: 100% foreign ownership permitted.
• Tax Benefits: 0% corporate and personal income tax on qualifying activities.
• Licences Available: Professional, Commercial, Industrial, and Holding licences.
• Office Solutions: Wide range of options — from Flexi-desks to executive offices.
• Company Types: Single or multiple shareholders (individual or corporate).
• Banking & Residency: Access to UAE banking and eligibility for residence visas.
• Fast Setup: Incorporation within a few days with minimal documentation.

Why Choose IFZA:
• Competitive setup and renewal costs.
• No physical presence requirement during incorporation.
• Reputable jurisdiction under UAE federal law with strong compliance standards.
• Ideal for consultants, traders, e-commerce operators, and global entrepreneurs seeking a Dubai base.

Cost

To set up such a Company via OCI costs would be as follows
• License package: 5,500 USD
• 2 years residence visa processing: from 1470 USD per visa
• OCI incorporation fees: 2,500 USD

Estimated first year: 9,470 USD

The above packages includes a flexi desk solution, that provides a registered business address and access to shared office facilities.

Annual renewal is in the same range as the license package, provided there are no structure changes (e.g. visa quotas or office upgrade).

The residence visa is valid for 2 years and renewed separately at a similar cost.
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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

The Limited Liability Companies in Panama are regulated by the Commercial Code and Law 4 of January 9 of 2009 (hereinafter “the law), which replaces Law 24 of 1966.

Among the most interesting features of the Panama SRL we find the following:

1. The new Law provides for an unlimited number of partners, which can be individuals or corporate bodies, with no restrictions as to their citizenships or country of residence. However, two are the minimum number of partners required. Nominees can be appointed to reach greater privacy.

2. The new law does not provide for a minimum or maximum capital, therefore leaving it open.

3. The names of the partners must be registered with the Panama Public Registry, additionally specifying the Capital each contributed.

4. The economic liability of each partner for the obligations of the company will be limited to the amount of their participation made or promised.

5. One Manager can be appointed, in which case it can be an individual or corporate body of any nationality or jurisdiction of incorporation. Also in this case his/her name must also be recorded on public records.

6. No meetings are required to be held, unless otherwise is stated on the articles of incorporation.

7. If the articles so dispose, the manager of a Panama SRL can represent the company in any judicial or extrajudicial proceeding, but it will require a special power of attorney to carry on acts that go beyond the normal course of business. He/she will need authorization to transfer assets and to encumber assets or secure debts of the SRL.

8. Once the SRL is recorded it acquires a different legal personality from that of its members and managers.

9. For tax purposes, this is a transparent vehicle, that at least in the United States it can be considered as a “disregarded entity”.

10. The name must bear one of the following two endings: “SOCIEDAD DE RESPONSABILIDAD LIMITADA” o S. DE R.L. The name cannot be similar in any way or form to a name already registered, notwithstanding if it is a different type of company, like an S.A., for example.

To incorporate an LLC Company in Panama with OCI usually costs $US1,500 and from 2nd year $990. We can also supply Nominee Directors (3) for $1,200 per year.

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

CORPORATE STATUS

A foundation company is a body corporate with a legal personality distinct from its members, directors and other connected persons. As foundation companies are governed by the Companies Act (Revised), except where it is inconsistent with the Foundation Company Act, 2017, they benefit from an extensive body of case law and are well recognised in other jurisdictions.

TYPICAL USES

Foundation companies may be an attractive alternative to trusts, particularly for clients in civil law jurisdictions where a trust may be unfamiliar or the tax treatment uncertain, and offers many of the features of a trust that make them ideal succession planning and asset protection vehicles. Clients from common law jurisdictions frequently use foundation companies to hold higher-risk assets such as shares in family businesses and as part of family office and private trust company (PTC) type structures.

It is possible to use foundation companies to act as ownerless or orphan vehicles making them suitable solutions in the context of PTCs, investment funds or in wider commercial transactions.

By way of example, foundation companies may be suitable for use as:
• holding vehicles for shares in a PTC (Private Trust Company)
• a protector or enforcer of a trust
• special purpose vehicles in financing or commercial transactions
• a vehicle for cryptocurrency related projects, from initial coin offerings (or ICOs) and trading operations
• a traditional succession planning and asset protection vehicle
• a vehicle for philanthropic uses.

INCORPORATION

Any new or existing company incorporated under the Companies Act (Revised) may apply to the Registrar of Companies (Registrar) to be a foundation company provided certain conditions have been met. The conditions are that the foundation company:

• is limited by shares or by guarantee, with or without share capital;
• has a memorandum that:
o states that it is a foundation company;
o describes its objects (which may include beneficiaries);
o provides, directly or by reference to its articles, for the disposal of surplus assets on winding up; and
o prohibits dividends or other distributions to members;
• has adopted articles; and
• has a secretary who is a person licensed to provide company management services in the Cayman Islands (Secretary).

CONSTITUTION

A foundation company’s constitution may grant any person the right to become a member. It can cease to have members if (i) its memorandum permits, and (ii) it continues to have a supervisor, being a person, other than a member, who has a right to attend and vote at general meetings. Once it has no members, the foundation company will not be able to admit new members or issue shares unless its constitution permits it.

A foundation company’s management will be carried out by its directors. In addition, its constitution may give rights, powers and other duties to members, directors, supervisors, founders or others relating to:
• admitting, appointing or removing members, supervisors and directors;
• making and amending any bylaws;
• the supervision of the foundation company’s management and operations;
• enforcing duties;
• general meetings and voting on resolutions;
• altering the constitution; and
• winding up and disposing of surplus assets.

BYLAWS

In addition to a foundation company’s constitution, it is possible for a foundation company to adopt its own tailored bylaws in order to modify or expand upon its management and operation. Utilising bylaws has the advantage of being a private document separate from the constitution, which does not need to be filed with the Register (unlike the constitution), and can offer more flexibility through amendment over time.

RIGHTS AND DUTIES

Unless varied by the constitution, duties are owed only to the foundation company itself and rights are enforceable only against the foundation company. This can make foundation companies well suited to holding higher risk investments because beneficiaries do not have direct rights of action against trustees as they would in a trust context.

Rights to information, such as reports and accounts, are limited to interested persons who are defined under the Foundation Act as any of its members or supervisors, someone with the right to be a member or supervisor or someone declared under the foundation company’s constitution to be an interested person. Interested Persons can bring actions in the name of or on behalf of the foundation company for the enforcement of directors’ duties in the same way as members of traditional companies.

Beneficiaries of a foundation company (if any) have no powers or rights in relation to the foundation company, its management or its assets.

SECRETARY

A foundation company must have a Secretary, licensed to provide company management services in the Cayman Islands. The foundation company’s registered office must be at its Secretary’s registered office and the Secretary.

COURT INTERVENTION AND RESOLUTION OF DISPUTES

The firewall provisions of the Trusts Act apply to foundation companies providing protection against claims in foreign courts. Similarly, the ability of a trustee of a Cayman Islands trust to apply to the Grand Court has been extended to foundation companies, offering assistance in contentious and non-contentious situations.

A foundation company’s constitution may require the resolution of disputes issues by arbitration and any resolution manner prescribed by the constitution cannot be set aside unless a party has committed fraud or conducted itself in bad faith.

TAX TREATMENT

A foundation company is not subject to any income, withholding or capital gains taxes in the Cayman Islands. Members or beneficiaries of a foundation company will not be subject to any income, withholding or capital gains taxes in the Cayman Islands with respect to their interests, nor will they be subject to any estate or inheritance taxes in the Cayman Islands.

In addition, a foundation company, which is incorporated as an exempted company, may apply for an undertaking that any law change to introduce taxes in the Cayman Islands will not apply for a period not exceeding 30 years from the date of approval of the application.

FEES

Every foundation company is required to pay an annual Companies registry fee to the Registrar in January of each year of CI$700 (US$ 854). The foundation company secretary is also likely to charge an annual fee.

In addition, there will be legal fees associated with the incorporation of a foundation company which will vary depending on whether the constitution needs to be tailored and whether bespoke bylaws are required.

Caymans Foundation Company Prices & Inclusions

OCI’s set up fee for a Caymans Foundation Company is $US5,125*. This fee includes the following:
• Government Fee on Incorporation – Share capital of US$50,000 or less
• Registration of Foundation
• Filing of Register of Directors and Officers
• Beneficial Ownership Compliance and Filing
• Economic Substance Classification
• Stamp Duty
• Notary Fee
• Professional Fee
• OCI supplying a local Foundation Secretary (year 1)

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

*Note depending on the proposed business activities of your Caymans Foundation Company the Caymans Company Registrar may ask to sight a legal opinion advising that the Company’s business activities are not considered licenseable activities under the Caymans VASP Law. The above quote does not include the obtaining of such an opinion.

Are you looking to create and sell a Crypto Token? Or are you looking to launch a DEX?

There are various ways to Legally structure such enterprises but the most common approach we see to the legal structuring of such organizations is to create a collective of legal entities including:

1. A DAO Foundation +
2. A Developer Company +
3. A Holding Company +
4. A Token Distribution/Issuance Company (Token Co) ie the Exchange intends to sell it owns native Token +
5. A Management Company

In terms of roles the DAO Foundation can potentially do several things ie it can/would/could:

• Engage/pay the Developer Co
• Act as an Incubator fund for collecting seed Capital (eg privately introduced/early stage investors and/or DAO members could make donations to the Foundation and in return receive tokens or a SAFT ie a Simple Agreement for Future Tokens)
• Own the Tokens as developed and or it could own/provide working capital to the Exchange Company (ie act as a/the Treasury)
• It could be used to incentivize sweat equity (ie it can be used to gift and/or air drop tokens to high performing team members or to benefactors)

The Developer Company would be engaged to do the IT/Tech work and would typically be owned by the Tech Members of/Coders for the Collective. This enables the software developers to be remunerated on a commercial basis for the work they do.

If you plan to develop/sell your own Coin or Token (ie a Token that could be publicly traded) then ideally (eg to minimise liability exposure to the rest of the Group) this function should be carried out by a stand alone Company. This Company could be owned by the DAO Foundation and or by stage 2 Investors/founders collectively via a Holding Company .

To ensure that the Founders get paid fairly for running the business ideally the Founders should form their own Management Company. This Company would be engaged via contract by the Token Issuing Co to manage the day to day affairs of the business.

Sometimes we see the DAO Foundation form an IP Company so that the technology/IP can be sold separately later and/or protected from law suits. Where an IP Company is deployed typically it is owned by the DAO Foundation and it hires/engages the Developer Company.

Occasionally we see a Holding Company deployed to own the Exchange Co and or the Token Issuing Co. Typically post launch Commercial Investors (eg if/when you need to do a 2^nd capital raise to fund expansion) would hold shares in this Company as would the Founders of the Enterprise.

(In case you’re wondering what a DAO is you might want to check this article: https://offshoreincorporate.com/what-is-a-dao/ )

How to use a Foundation to help launch an ICO

Private Foundations are increasingly being used Internationally as the preferred fund-raising vehicle for entrepreneurs looking to launch ICOs. The purpose of this Article is to examine how Foundations are typically being used in such instances (and to look at possible commercial alternatives)

So first up…  What is a Foundation?

A Foundation is a legal entity set up by a person called a Founder (like a Settlor in the case of a Trust) which is managed day to day by a person called a Councillor (akin to a Trustee in the case of a Trust but more like a Company Director in terms of duties/responsibilities).

There are in essence two types of Foundation:

(a)  Foundations with beneficiaries

(b)  Purpose Foundations

Type (a) is the more traditional model ie where an entrepreneur or investor sets up a structure which is designed to hold/manage assets for the benefit of 3^rd parties called beneficiaries. In this instance the Foundation is designed:

(i)              to minimize the amount of tax that would otherwise be payable by the Founder on profits made by any asset/company that the Foundation owns; &/or

(ii)            to protect assets from any law suit/judgment that might be foiled/lodged against the Founder; &/or

(iii)          as a cross generational family wealth management vehicle

Type (b) is where a Foundation is set up to fulfil a specific purpose. That purpose might be Charitable or non-Charitable (eg to hold shares in XYZ Company”.

In the case of a Crypto enterprise what actually happens is that a Foundation is established under the law of the jurisdiction where it is registered with a purpose which allows it to justify investing in the particular start-up in question (although, it needn’t be limited to investing in a specific start-up –) or the Foundation could be established for the purpose of owning a/the Crypto Token Issuing Company! Moreover where a Foundation doesn’t have named beneficiaries (ie making it virtually impossible to identify the underlying owners of the Crypto Token Developer/Issuing Company) this acts as an additional deterrent to law suits and regulatory over reach (In our experience most Crypto related Foundations are established as Purpose Foundations).

In terms of management the Foundation is independent and controlled by a board of appointed individuals (“Councillors) who oversee its management and operations (including any grant making). The Foundation takes in the money paid by individuals (which conceptually could almost be considered a donation) in exchange for crypto tokens, and then uses the money to support the development of platforms and technologies that can arguably deliver the foundation’s purpose (which is obviously in practice intended to mean funding the start up at the centre of the ICO).

To summarize a Foundation when deployed as part of a Crypto venture can deliver considerable utility including:

Protection from legal liability: A Foundation is an ownerless vehicle. Nobody “owns’ a Foundation.  As such if your Crypto Token issuing Company were to be sued or attacked by Regulators the underlying Founders of the venture should be protected from liability.

Tax Planning Options: A Foundation when deployed to own an income producing company (and with a well thought through “Offshore” management/directorship structure) can potentially enable the Founders of the enterprise to lawfully avoid having to declare/pay tax at home on (what would otherwise be) their share of the Company’s profits.

Seed Capital raiser: A Foundation can be used to raise startup/development capital from benefactors and to reward parties who contribute to the development of the Foundation’s Ecosystem and related projects

Development Engine Room: A Foundation can be used to develop a Token/Cryptocurrency and to reward parties who contribute to the development of the Foundation’s Ecosystem and related projects

All that said there’s no one perfect way to structure a Crypto Token Enterprise. Every business is different. Moreover, you don’t necessarily need to kick off with a menage of Companies – some can be “bolted on” later as the business grows.

The good news is that OCI can provide detailed guidance in this regard ie we can assist you to tailor a Legal structure designed to meet your particular goals/needs having regard to your budget, potential for legal exposure, location, growth aspirations and time frames.

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

A DAO is a Blockchain structure (like a secure database), that any member can leverage to self-govern through participation; A DAO sets rules – baked into code – and permits voting through digital tokens (a form of cryptocurrency) — all while leveraging smart contracts. Only that DAO’s Token holders have the power to vote.

In essence, a DAO allows groups of participants to create organizational forms beyond the hierarchical, top-down corporate firm (which must be responsive to the needs of a board and shareholders). DAOs essentially eliminate or minimize the roles of executives and managers in the organization, relying instead on transparent rules that apply to all members and participants

The primary aim behind the creation of a DAO is to create a virtual entity to replace the central management of previous forms of organization. A decentralized autonomous organization (DAO), is an organization, particularized by rules encoded as a computer program, that is transparent, and controlled by the organization members. In terms of decision making a DAO is, in effect, unable to be influenced by any outside party including any central government.

DAOs are particularly prevalent in the Ethereum blockchain ecosystem, combining ideas about organizational forms, coordination, network effects, blockchain, and smart contract technology. A DAO allows a group to organize around a mission or goal and to coordinate the mission via smart contracts, enforced immutably and autonomously on the blockchain. DAOs represent an evolution in how people coordinate with one another, as the organization itself is autonomous from any third party intermediary’s influence and goals.

The main reason a DAO is formed is to decentralize and automate the governance of an organization. The rules by which a DAO operates are encoded as a computer program that is accessible via the blockchain, and controlled by all of the organizing members, rather than by a central governing board. Since the blockchain is essentially a public record, the DAO seeks to provide total transparency, requiring that all of its financial transaction records be recorded by a public facing blockchain. There is no top-down hierarchal structure to a DAO; A DAO depends almost entirely on the operation of autonomous smart contracts to enliven the rules and carry out the decisions made by/within the organization.

How to Form a DAO

There are typically a number of steps involved in the formation of a DAO. You’ll need to

1. Define the structure of the project eg What do you expect your DAO will achieve? What are your goals?
2. Decide on the type of DAO you want to create (eg a Grant DAO? Or an Investment DAO? Or a Social DAO? Or a Collector DAO? Or a Media DAO? Or an Entertainment DAO? Or a Philanthropy DAO?)
3. Decide what features are to be included in the Tokens that you issue to persons wanting to be part of your DAO (eg Voting rights, Incentives/rewards, Executive participation opportunities etc)
4. Create your DAO (there are several DAO startup templates one can access on the Blockchain + tools are also available in the market to help you. They can help in ascertaining the legal infrastructure of the DAO, DAO coin minting, Building teams, Finding members etc)
5. Encode your rules: Get your DAU rules encoded in a smart contract (which renders the rule immutable/unable to be changed). Rules can be encoded using easy to purchase DAO tools or by simply hiring a blockchain developer to do it for you
6. Create your DAO Treasury (After you’ve completed your DAO token’s ICO supply and allocation, it’s essential to guarantee that you can secure the collected funds. There are now numerous popular east to access DAO Treasury Tools including Gnosis Safe- Platforms, Juicebox- Juicebox, Llama, Parcel, Utopia etc
7. You’ll need to decide on what Governance tools you want/need (eg you’ll need to implement systems for holding discussions, conducting voting, and managing funds and for depositing/managing/lending governance tokens etc).
8. You’ll need to create a community (a  trustworthy, independent community is the strongest pillar of a DAO ecosystem. An interactive, engaged, and strong community can help in the constant expansion of the DAO project. Moreover the success of a DAO project largely depends on how freely the community is able to participate in the decision-making and management of the DAO project).

There are a ton of resources out there that can help you sort out the above and more. Here are some examples:

https://blog.liquid.com/create-dao

https://www.blockchain-council.org/dao/how-to-create-run-a-dao-a-comprehensive-guide/

https://academy.binance.com/en/articles/how-to-create-a-dao

https://sensoriumxr.com/articles/how-to-create-a-dao

I’m guessing you’ve already made the above-referred decisions which means the next thing you need to decide is what kind of legal form do you want your DAO to take? There are a number of options worthy of consideration in that regard… and OCI is fully across ALL the options!

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

Could China have created an attractive new Tax Haven???

What China is doing with Hainan – a huge island to the south of the mainland (50 times the size of Singapore!) – is quite extraordinary: they’re essentially making it into a completely different jurisdiction from the rest of the country, and an extremely attractive entry gate for the Chinese market.

You can now import most products in the world (74% of all goods) entirely duty free into Hainan. And, if you transform the product and add 30% value locally, you can then send it to the rest of mainland China completely tariff-free. For example: You could import beef into Hainan tax free. Slice it and package it for hotpot in Hainan: it can then enter all mainland supermarkets duty-free.

The Hainan Province also offers an attractively low corporate tax rate ie 15% which is lower than Hong Kong (16.5%) and lower than Singapore (17%) AND lower than the rest of mainland China (25%).

That’s not all, Hainan now has different rules from the rest of China in a number of areas including:

HEALTH: In essence, the rule here is that if a medicine or medical device is approved by regulatory agencies anywhere in the world, it can be used in Hainan – even if banned on the mainland. Which undoubtedly makes it THE place in the world with the widest range of medical treatments available.

NO FIREWALL: Companies registered in Hainan can apply for unrestricted global internet access

OPEN EDUCATION: Foreign universities can open campuses without a Chinese partner

VISA-FREE: 86 countries get visa-free entry into Hainan, probably one of the most open places in the world

CAPITAL: Special accounts let money flow freely to and from overseas – normal mainland forex restrictions don’t apply

To summarize, China is running an extraordinary “radical openness” experiment in Hainan. They are essentially creating a “greatest hits” of global free zones: Singapore’s tax regime combined with Switzerland’s medical access blended with Dubai’s visa policy – and all in one giant tropical island attached to the 1.4 billion people Chinese consumer market!

And what we know from the Hong Kong free trade port experiment, the growth of Singapore and of late the staggering upsurge of capital, entrepreneurs and professionals migrating to Dubia/UAE is if you create a low regulation low tax Corporate operating environment the money will follow!

Watch this space for developments…

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity

The OCI team has been assisting clients to form/manage Offshore Companies for over 25 years. We’ve seen many cases where a/the client’s Offshore Company is deployed to acquire a residency for the client without anybody learning that the client actually founded or is secretly is behind the Offshore Company. Here’s how that typically pans out:

(a)  You would form a tax free Offshore Company (ideally in a location where the Company owners details are not publicly accessible information)

(b)  You would identify a /the home you wish to purchase

(c)  The offer to buy the property would come from “Offshore” ie it would be submitted via email or over the web by your Offshore Company (“OC”)

(d)  The OC would need to deploy an Offshore (ie nil tax jurisdiction based) “Nominee” Director – and the Nominee Director would need to sign all the paperwork including the sale/purchase contract and the transfer documents (+ the real estate agent’s appointments docs – see below)

(e)  The OC would then hire a Property Manager/Real Estate Agent to find a tenant/someone to rent the property

(f)   The Property Manager/Real Estate Agent would advertise the property for rent at fair market value (which of course could be at the lower/lowest end of the scale)

(g)  You would apply to rent the property

(h)  The OC would instruct the Property Manager/Real Estate Agent to accept your application

(i)    You would pay rent to the Property Manager/Real Estate Agent who would then deduct a commission (anywhere from say 5% to 10%) and pay the nett rent to the OC. You are in effect paying rent to yourself (less a small commission)!

The secret is commercial reality ie it needs to look and smell like an ordinary/typical arms’ length property acquisition (& rental) deal… (and discretion is key – ideally you wouldn’t want the selling agent or the property manager to know that it’s actually an Offshore Company formed by you that is buying/renting the property).

AND if you live in a more sophisticated jurisdiction, if you want to have the option of potentially avoiding or limiting CGT/rent taxes/etc, (and /or to avoid being classified at law as the “beneficial owner” of the Company  - which could trigger local reporting requirements) you’d need to also set up a Private  Foundation ie to act as shareholder of the Company

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

As you may know St Vincent & The Grenadines (“SVG”) recently passed regulations to bring to life their previously legislated VASP Act.

In short any SVG Company doing Cryptocurrency related business is now required by law to apply for a VASP License in SVG or face substantial fines/legal penalties.

BUT there is an alternative.

If you don’t have the cash or the wherewithal to apply for a VASP License what you could do is you could redomicile (ie migrate) your SVG Company to an alternative “Offshore” jurisdiction.

The last remaining “Offshore” (nil tax) jurisdictions which do not have VASP laws are:

• Panama – Check this link for info: https://offshoreincorporate.com/panama-offshore-companies/ &
• Samoa – Check this link for info: https://offshoreincorporate.com/samoa-international-business-companies/

Given:

(a)   The legal certainty that Panama offers (the Panama legislature previously passed a VASP bill which the Panama courts declared invalid); +

(b)   That Panama offers superior economic stability; +

(c)   That Panama has much more infrastructure (including International banks, muti national Law/Accounting firms etc)

the most popular choice of jurisdiction for OCI clients to migrate to, historically, thus far has been Panama.

How To Redomicile a Foreign Company to Panama

Law Decree Number 16 of 1958 regulates the re-domiciliation of foreign corporations.

In order for a foreign Corporation to re-domicile to Panama the Company must be authorized to do so by the laws of the country in which it was originally registered.

The foreign Corporation must also submit the following documents:

● Copy of the Articles of Incorporation and all the modifications made to the articles of incorporation (if any) and in general copies of all corporate documents +

● Certificate of incumbency with Apostille or legalized via the General Consulate of Panama in that country, which contains the full names of the persons that integrate the Board of Directors and of the Officer or Officers of the corporation +

● A Resolution that authorizes the transfer of the domicile to the Republic of Panama (OCI can/will draft this document);

● Submission of KYC just like for a regular incorporation.

All the documents issued abroad must be legalized by the Apostille or by the General Consulate of Panama and translated to Spanish by a Panamanian licensed translator.

Foreign companies that re-domicile to Panama can continue to be subject to the laws of the country of origin in regards to their statutes or articles of incorporation, but they are subject to every law of public order of the Republic of Panama.

Said corporations can start operating in or from Panama only when they comply with all the requirements established in the Panamanian law.

After the re-domiciliation is duly registered in the Public Registry we provide a certificate of existence with Apostille. This document certifies that the company is registered in the Panamanian public registry along with all the pertinent data, such as directors, social capital, etc.

For the registration of a foreign company in Panama our fees are the same as for the formation of a new company, plus the costs of the translation of documents to Spanish.

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

Effective January 1st, 2023, the BVI Business Companies Act was amended to introduce a requirement for business companies to file annual returns/financial statements annually.

The following companies are exempt from the requirement to file annual return:

• Publicly listed companies;
• Entities that are regulated by BVI FSC and are required to provide financial statements;
• Entities that already submit annual return to BVI Inland Revenue; and
• Entities that commence liquidation before the annual returns filing date becomes due.

The standard financial year in the BC Act is January to December, but the company can select a different financial year (which will run into 2025 in some cases). It is our recommendation that if the company intends to change its financial year, that it be changed to the renewal year of the company i.e. May to April with filing coming due from May the following year or November to October, with filing coming due

from November the following year. This will allow the Registry renewal and the annual returns filing to become due at the same time each year and reduce the multiple interactions with the end client. If the company decides to change the financial period a resolution will be required to approve the change.

The filing window for Annual Returns is within 9 months after the end of the financial year/financial period. There are hefty fines associated with non-filing both for the company and for us as the Registered Agent.

AUDITED FINANCIALS

Audited financial statement is not a requirement. The Annual Return form can be completed by the company.

ANNUAL RETURN FORM AND FEES

Fillable Annual return forms will be supplied in PDF and Excel for your use.

Effective January 1st, 2024, the annual returns filing must be up to date before we can issue a Certificate of Incumbency. The Certificate of Incumbency will be issued once the 9 months filing window has not closed.

Annual Return fees should be paid with the renewal invoice to avoid any delays in filing, but if the invoice is requested separately, the payment is required at the time of submitting the Annual Return form for filing.

There is no requirement for the Annual Return to be signed but we recommend that it be signed by one of the directors for record purposes.

PENALTIES

Where a company fails to file its annual return within the 9 months after the financial period has ended, the Registered Agent is required to inform the Registry and the following penalties will apply:

(a) For the first month or part thereof that the annual return is overdue a penalty of $300 will apply; and

(b) For each month or part thereof after the first annual return is overdue a penalty of $200 shall apply up to a maximum of $5,000.

If the Registered Agent fails to inform the Registry that a companies has exceeded its filing period, a penalty of $3,000 per company will be imposed on the Registered Agent.

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

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.