We make it easy to create companies that can be managed purely online. The setup process is handled electronically with no need for paperwork. Once incorporated your company is represented by smart contracts on the xDai blockchain (Gnosis Chain). The management of the ownership is done as a transfer on the blockchain. 

At Korporatio, we call these smart companies. These are real companies, just like traditional companies, but better. It can own physical assets if you desire or even shares in other companies.

Our role is to help you set up these companies. We provide the technology that links the old world and the new. In this blog, we will briefly cover the differences between smart companies and traditional companies, and then provide you with an overview of the products we offer and in what jurisdictions.

 

How do our companies differ from traditional companies?

Setting up a traditional company is a bit of a pain: there can be lots of forms to complete with multiple different stakeholders. It is generally a lengthy and time consuming process. In countries such as Italy, setting up a business entity can take up to 30 days. While in business-friendlier regions like Singapore or offshore jurisdictions, this can still be a matter of weeks from inception to completion.

In our offering, we streamline this process by providing incorporation in jurisdictions that already allow 100% electronic registration. To make life easier for you when managing your company, you simply interact with a smart contract that represents your company. Everything is digital so no time is wasted sending paperwork to a government. You can transfer shares in real-time rather than wait weeks.

Smart contracts are pieces of code that reside on a blockchain. Just to help you understand what they are, let’s take a quick look at the definition from Wikipedia.

A smart contract is a computer program which is intended to automatically execute, control or document legally relevant events and actions according to the terms of a contract or an agreement.

The main point you need to know is that our smart contracts contain logic for managing the ownership of the smart companies. The blockchain provides the security such that no one can tamper with your company ownership. Blockchains provide a guarantee that your record of ownership is around forever.

We discuss the differences in more detail in a previous blog: Smart Companies vs Traditional Companies.

Structures and Jurisdictions

Now that you have some understanding of what a Smart Company is, where can you incorporate one?

At the time of writing we offer incorporation in the following jurisdictions:

This list changes from time-to-time due to changes in government or partner fees, or the regulatory environment. All of our companies are legal offerings and all clients will be required to perform KYC. By this we mean that you will need to fill out a document with some personal details as well as submit a scan of your passport, plus a proof of address. Please note that we don’t offer incorporation with bearer shares.

Most of our product offerings are Smart Companies as you’ve heard us talk about so many times, but we now also offer Private Foundations in Panama and Seychelles. We teased these newest offerings in our previous blog: Recap Q2 and Q3 2021.

What we haven’t covered previously is an offering around a “legal form of DAO”. If this is new to you, don’t worry. Let’s explore!

 

New offering: Legal DAOs

If you have been following the cryptocurrency market lately you are probably becoming more familiar with the terminology and ideas associated with this new technology. A big one is DAOs, Decentralized Autonomous Organizations. In short, a DAO is an unincorporated collection of people working together. DAOs use smart contracts to assist in the management of the funds as well as voting on proposals. So users would contribute their tokens into the same smart contract, then they would vote upon how those funds are used.

One of the defining aspects of DAOs is that they have no legal entity behind them. This provides a lot of flexibility but one major concern is that this does not mean the participants in a DAO bear no liability for their actions. You could view this like an unlimited liability partnership. 

This makes DAOs unattractive for many people, but we have a solution.

How to solve the problem

We can help you to create a Foundation where the DAO participants are the beneficiaries of the Foundation, which is a legally recognized entity that is able to hold assets of any kind. Real assets or crypto assets. Both are good.

However, it must be noted that a Foundation cannot conduct business activities.

For the same group of people to conduct business activities they could do one of two things: they could incorporate a company (an IBC) instead where the participants are shareholders of the company or, we can help to create a Foundation that owns the IBC. The participants would be beneficiaries of the Foundation that now owns the company.

The DAO can now perform business activities inside the company, such as employing people to play in the latest Play-To-Earn games. Once the income is collected, the DAO members can vote on how to spend the income. All of this with the limited liability offered by a business structure.

Be aware that the tokens for an IBC are securities, this means you need to run due diligence on any address that owns the token and most importantly, you need a license to sell/offer these tokens to the public market. But, foundations don’t have shares and therefore, beneficiaries aren’t required to run KYC in order to be considered as such. Only the protector (1 person of company) of the foundation will need to disclose his/her/it identity. 

Ok that’s a lot of information for now. If you have questions on anything please get in contact. We will provide a link to the best place to contact us at the bottom of this blog.

Now that you have an idea of our product offerings, we felt it is worth providing an idea of our typical clients.

 

Typical Clients

Who are our typical clients? Well, this is a tricky one to answer. We get many referrals from the law firms, consulting firms and VCs that we partner with, which means there isn’t a typical client. Some of our clients are not the most tech savvy and we’ve helped them create an Ethereum wallet in order to manage their Smart Company.

Clients who find us online, such as from Twitter, tend to be technology entrepreneurs and have some familiarity with blockchain technology already. They most likely know about Ethereum and how to set up a wallet already.

Here are a few example clients that we’ve helped create smart companies, naturally we can’t share names due to legal reasons:

  • Digital nomad running a dropshipping business
  • Crypto startup looking to launch their NFTs and create a governance token to manage its DAO
  • Investor setting up an holding to manage investments in different subsidiaries
  • Tech startup developing data analytics solutions
  • JV of people owning multiple IPs 
  • Media company with hundreds of contributors across the globe
  • Play-to-earn guild managing ownership of NFTs assets and multiple scholars 
  • Partnership of lawyers supporting individuals wanting to move abroad 
  • A traditional painter looking to fractionalise physical paints
  • Kitchen’s makers with a new payment system
  • Influencers looking at new solutions to connect with the fans
  • A pizzeria

Our clients have a diverse range of backgrounds and we are open to discussing our offerings with anyone. We welcome discussions with people who may have already set up a business or are just starting out.

 

What we don’t provide

Just so there are no misunderstandings, we will tell you what we don’t provide.

Setting up a business is only one step of running a business, but there are many other professional services that you may require. We can’t give an exhaustive list of services nor cover all of the nuances since the jurisdictions where our clients reside can have very different laws.

In short, these are the typical other services that you may require that we do not provide:

  • Legal advice
  • Tax advice
  • Accounting in US (we offer it for all other jurisdictions)
  • Banking

While we don’t provide these services, we can make introductions in some circumstances. For example, we can introduce you to lawyers but for tax advice, we suggest that you find a licensed tax advisor in your jurisdiction. 

Finally, with regards to banking, we can reach out to contacts within our network who may be able to help you. However, it isn’t possible to guarantee success.

 

Contact Us

We still receive many questions on our Discord server, which is the best way of reaching out to us. If you’d like to join, feel free to click here: Korporatio Discord.