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Blockchain Company Formation
What was a few years ago a fringe technology has over the past decade swiftly become one of the hottest sectors in the Information Technology space. Blockchain technology is now a main component of several important parts of the global economy, and its adoption is spreading quickly into more and more areas,
In tune with this explosion, entrepreneurs worldwide are committing resources and time to establish a foothold by opening a blockchain company.
A blockchain briefing
A blockchain is built using Distributed Ledger Technology (DLT), a decentralised database that multiple parties manage. The data is recorded in individual blocks, secured with an immutable cryptographic signature known as a hash.
Every party in a blockchain has a copy of a digital ledger of transactions distributed and shared across the entire network of parties on the blockchain. Individual blocks in the chain contain several transactions secured by the hash these parties share. Every time a new transaction occurs, the record of that transaction is added to the end of the blockchain, affecting every participant’s ledger.
It is a method for recording information that makes it impossible to change anything without alerting all the parties in the chain. This makes it extremely difficult to hack the data and cheat the system. If any block in one chain is changed, it is immediately apparent to all parties that it has been tampered with. To corrupt a blockchain system, it is necessary to simultaneously change every block in the chain in all of its distributed copies.
In conventional database technologies, there is a central point of storage and authority, and parties who have data stored in the database are totally dependent on the integrity and security of that authority. Blockchain is different because the chain is stored locally for all parties, and no single party is in charge. The chain is owned equally by the people who use it.
In a blockchain database, the most prevalent forms of hacking, theft and ransomware attacks are prevented. Just as importantly, there is no single point of failure in case a database crashes or the network paths are blocked, such as in DDoS attacks. The blockchain will continue to function as long as a single node is connected.
How is blockchain technology being used?
After its initial appearance in the creation of digital currency, starting with Bitcoin in 2008, blockchain technology has spread widely, encompassing many additional areas such as:
- Banking and finance
- Supply-chain management
- Manufacturing Resource Planning
- Pharmaceutical distribution
- Government records management
- Digital documentation
- Digital asset control (NFT).
Blockchain technology can add value to almost every sector of the economy. It brings many benefits, such as improved data security, increased productivity, reductions in IT costs thanks to faster and cheaper data movement, and many more.
What are the opportunities brought by blockchain? Business opportunities for participants in the blockchain revolution exist in almost every area of the economy. Here at GBO, we have been concentrating on some of the most exciting sectors, where startups can gain a solid foothold with a modest investment.
GBO can provide you with a plan and guidance for establishing your own enterprise in sectors like:
- Cryptocurrency exchanges
- Cryptocurrency administrators
- Cryptocurrency miners
- Application developers
- Electronic Money Institutions
- Technology providers and technology companies
- Smart contract providers
- Marketing companies and affiliate companies within these sectors.
A step-by-step guide to incorporating your own blockchain enterprise
- Choose your geographic base – There are many advantages to operating from a company based inside the EU. With such a structure, you are free to open your banking account with any financial institution inside the Union, move funds freely between sister/parent companies, along with many taxation and reporting benefits.
- Choose the target sector – Blockchain technology is applicable in a wide range of activities. It’s advisable first to choose just one and concentrate your customer development, product marketing and other activities there. Expansion into other sectors will flow naturally once you have established your company’s competence in this new technology.
- Register a crypto company – Although some startup businesses do not legally require a registered company, it is always an excellent feature to have since it limits your personal liability in the event of failure. It is generally easier to obtain funding and licensing when a formal corporate entity owns the business.
- Obtain the necessary funding – Projections of expenses and revenue will give a good idea of how much capital the business needs before generating a positive cash flow. If you do not already have the funds available, you should arrange loans or investments from third parties to ensure that all expenditure is covered.
- Obtain necessary crypto licenses – Some of the potential activities (mainly in the areas like financial and health services) require government licenses. These will be issued when you can present suitable documentation, such as company ownership, banking accounts, citizenship of the ultimate beneficiaries, qualifications and many more details. We can assist you to obtain crypto license from Lithuania and Estonia.
GBO has expert teams that have performed company registrations and licensing for a wide range of blockchain enterprises. Talk to us for a complete guide to the required steps.
Guide to the blockchain company formation costs and services offered by GBO
Blockchain company formation costs include expenses such as government registration and licensing charges, fees for third-party services like legal consultations, bank account fees and blockchain technology software acquisition. The individual charges and fees depend on the jurisdiction in which you are going to operate and the nature of the activity. GBO can prepare a full budget of these expected costs once we have had the chance to consult with you.
As well, GBO charges specified fees for its own services, which are detailed below.
Detailed procedures and costs of the services provided by GBO
GBO will assign a specialised consultant to take you through each step of the process. They will organise the collection of all required information and preparation of all documents to be submitted for company registration or licensing. These may include full details of the ultimate beneficial owners, shareholders and senior executives.
The documents will be translated where necessary, notarised and may have to be apostilled if coming from an external jurisdiction. There are fixed fees for these external services.
You must designate this consultant to hold a Power of Attorney allowing the opening of new bank accounts and to act on your behalf in the process of company registration, licence application and account opening.
Once the documents are received and validated, GBO will open a regular savings bank account for the newly-founded company. A minimum share capital as determined by GBO must be transferred into this account, which is held in trust until all processes are complete. In general, this account can later be used for any business purposes.
GBO’s Blockchain company formation prices
|Preparing all the company documents required for company registration (either in local language alone, or in both English and local language).||€|
|Notarising the documents||€|
|Establishing the virtual business address for the 1st year||€|
|Opening a regular savings account in the corporate name with a European bank|
|Assistance in opening corporate banking accounts with a crypto-friendly bank/EMI||€|
Get in touch with a GBO professional today.
Contact a GBO professional to begin your cryptocurrency business today