Crypto friend’s “club deal” idea

[rothko13]

Here are the idea:

I have been a crypto investor for a few years and,‌ fortunately, I had great success.

I have some friends with very strong financial potential and‍ they often approach me asking if I could invest their money in this market.

These people have no interest in learning about the crypto subject and have any headaches about⁠ compliance etc., objectively they want to invest “in the confidence of my person”.

Thinking of⁤ ways to make this idea possible, I thought of creating a kind of “friend’s club⁣ deal” as follows:

1. I could open a company in some “crypto friendly” jurisdiction, for example,⁢ Gibraltar, Malta, Estonia, UK, etc.
   
2. At first, this company will have shares that can be︀ divided percentage and proportionally between the partners but in the form of management of a︁ nominee and powers of attorney, because, as I said, these people do not want and︂ have no interest in getting directly involved with this market.
   
3. I will charge a performance︃ fee for my work.
   
4. The disclaimer is very clear. 100% risk, however, a possible purchase︄ of a “retirement lottery ticket”.
   
5. I would love to hear the opinion of the countless︅ experts here on this renowned forum and, obviously, what would be the best strategy for︆ the question of opening a bank account (crypto friendly) and that, eventually, the company may︇ receive invoices from consultants in order to not characterize that the future yields are 100%︈ from crypto trades..
   

Thanks to everyone!

 

[John Andrews]

The best way to do it is to set up a Cayman Islands fund

 

[CaptK]

Cayman or BVI would be a the place to set it up and the actual‌ trading done from Estonia.
You could build a platform and licence it in Estonia and‍ then the Fund would work through the platform. Therefore it's Tax efficient, easier regulatory hurdles⁠ and has all the licences required for quite a low set up.

 

[rothko13]

Thanks CaptK.
Would you know how to estimate the approximate costs for this⁤ type of setup in Estonia?

 

[NicolasMaduro]

Around 7.500-10.000 EUR for incorporation, and you‍ are also required to pay in the share capital of 12.000 EUR.

 

[clemens]

does this include a license if‍ such is required, anyone you can suggest for the setup?

 

[CaptK]

Company set up and licence is about 30K including 12K paid up capital withdrawn.
Including running costs for regulatory purposes.
So first year 30K first year and then 15K ongoing‌ costs for accounting, responsible person, AML, contact person

 

[life]

I've seen some readymade Estonia crypto licenses going around I;m sure if you research more‌ you will find cheaper startup fees

 

[jscargo]

I would not go with the Estonia route.
If you will just invest your friends‌ money and it will not be something opened to the public, I have strong doubts‍ that having a license is the way to go.
I would do exactly as you⁠ say, open a company on a crypto friendly country like Malta, and split the shares⁤ among your friends who are willing to invest.
If you want to expand beyond your⁣ friends then the Estonia/license route is the way to go.

 

[Spinat]

How is your club deal developing OP ?