Use crypto as share capital when forming a company

[hlepic211]

Has anyone had experience forming a company with crypto as share capital (using crypto as a non-monetary contribution)? I know this can be done in some jurisdictions, but specifically looking at Gibraltar and Liechtenstein. For Gibraltar I can't find any info, for Liechtenstein it looks like it's possible, but it needs an audit where the auditor will confirm the value which is not a problem.

My goal is to acquire real estate under the company and rent it out. And this looks like a good way to legalise a portion of my crypto.

 

[CyprusLawyer101]

Hello, We can do it for Cyprus companies. If this is within your options I would be happy to discuss.

 

[CyprusBusiness]

Yes it will work with a Cyprus company. Our firm is already serving a diverse spectrum of crypto clients who embarked to setup the same structure.

The process is initially to setup a Cyprus company, create crypto wallets for the company, and proceed with the injection of assets.

The injection can take the form of debt or equity injection. Under Companies Law any in kind consideration for issuing shares needs to be accompanied by a valuation from an external auditor.

The valuation needs to be in line with International Financial Reporting Standards. This methodology will constitute the basis of accounting and would be an essential task once the asset contract relating to the Crypto asset injection are drafted, so that the correct value is determined and be in line with Company Law.

Please let me know if I can PM you to discuss this further

 

[NicolasMaduro]

Can be done if you can get an authorized auditor to confirm the value equals minimum requirements

 

[Don]

NicolasMaduro said:
Can be done if you can get an authorized auditor to confirm the value equals minimum requirements
Click to expand...

Im familiar with both Cyprus and Estonia and I believe its better to use Estonia for this purpose, as you can inject the capital without auditors opinion and later reduce the share capital tax free if you structure it right.
Theoretically you can even avoid opening a bank account.
You also dont have to pay any corporate income tax before you distribute dividends so it gives you more flexibility for tax planning for pure crypto holding.

 

[hlepic211]

Don said:
Im familiar with both Cyprus and Estonia and I believe its better to use Estonia for this purpose, as you can inject the capital without auditors opinion and later reduce the share capital tax free if you structure it right.
Theoretically you can even avoid opening a bank account.
You also dont have to pay any corporate income tax before you distribute dividends so it gives you more flexibility for tax planning for pure crypto holding.
Click to expand...

Estonia is a great option yes, but not in my case. If someone needs to avoid audit I believe it's done this way:
1) Create a company
2) Get a verified account on Kraken + you need crypto-friendly bank as well
3) Deposit 1251 EUR to the company bank account (from the 2500 min share capital)
4) Board members valuate the crypto assets you want to contribute as share capital, then you make the non monetary contribution of 1249 EUR + share premium where 1 eur of share capital = X amount of the EUR equivalent of the crypto you want to use as a non-monetary contribution

I'm thinking Gib or Liechtenstein because I have banking options ready, Gib is better location-wise for me + Estonia is a headache when you try to move seven figures.

NicolasMaduro said:
Can be done if you can get an authorized auditor to confirm the value equals minimum requirements
Click to expand...

In Gibraltar?

 

[JohnLocke]

Switzerland was able to do the same earlier this year, I believe they put it on hold by now or even stopped the program.

But not sure about the situation right now.

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[Luckieduckie]

CyprusBusiness said:
Yes it will work with a Cyprus company. Our firm is already serving a diverse spectrum of crypto clients who embarked to setup the same structure.

The process is initially to setup a Cyprus company, create crypto wallets for the company, and proceed with the injection of assets.

The injection can take the form of debt or equity injection. Under Companies Law any in kind consideration for issuing shares needs to be accompanied by a valuation from an external auditor.

The valuation needs to be in line with International Financial Reporting Standards. This methodology will constitute the basis of accounting and would be an essential task once the asset contract relating to the Crypto asset injection are drafted, so that the correct value is determined and be in line with Company Law.

Please let me know if I can PM you to discuss this further
Click to expand...

WE have clients looking for cyprus structures like this .. please get in touch

 

[bamboozlethemall]

hlepic211 said:
Has anyone had experience forming a company with crypto as share capital (using crypto as a non-monetary contribution)? I know this can be done in some jurisdictions, but specifically looking at Gibraltar and Liechtenstein. For Gibraltar I can't find any info, for Liechtenstein it looks like it's possible, but it needs an audit where the auditor will confirm the value which is not a problem.

My goal is to acquire real estate under the company and rent it out. And this looks like a good way to legalise a portion of my crypto.
Click to expand...

Doable in Cyprus easy peasy.DM for details.