We learned from the Swiss law firm Goldblum and Partners, serving the organizers of ICO, how best to cooperate with European investors and organize a token in Switzerland.
Why do many people think about holding an ICO in Switzerland
In part this is a tribute to the fashion – Ethereum Foundation, Tezos, Monetas, Lykke made Switzerland popular in the crypto community, and Zug is an excellent place to register the company because of the convenience of management and taxation.
The city administration accepts bitcoins as tax payments for up to 200 francs. Registration of the company can also be carried out with the introduction of BTC in the authorized capital; the tax administration considers crypto-currencies as property and appropriately applies taxation.
Supervision, regulating activities, the requirement of having a local director who is collectively responsible for the work of the firm or fund, make Switzerland reliable for investors, understandable to the organizers of the ICO and discourage scammers.
How to conduct an ICO in Switzerland
At the initial stage, we recommend that the organizers of the ICO look for partners who can invest a large amount of money. In addition, you need to conduct Due Diligence ideas, create a roadmap for the project that will become part of White Paper, and develop terms for raising funds in the form of Terms and Conditions, and also check the information in the promotional materials and in the presentation for compliance.
There is a high probability of finding an investor in the process of the so-called Roadshow, which involves sending out proposals for a meeting, holding presentations, answering investors’ questions and, as a result, receiving funds. This is an important point in the work – answer the most tricky questions, face to face, where no question of anonymity is coming.
By agreement with the organizers, at this stage we can provide a lawyer for publication as an adviser to the project, and also answer legal questions from ICO clients.
After major investors are found, we recommend starting the registration of the company: an analogue of LLC with a statutory fund of 20,000 francs, CJSC – 100,000 francs. In the second case, all shareholders are anonymous. It is also possible to buy a ready-made company. In parallel, an official request is made for the need for licensing to the regulator, opening accounts in banks and organizing the reception of funds from small investors.
All incomes received at these stages are subject to taxation at the end of the reporting period, and there are no differences from the work of tax authorities in other countries.
Is it necessary to create a fund for ICO in Switzerland ?
As a rule, funds are cumulative organizations that use contributions or donations for some programs that are not related to commercial activities and do not benefit from this activity.
Once again: the fund does not imply any commercial activity, receiving funds from investors and paying them back with a reward.
The story with TEZOS, the organizers of which have not received any explanations from lawyers in Switzerland and accepted funds from investors in the form of donations, intentionally or not – is to be clarified in several trials, clearly demonstrating the need to involve a lawyer at all stages for both sides. Refer to professionals who can be responsible for their recommendations or actions.
Author: Richard Abermann