Incorponation - Automated incorporation tool for Cardano projects

[GENERAL] Name and surname of main applicant

Andrej Solar on behalf of Sparring

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co proposers and Additional applicants

Jitka Vrtelova

Tomas Richter Urban

[GENERAL] Requested funds in ada

200000

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

10

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We run a country finder F2P platform based on clients’ business cases. We will automate the company establishment process to run fully online. Upload docs, eSign, wait a few days, ready to moon.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

We will do the legal work.

We will entrust the software development to the entity that initially coded the website and with whom we had a great experience.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

The crypto friendly country finder platform is (and will stay) free to use. The company establishment automation process will be incorporated into the platform and will be accessible by anyone in the Cardano community for an incorporation fee.

[METADATA] SDG rating

This proposal is not related to SDGs.

[SOLUTION] Please describe your proposed solution.

What have we built:

Do you want to incorporate your new project and ensure that you are compliant with law? Lawyers are expensive. Prepare to spend a lot of money for initial regulatory research often leading to the answer: it’s best for you to move to another country. 

We have built Incorponation to skip the first step, giving you a head start on country choice and saving you money that may flow into your business.

Incorponation has been featured by Forbes CZ as a unique automated legal tool:

https://forbes.cz/gibraltar-nebo-praha-ceske-pravnicky-poradi-kde-zalozit-krypto-startup/ 

Who is it for:

Incorponation is great for everyone across the world starting Cardano-related business, or getting Cardano business out of the gray zone.

What are we proposing:

The MVP proved itself valuable. We will make the setting up of a company as seamless as possible. We will update our current platform; once the users choose their preferred country for incorporation (free service), they just need to:

1. Fill out the questionnaire needed to incorporate the business (e.g. shareholders, shares %, directors, etc.) 
2. Upload documents required for incorporation (e.g. ID, proof of address, etc.)
3. Pay the fees and incorporation costs (crypto payments will be enabled)
4. eSign founding documents.

In a few days, the user will receive founding documentation and an excerpt from respective companies’ house and will be able to start to operate their business. Such a platform would save the founders a lot of money, time, and stress by not only helping them choose the best country where to incorporate or re-settle, but also by automatically incorporating their business in the country of their choice.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

1. The platform provides free and immediate regulatory guidance and information to the user -> better compliance -> increased project longevity -> more projects -> more revenue for the Cardano ecosystem.
2. The platform saves money and time for Cardano businesses -> easier to start a project (and cheaper) -> more projects -> more revenue for the Cardano ecosystem.
3. We will add a seamless, company incorporation tool in a number of crypto-friendly countries -> better regulatory compliance of the whole Cardano ecosystem -> more trust in projects and the whole ecosystem -> increase the price of ADA and thus the net worth of the whole ecosystem.

The key metrics will be the number of users utilizing the platform to establish a company in a country of choice.

The insights and results will be disseminated through Catalyst’s reporting channels and other Cardano social media channels.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Sparring is an international law firm operating in the EU, US and UK, with a dedicated crypto focused practice. We have a long history of providing legal support to a number of projects active on Cardano, such as Vacuumlabs, NuFi, etc. We are servicing crypto clients globally. Our client portfolio includes crypto hedge fund, DEX, DeFi financial center, wealth management platform, digital marketplace and other crypto projects, several of which operate on Cardano. See more at https://sparring.io/crypto/

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

• Research of requirements for incorporating a company in 3 countries of choice.
• Designing the structure of the platform, including the steps necessary to incorporate a business in a particular country.
• Establish relationships with local entities able to file motions with the local companies house in respective countries.
• Update our database and website to include the new findings and start to prepare automated company-establishing work-flow.

• Research of requirements for incorporating a company in 3 countries of choice,
• Establish relationships with local entities able to file motions with the local companies house in respective countries.
• Start to work on software development of document upload system, login, access restrictions.

• Research of requirements for incorporating a company in 2 countries of choice,
• Establish relationships with local entities able to file motions with the local companies house in respective countries.
• Continue the development of document upload system, login, access restrictions, and integration of payment gateway, setting up automated emails and invoicing.

• Research of requirements for incorporating a company in 2 countries of choice,
• Establish relationships with local entities able to file motions with the local companies house in respective countries.
• Integration of 3rd party eSigning services.

• Fully implement the tool to establish a company in 10 jurisdictions
• The tool shall enable the user to
• Fill out questionnaire with basic information about the founder and a company to be established
• Securely upload documents necessary for setting up a company under local law
• eSign founding documents via 3rd party signature service
• After payment of fees for setting up a company, the platform will automatically send a request to establish a company via a local entity able to file motions with the local companies house
• Update the terms and conditions and privacy policy for the platform

[RESOURCES] Who is in the project team and what are their roles?

Tomas Richter Urban

Head of Crypto desk of Sparring

Coming from the world of banking, finance and capital markets law, Tomas has become an expert in crypto and fintech. He gained some first hand experience serving as a chief legal officer in a prominent crypto hedge fund. Tomas leads Sparring’s Crypto and Web3 practice.

Jitka Vrtelova

Senior Legal Mind

Jitka enjoys tackling issues across multiple jurisdictions. She gained significant experience in corporate and commercial law. She is also a crypto and fintech enthusiast, who is especially happy to dive into complex legal issues faced by fintech and crypto-related projects.

Andrej Solar

Senior Crypto Leal Mind

Andrej is a crypto enthusiast, and blockchain seasoned attorney. He regularly advises high-profile crypto & fintech companies. He serves as a CLO of a crypto wealth management platform on Cardano.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

• Milestone 1: ₳ 42,714 ($ 14,950)
• 6 work-days of legal research
• 1.5 work-days overhead - project and product management
• 4 work-days of IT development (questionnaire - UX/UI, frontend, handling of the data on backend, setting up a database, fixing of bugs; updates to the website to reflect the additional services)

• Milestone 2: ₳ 50,143 ($ 17,550)
• 6 work-days of legal research
• 1.5 work-days overhead - project and product management
• 6 work-days of IT development (platform for the uploading of information and documents - login and access restrictions, UX/UI of the platform for the upload, fixing of bugs, testing, validations etc.)

• Milestone 3: ₳ 40,857 ($ 14,300)
• 4 work-days of legal research
• 1 work-day overhead - project and product management
• 6 work-days of IT development (continued development of the platform from Milestone 2, integrating payment gateway, automating emailing and invoicing, fixing of bugs)

• Milestone 4: ₳ 33,429 ($ 11,700)
• 4 work-days of legal research
• 1 work-day overhead - project and product management
• 4 work-days of IT development (integration with a third-party eSigning service; bug fixes)

• Final Milestone: ₳ 59,400 ($ 20,790)
• 2 work-days of legal work - T&Cs and privacy policy
• 2 work-days of legal research - confirmation of eSigning
• 1 work-day overhead - project and product management
• 3 work-days of IT development (final changes and bug fixes)
• ₳ 10,000 - confirmation of our findings on establishing a company by a local legal advisor in uncertain jurisdictions 
• 10% of the project budget - marketing boost (ads, publication of promo article)

For full transparency, we are submitting the breakdown totaling above ₳ 200,000 but restricted by the cap.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

We are a well established law firm servicing crypto clients across the world, and we therefore know that researching so many jurisdictions would cost a lot of money. Incorporation costs can also skyrocket due to the lack of comprehension of the incorporation process, language barriers etc.

Cardano businesses will therefore benefit mainly in two ways:

(i) They will be able to sift through eligible countries quickly and efficiently, based on their specific business needs, and

(ii) they will be able to incorporate their business swiftly, without any headaches and at a fraction of the cost, guided by an experienced partner. Once developed, the platform is available for anyone to use, thus exponentially reducing the costs for anyone who decides to use it.

[IMPORTANT NOTE] The Applicant agrees to Fund Rules and also that data in the submission form and other data provided by the project team during the course of the project will be publicly available.

I Accept