Incorponation - Enhancement of a country finder 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] Please specify how many months you expect your project to last (from 2-12 months)

6

[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 needs. Currently at 10, we want to add additional 7 counties, taxation parameters and widen trusted professionals network.

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

No

[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.”

No dependencies.

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

Yes

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

The platform is (and will stay) free to use. The findings will be incorporated into the platform and will be accessible in the form of country suggestions by the platform accompanied by relevant crypto regulatory and tax related information about the country.

[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 finder 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 designed for new Cardano projects who need to incorporate and want to know where it is the most favorable for them. Incorporation is perfect also for existing Cardano projects that would like to relocate to a more crypto-friendly country and/or get out of the regulatory gray zone.

What are we proposing:

The MVP proved itself valuable. We’ve received feedback from the community to incorporate further information. Thus we are proposing to:

1. add at least 7 more countries to choose from,
2. add tax and accounting overview of the suggested country,
3. add trusted contacts in the suggested countries.

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

1. The platform saves money and time for Cardano businesses -> easier to start a project (and cheaper) -> more projects -> more revenue for the Cardano ecosystem.
2. 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.
3. The platform elevates overall regulatory compliance of the whole Cardano ecosystem -> more trust in projects and the whole ecosystem -> increase of the price of ADA and thus the net worth of the whole ecosystem.

The key metrics will be:

1. The number of users utilizing the platform to get advice on country choice.
2. The number of users seeking follow-up advisory in relation to country 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?

• Review 2 countries, prepare a summary (legal & tax), and draft implementation of the outcomes into incorponation.io
• Establish cooperation with professional advisors in target countries

• Milestone output: Update our database and website algorithm
• Acceptance criteria: Updated website with two additional countries.

• Review 2 countries, prepare a summary (legal & tax), and draft implementation of the outcomes into incorponation.io
• Establish cooperation with professional advisors in target countries

• Milestone output: Update our database and website algorithm
• Acceptance criteria: Updated website with two additional countries

• Review 2 countries, prepare a summary (legal & tax), and draft implementation of the outcomes into incorponation.io
• Establish cooperation with professional advisors in target countries

• Milestone output: Update our database and website algorithm
• Acceptance criteria: Updated website with two additional countries

• Review 1 country, prepare a summary (legal & tax), and draft implementation of the outcomes into incorponation.io
• Establish cooperation with professional advisors in a target country

• Milestone output: Update our database and website algorithm
• Acceptance criteria: Updated website with an additional country

• Finalize the outcomes of country research and reflect the changes on incorponation.io 
• Market this free tool to Cardano community
• Confirm cooperation with the advisors in all target countries

• Milestone output:
• Update our database and website algorithm to include the new findings,
• Marketing activities
• Confirmed cooperations
• Acceptance criteria:
• Updated website altogether with 7 new countries
• Screenshots of marketing initiatives
• Confirmed cooperation with local professionals

[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 countries. 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: ₳ 37,142 ($ 13,000)
• 7 work-days of legal research
• 1 work-days of research and communication with target country professionals
• 1 work-days development costs
• 1 work-day of project and product management

• Milestone 2: ₳ 37,142 ($ 13,000)
• 7 work-days of legal research
• 1 work-days of research and communication with target country professionals
• 1 work-days development costs
• 1 work-day of project and product management

• Milestone 3: ₳ 37,142 ($ 13,000)
• 7 work-days of legal research
• 1 work-days of research and communication with target country professionals
• 1 work-days development costs
• 1 work-day of project and product management

• Milestone 4: ₳ 18,571 ($ 7,500)
• 3.5 work-days of legal research
• 0.5 work-days of research and communication with target country professionals
• 0.5 work-days development costs
• 0.5 work-day of project and product management

• Final Milestone: ₳ 49,774 ($ 17,420)
• 4 work-days of legal work
• 2 work-days of administrative work and residual communication
• 2 work-days of IT development costs
• 1 work-day of project and product management
• 10% of the project budget - marketing boost (ads, publication of promo article)

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

The project is able to save the entire Cardano ecosystem a significant sum on legal costs, by providing a free tool to find a best country for incorporation of a new Cardano project or relocating an existing one. The estimated costs for such an initial corporate, regulatory and tax research, is approx $5-8k; so at the point when the first 10 Cardano projects will use it for free, the total savings for the Cardano ecosystem will prevail the costs of building the Incorponation tool.

On top of that, the added value of the Incorporation tool is bringing more regulatory clarity to the whole Cardano ecosystem by allowing Cardano projects to operate outside of the gray zone as Incorponation provides Cardano projects with a free tool to understand which country can they incorporate in to have their Cardano project being compliant with regulation, corporate and tax laws. 

The whole project is budgeted for ₳ 179,771 which currently represents $ 62,920. This is calculated at a total of 44 work-days at a rate of $1,300 per work-day + marketing boost, which is a highly competitive price for qualified legal work.

[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