SE Asia Contract

[northernladyuk]

[LocalBloke]

I'll stop you there. There's no reason why a legitimate crypto-currency business cannot be setup. There are reasons why a regulated financial business cannot be, and a crypto-currency business that needs to be in the UK must have some financial interaction with the UK. So on the basis that this is either money-laundering, or a method to bypass the FCA then it sounds pretty criminal.

My guess is this is laundering either drug, or gambling money and they are (trying to) playing you.

Run away.

A large number of companies in the Block chain space are raising money via crypto-currency funding known as initial coin offerings (ICO's). A bunch of these magic internet monies are then sold on exchanges for FIAT. There have been reports of many accounts being closed by banks (without explanation) if you get paid into your bank from one of these exchanges. Ex . This however does not change the fact regardless of who operates the company.

I can only verify the legitimacy of the funds they have raised and their operations in Asia. While the company is legit , I am unable to understand the issues they are facing , hence lead to this post. Appreciate your input.

Cheers!

[Lance]

I've currently being offered a contract from an SE Asian company. It looks well established and has been trading for a few years. The company is trying to set up UK operations , but due to the field involved (crypto currencies) , they seem to be having some problems getting registered.

I'll stop you there. There's no reason why a legitimate crypto-currency business cannot be setup. There are reasons why a regulated financial business cannot be, and a crypto-currency business that needs to be in the UK must have some financial interaction with the UK. So on the basis that this is either money-laundering, or a method to bypass the FCA then it sounds pretty criminal.

My guess is this is laundering either drug, or gambling money and they are (trying to) playing you.

Run away.

[LocalBloke]

Thanks for the input guys! It certainly looks like a slippery slope to let my company be used as a front. So i am going to decline this without a doubt.

Not that I am desperately trying to get in bed with them ,I would like to understand how are such deals structured legally. With a one man band (as most of us) ; I do not see any issues arising; but as soon as you add the possibility of having multiple employees, what legal covers should any one entering into a partnership like above take.

Especially here, where the funds flowing in are certainly from an off shore company & the model at the moment is not in a position to generate sales (at least in the near future) and the focus is mainly software development.

[TheFaQQer]

If you sell the company, then you would pay capital gains tax on the sale but would be able to claim entrepreneur's relief on the sale as well which would reduce the amount of tax that you have to pay. AIUI, since this is an arms length transaction with genuine commercial reasons, it would be difficult for anyone to argue that this is a tax avoidance measure.

Personally, I would consider charging more than just the cash in the bank for the transaction since they need you more than you need them at the moment - maybe a 5% or 10% transaction fee? In terms of selling the company, all you would need is an agreed valuation for your shares in the company and an offer from the other company. Your directors recommend to the shareholders that they accept the offer, the shareholders accept the offer. Company pays the funds into an escrow account and on completion you receive the money, the shareholders sign the stock transfer form, the directors appoint new directors and then resign from the company.

It shouldn't be a difficult process, but take professional accounting and legal advice as well - but if you were thinking of closing down anyway this may be a way to get a better return than just closing down and taking the money from the company on closure.

[doconline]

Given that there are very few restrictions on starting a UK ltd co from anywhere in the world, I would be questioning why they want you to be the front man for it. According to Rapid Formations they can have anyone up and running in 3 hours. I would be worried about what is going on behind the scenes that you don't know about here.

[cojak]

To the community here, what are they ways I can get shafted? What would you consider a good deal if you were handed the extra reigns to manage a company. Is there an expert (or a company which deals in everything from legal to contracts) in the situation I am in i can speak to ?

Cheers!

On the basis that this company is trying to use you as a front to get around the law, potential massive fines and a possible jail sentence as a means of dissuading others from trying the same trick?

You need to worry about legislation, the FCA and HMRC as much as this company I think.

[LocalBloke]

Hi,

I've currently being offered a contract from an SE Asian company. It looks well established and has been trading for a few years. The company is trying to set up UK operations , but due to the field involved (crypto currencies) , they seem to be having some problems getting registered.

I currently have my own limited company which I use for contracting. They are proposing, I use the limited company to set up their operations and I get paid management fees in return. Or they could buy out my limited company and I get what is in the bank. This was a very brief conversation , so i told them i'd think about it; so there certainly seems room for suggesting a better break up.

The situation seems to have more complications as I was planning to shut down my limited company and take the payout. Besides this entire operation is out of my experience. I am dropping the same to my accountant, to get a range of options possible.

To the community here, what are they ways I can get shafted? What would you consider a good deal if you were handed the extra reigns to manage a company. Is there an expert (or a company which deals in everything from legal to contracts) in the situation I am in i can speak to ?

Cheers!