In this story, we want to show how anybody can use USDQ to found an LLC in Austria, sidestepping bureaucracy traps and using stablecoins to make life easier.
How everybody registers LLCs in Austria
A lot of cryptocurrency projects have already decided to register their GmbHs (an equivalent of an LLC) in Austria. The country’s authorities have been very welcoming to everything crypto, while laws and regulations are easy to decipher and follow. A country is one of the recognized crypto havens.
In this vein, registering an LLC is a pretty easy thing to do. There’s just a number of steps that you go through, without much heartache or brain ache. At Step 1, the founder needs to contribute the amount of the founding capital into the bank account with this amount becoming blocked there. At step 2, the bank would produce the so-called contribution confirmation. At Step 3, the notary will be able to use this document in order to officiate the act of registration. At Step 4, the notary furnishes the set of the required documents (statutes, signed by the parties, and the foundation deed) to the corporate register in the respective canton. At step 5, the government clerks would check the received documents and register the LLC. At Step 6, the bank unlocks the blocked amount and furnishes it to the business. The biggest amount of red-tape is at the stages, when you have to counteract with the bank, jumping through all those hoops it places. Generally, the whole process takes around 1 week.
How I failed to do this standard process
When I and my partners decided to set up the LLC, I, naturally, contacted the bank, I’ve been using for years. It’s a good establishment with high quality of service. In a couple of days, they opened the account and I was able to pay the amount of the founding capital. But then, while I was expecting a contribution confirmation from them, they, instead, furnished an extensive list of questions, designed to learn everything and anything about my crypto-related business. The asked, among other things, whether I wanted to do an ICO, issue coins, invest in crypto, set up and operate a crypto platform, or receive payments in crypto. I was not planning to do either of those things, except for receiving payments in crypto. So, I filled the questionnaire accordingly and I only ticked as “yes” the question about the payments. The bank came back with the response that they didn’t want anything to do with crypto. They refused to move further and immediately returned the founding capital.
How I tried to find a solution to the problem
So, now I was starting to understand that all other banks would behave in a similar way, so I decided to take out the “legacy finance” out of this equation completely. The point is that in addition to cash you can also contribute other valuables as the founding capital, provided that those assets are equal to the stipulated amount of the founding capital. If you do this, the auditor will need to verify the value of those assets.
That’s why I decided to use BITCOIN. I moved Bitcoin into the wallet and specified the key to the wallet in the documents. Other people told
USDQ as an appealing alternative
Business is all about learning from your mistakes and never giving up on your endeavor. The thing that I learned from this experience is that stablecoins can help in cases like this. Instead of giving up on my dream to set up a company that would deal with crypto-related businesses, I decided to roll out the registration process again, for the third time. And this time I used USDQ. Now, I was sure that USDQ will not fluctuate in price because it’s pegged to 1 USD, and I didn’t have to contribute an additional amount, like I had to with Bitcoin. And everything worked perfectly. The auditor recognized the value, the notary verified all the documents, and the government clerks, well, they had no other option but register my company. That’s how stablecoins can help real businesses in solving everyday problems they face.
As you can see, banks are becoming obsolete by not adopting new approaches and banning innovative solutions. Businesses that turn their eye on crypto and blockchain will get a competitive advantage and will make life easier for everybody working there.
If you are planning to set up a business in a jurisdiction like Austria, using the in-kind contribution in the form of USDQ stablecoin is an option worth considering.