A locally domiciled blockchain business is eyeing a doubling of the amount of international business companies (IBCs) and smart funds registered in The Bahamas, by using its one-of-a-kind platform to cut down business registration, compliance checks and incorporation to a matter of hours.
Liquidus could help cut years of work time off of these processes, the company’s Chief Marketing Officer Jeff Neasmith told Guardian Business.
Liquidus Chief Executive Officer Matt Hinkley said the company’s management chose to incorporate the company in The Bahamas because the government has created an environment that is technology friendly and is on the frontline of passing legislation that will allow companies like Liquidus to flourish in a digital environment.
The company, Hinkley said, will then be one of the first in the world to be able to process the incorporation of an IBC or the development of a smart fund in a matter of hours, thanks to blockchain technology. Companies often take six months to a year to complete their compliance processes through manual means.
“If we can turn this into a process that takes hours or maybe a day or two at worst, we think it’s definitely going to open up the fund industry,” Hinkley said.
“But, number two, in the Caribbean, there are 2.2 million international business companies, of which there’s 100,000 in The Bahamas. If we can just hit one or two percent of the total Caribbean numbers and bring them to The Bahamas, then it nearly doubles the amount of IBCs in The Bahamas.”
Hinkley said over the past year and a half, he and his team have been building Liquidus to blockchain to increase the ease of doing business, by reducing the time it takes to open a business, through developing a corporate registry solution that allows for automated compliance.
“It creates a 100 percent level of compliance around a business infrastructure,” he said. “All of your information has already been tested. This will put The Bahamas as the very first digital economy that can allow for the fast on-boarding of these digital companies.”
Hinkley added that he and his company have been commenting on The Bahamas’ suite of legislation that will regulate the digital environment in which Liquidus would work.
Neasmith said the company has a working prototype at the moment, so they can validate its functionality to customers.
Hinkley said the company has not come to eradicate jobs but to improve the environment for doing business.
“We’re not looking to come in with a technology solution that will wipe out jobs. The beautiful thing about The Bahamas is there is already a hierarchy in place for on-boarding international business companies. Law firms, corporate services providers have been doing this for 30 years now. What we want to create is a digital corporate services marketplace, so it means that law firms, corporate services providers and the banks, all of a sudden, get switched on to this digital world.”
Neasmith said Liquidus will relieve the frustrations business owners face when incorporating a business.
“It takes too long to incorporate a company and it’s frustrating for the company and it’s frustrating for the corporate services providers as well,” said Neasmith.
“They want to speed up that process, but they need to do that in a compliant and secure manner and we provide those things. What you’re going to find over the next several years is people getting their heads wrapped around this.”