MAXIMIZE THE POTENTIAL OF YOUR EXISTING LEGAL ENTITIES
Corporate Structure Diagnosis
Are you making the best out of your existing corporate structure? Are you fully taking advantage of your current legal entities and licenses? Are you leaving possibilities on the table? Overspending or underutilizing your current assets?
In the form of a Legal Memorandum, our team will produce a diagnosis of your corporate structure. By performing an analysis of all your immaterial assets (companies, licenses, IP, IT, etc), our lawyers can suggest improvements for efficiency, cost-saving, making the best out of what you are legally allowed to do in a given jurisdiction, and improving your internal organization.
As you would audit your internal IT systems to ensure their optimal functioning, a corporate structure diagnosis gives you a comprehensive overview of your legal structure and the keys to improving its organization.
Assessment of your current entities and authorizations
Our legal team will first conduct an in-depth analysis of your existing set of companies and the applicable laws in their registration jurisdictions. Rengang will then map out a summary of your activity, related to your target markets, your services and products, and your objectives.
From there on, our lawyers will point out:
What your structure is already allowed to do and offer to clients;
What are the pros and cons of utilizing a given structure to offer the services, according to our standardized legal risk assessment;
What are the possible blind spots: unused possibilities or the opposite, lacking points to offer the services you intend to propose and that require additional legal work (authorization, legal work, licenses).
Optimizing your structure to suit your ambitions
As our lawyers perform a complete study of your organization’s legal entities, you will be provided with suggestions on legal restructuring and adjustments. The goal may be to reorganize the provision of services or sales of products to the most suitable entities in your legal set. It could also be to define an ownership organization that does make sense in terms of workflow or financial structure. Eventually, for regulated activities, our specialists will give an opinion on which of your entities fits best for their provision, as well as the possible compliance requirements that it implies.
Then based on the input from your team and from the initial assessment, our legal team can advise on the services that require additional legal entities and/or licenses. Making use of our experience, you will be provided with various alternatives, including a comprehensive depiction of what it entails in terms of duration, requirements, and budget.
Confirming and defining the legality of your business model
When starting a novel activity in a groundbreaking industry such as virtual assets, FinTech, or AI, lawmakers usually don’t have yet the time and experience to formulate concrete and definitive regulations that apply to all. A certain degree of understanding of the existing law is required to ensure the legality of an innovative service.
Assessing your flow and tech model, Rengang’s lawyers verify in minute details.
To give an example: as a virtual asset service provider, what is your level of (de)centralization and what does it entail? Our legal team would analyze your contracts with partners (financial service providers, payment gateways) to assess your and your partners’ degree of involvement and control over the provision of services by applying the decentralization test. The resulting provisions would then clear the path to comply with all the regulatory aspects.
Delivering legal advice for your corporate structure
Finally, we will prepare FinTech legal advice to provide you with comprehensive information and possibilities for the present and future.
Would it make sense to relocate your activities? To add a company as a holding? As a licensing vessel or to avoid the need for licensing? For payment facilitation?
We will paint a picture of the possibilities that can be unlocked with even the slightest addition. Our lawyers will also explain the relationships between the entities and their respectful authorizations, so the whole structure makes sense to you and allows you to operate more efficiently across international borders.
Projects like yours secured a Legal Services with Rengangyongsheng
discover their experience of working with us
A perfect fit for our business
I highly recommend Legal to any entrepreneur or business seeking top-notch services for their company formation.
Tom
Best for Crypto Licenses
Best company for Crypto Licenses! Kudos to the team for making the incorporation of our company really smooth
Charlotte
Fast and Reliable
Quick set-up and straightforward process. It was a smooth process, we are happy to have chosen Rengang as our Partner for incorporations, globally.
Daniel
Highly recommended!
They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!
James
Excels at adapting to challenges
Rengang excels at adapting to challenges and demonstrates a perfect understanding of our business needs.
Alexander
A fruitful cooperation
As a result of the fruitful cooperation with Rengang, Yellow Card obtained a VASP registration, fast and without any legal complications.
Jack
HAVE A FINTECH LAWYER LOOK OVER YOUR SHOULDER
Legal Opinion
A Legal Opinion is a document issued by a certified lawyer, after carefully studying your project and the pertaining laws in force in the applicable jurisdictions and supranational institutions.
There are many situations and many cases where a Legal Opinion comes in handy. The need for one is common among FinTech projects but remains situational, though some common patterns have emerged in the past years, such as the recommendation to issue a Legal Opinion on a newly issued token or on the final version of a whitepaper or litepaper. A Legal Opinion ensures that the project’s token or operations conform with the legislation of a given country, or that a lawyer has stated after due analysis on the legal classification of what is oftentimes poorly understood by the legal bodies worldwide.
Below are detailed examples of situations and cases where a Legal Opinion is advisable.
Legal Opinion for the rightful classification of your token or cryptocurrency
One of the most dangerous traps that a crypto project can fall into, is to have their token classified as a security token by their domestic regulator. As in virtually the whole world, security tokens are analogous to securities, this technically implies that your company will have issued a security without respecting the procedure, rights, and requirements to do so. The sanctions for illegal release and sale of a security are often important and can threaten not just your project, but you and your team as liable individuals.
A Legal Opinion clears the doubt and states whether your token responds to the criteria of a payment token, a utility token, or a security token, as per the appreciation of an experienced lawyer. If the lawyer finds out that your token most likely responds the the legal classification of a security, a notice will be provided so you can react and either adapt the token for reclassification or prepare the necessary legal work to comply with applicable securities law.
The issued Legal Opinion is then protecting your project and your team from the consequences of being accused of illegally issuing security, providing you the necessary peace of mind to focus on what matters to you: project development and growing your community of buyers and holders.
Legal Opinion to assess the need to comply with gambling regulations for your game project
Another strongly regulated area of business is gambling. That is to say: games involving a factor of randomness and the stake of money, or representation of values that can be exchanged for money (such as poker chips for example).
Most of the regulators are extremely serious and picky on details. The "gacha" model (also known as "lootboxes") in massively multiplayer online games has led major studios to fold completely from certain countries. Gacha is a Japanese word designating toy vending machines, where the client would pay a fixed amount, but receive a random item of variable value. This asymmetry between the price paid and the value received is considered as a gamble by many governmental institutions. This has led major video games such as SEGA's Phantasy Star Online 2 or Genshin Impact to either withdraw their operation from certain countries or modify their in-game offer to adapt.
A Legal Opinion could have helped. It would have described the exact mechanisms that require compliance with gambling regulations and given a roadmap to either reclassify without damaging the business model of the game or successfully receive a gambling license if that choice was expected to be more profitable.
What is true for major video game publishers is therefore true for any project offering games implying the usage of money and an element of randomness, directly or not. For example, if your game wants to pay off its best winners only, a Legal Opinion should prove that the game is fair and results aren't influenced by elements of randomness.
Legal Opinion to ensure that your innovation is aligned with regulations
A Legal Opinion can also shed light on an innovative business model. Though this is often applied to financial services and FinTechs, in general, the usage of novel technologies and new ideas can lead to confusion when it comes to classification, regulation, and ensuring compliance. It is then preferable to have a lawyer reassure governmental and institutional representatives over what is it that you are doing, and that they may not understand properly.
The sphere of financial technologies is evolving quickly, as new disrupting technologies are enriching the toolkit of entrepreneurs almost every year. Lately, the popularization of language learning models has opened the door to numerous opportunities. Companies are eager to create new services and develop new ideas, that may not be clearly explained in existing laws and regulations. However, that would be wrong to think that regulators will let novel projects fly unregulated on the basis that no dedicated legislation has been enforced for their specific activity.
A Legal Opinion can link the dots between the existing regulations surrounding your innovative business model. It will provide you with more certainty on its legality and on the potential need for approbation, in case your idea would dip into existing laws.
Additionally, in the same fashion, a Legal Opinion can state the compliance requirements such as:
AML-CFT;
KYC and due diligence;
Risk management and reporting procedures.
Get In Touch
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Contact Details
Rengangyongsheng (Hong Kong) Limited
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Email
tsy@cnjrp.com
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Phone
852-92984213
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Address
18/F, Easley Commercial Building, 253-261 Hennessy Road, Wan Chai, Hong Kong
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Address
86/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong
