Creating a company today is too hard and expensive. Even in the most business-friendly jurisdictions like the US, the process is long, talking to lawyers is needed, and the cost is not negligible. In less favorable jurisdictions like Argentina, the process can take up to 6 months and lots of bureaucracy.
Part of the problem is the information asymmetry between company founders and lawyers, accountants, notaries, and government officials. Few founders have legal expertise when starting their first businesses and learning the basics is a lot of work. There’s a huge information arbitrage business built on top of the inefficiencies of the excessive complexity of corporate law.
Another contributing factor is differences between jurisdictions for company creation. In a world where borders are becoming less relevant, distinctions between different jurisdictions are barriers. We’ve seen many interesting projects, like Teleport.org, Incorporations.io, or BitNation, attempt to tackle this problem via indexing, comparison and opening discussions about new possible paradigms for governance. Even some governments, like Estonia with their e-residency program, are exploring ways to optimize their processes. The time is ripe for fresh ideas on shaping the institutions of the new millennium.
We need an open, global, simple, standard understanding of what a company is. We need tools to create and manage a company that anyone can use, designed using current technology, not paper-based forms and processes. We need to stop wasting time talking to lawyers, reading contracts written in legal jargon, and deciphering poorly designed forms. We need easier ways to manage, understand, sign and search contracts. We need better tools for accounting transparency and due diligence reports. Above all, we need legal processes not to be a hassle that takes energy away from real value creation.
This is what we’re building at BitCorps. Join us in our quest to end bureaucracy!