SelfKey has chosen to be established as a foundation, because the unique characteristics of this type of legal entity are more in line with the project than those of a corporation or a limited liability company.

The SelfKey Foundation is:

A non-profit organization;

Has no owners/shareholders;

Has been established solely to carry out a specific purpose and not for the benefit of any particular individual(s);

Provides for perpetuity of purpose.

The SelfKey Foundation has not appointed any beneficiaries and is established solely for the purpose of the advancement of human rights and fundamental freedoms related to digital identity sovereignty.

The Founder of the SelfKey Foundation is KYC-Chain Limited, a for-profit company incorporated in Hong Kong which has donated certain code to the SelfKey Foundation to enable and further self-sovereign digital identity initiatives.

The management of a Foundation rests with its Council members, who have the duty to carry out the purpose of the foundation as instructed by the Foundation charter.

The Foundation is established in Ebene CyberCity an Information Technology cluster located in the island of Mauritius.

Why Mauritius?

Mauritius is a politically stable jurisdiction, highly ranked for democracy and for economic and political freedom.

It is the largest international financial and business hub in the Indian Ocean region with a strong liberal economy, a reputable banking system, a wide offer of qualified professional services, and a pro-business and flexible regulatory framework that provides reliability and security.

Mauritius is variously referred to as “Ethereum Island” and is becoming an international hub for blockchain startups. SelfKey chose Mauritius for the following reasons:

1) Regulatory Sandbox

The Regulatory Sandbox License (RSL) launched in Oct 2016, and provides companies and startups with the opportunity to to test innovative products, services, business models and delivery mechanisms in the real market, with real consumers, but with regulatory supervision.

The Mauritius board of investment has publicly announced their desire to attract blockchain startups to Mauritius.

Unlike other jurisdictions such as Switzerland, the UK and Singapore, where their sandboxes are aimed at companies conducting banking activities, the RSL in Mauritius is available for entities innovating in fields related to financial technology, digital identities, digital currency, online healthcare, blockchain and decentralization systems of information, among others.

This sandbox framework, makes Mauritius one of the most attractive jurisdictions for blockchain entities that are seeking to be regulated.

The SelfKey Foundation has already applied for a Mauritius RSL to be able to monetize identity certifications issued by the companies registry of Mauritius.

2) Taxation

In Mauritius, a Foundation of which the founder is a non-resident is exempt from gift and income tax.

Foundations in Switzerland are NOT exempt from tax automatically, and must apply for an exemption based on the facts and circumstances of the foundation.

If we were to set up in Singapore, for a full tax-free status, we would have to apply to the IRAS for Charity status after the registration.

3) Banking

The banking sector in Mauritius is sound and stable and there are various local and international options for setting up a bank account with a regulated financial institution in Mauritius.

Banking in Mauritius is straightforward. Several banks allow for bank account opening remotely, minimum initial deposits, fees are low and multicurrency accounts are available.

4) Foundation laws

The legal flexibility has also played an important role, a foundation can be established to serve a specific purpose and not for the benefit of persons and no minimum initial endowment of assets is required.

By way of comparison, a foundation in Switzerland is established by public deed and requires a minimum initial contribution of CHF 50,000. In Panama, minimum initial patrimony must be US$10,000.

5) Time to form

A foundation in Mauritius can be setup in relatively short amount of time, just a few days to get all the necessary papers, draft the documents and pass the necessary resolutions with the notary public as well as filings with the commercial register.

Although other options, such as Switzerland and Panama also provide relatively quick formation times, both jurisdictions are unpredictable as far as bank account opening is concerned and, in Switzerland, obtaining the approval of the supervision authorities for foundations can be difficult.

Conclusions

We believe Mauritius is an ideal environment to host the SelfKey Ecosystem.

Each blockchain project has its unique complexities and what is the most suitable option for us, might not be for you. In the SelfKey marketplace you can compare more than 10 jurisdictions from a legal and regulatory perspective to help you make an informed choice and then quickly form a foundation in your chosen jurisdiction.

If you wish to know more about the SelfKey Foundation and the SelfKey Ecosystem, we invite you to visit our official website and read our whitepaper.

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For any inquiry, contact us at our Telegram group, we will be happy to resolve any doubts or questions that you might have.