Lawyer Monthly Magazine - March 2020 Edition

14 Front Cover Feature Royce Lane WWW.LAWYER-MONTHLY.COM | MAR 2020 How LARCO is changing the game What does a ‘LARCO’ licence cover? Royce states LARCO is a ‘unique service where business people who require a licence can purchase a shelf company with already approved licences annexed to it’. This system allows you to purchase the company and potentially gain same-day licencing. The aim is to eradicate delays and excessive legal bills. If we take our crypto exchange company above as an example, with new unused companies with licences attached to said companies, you needn’t wait nine months or more for the approval to begin your business venture in the USA. The LARCO licence goes with the Shelf Company, then LARCO works with local authorities in other jurisdictions to obtain regulator recognition, to meet the demands of today’s centralizing world. “We have an unused company set up and sitting on our shelf, called, let’s say, ABC Ltd” explains Royce. “ABC Ltd has already got an approved licence duly annexed and our client buys the company off the shelf, which means they have an approved licence ready to use from day one. Within 25 days, ABC Ltd is fully transferred to the client and then we work to apply our formula to seek official recognition elsewhere” he says. This process is suited for particular industries, however. Royce tells us the most ideal and popular industries are: online gaming, private or public funding, FX brokering, crypto exchange or investment. What is wrong with the current system? Speaking to Royce, he shares that the common time frame for obtaining a business licence to expand abroad can take eight to ten months. The conventional method of moving internationally also runs the risk of causing licence requests being rejected. Royce tells us that “around 20% of licences are rejected, usually due to an inexperienced lawyer incorrectly assessing the case, or due to a bad regulator who failed to observe the due process principles, thus progressing to judicially review the matter before the court.” Do we have reason to be sceptical? Some may be sceptical with the idea, but to ensure that no one takes advantage of the system to allow fraudulent activity to occur, there are conditions of the licence that must be met. Companies will also still need to apply for other separate licences, for example, if they need a liquor licence. Royce reassures us, by saying that all licences are recognised and accepted by the jurisdiction’s regulators, which is confirmed by an acceptance letter. “Yes, with this process being new, some are sceptical. But the regulator’s letter removes the scepticism. “In essence, for example, the licence annexed to the shelf company you purchase may be issued by the EU, leaving you to be sceptical about using it in Singapore, for example. Part of the process we offer is to secure a letter from the Singapore Authority recognising this licence is suitable for use in Singapore.” Royce’s team help you pick what licence you need for your particular business, and assign a LARCO officer to you for three months during the expansion process to ensure a smooth transition of ownership. And in order to ensure that the client requesting a LARCO licence is a legitimate business wanting to expand their company for valid reasons, Royce uses agencies like “World-Check” and/or “Verified” for any Criminal or Civil history. Taking due diligence seriously in this area is important, and Royce states that his staff obtain Notaries KYC records from clients, to gain as much detail to ensure they will be a suitable transferee. Royce hastened to add that, “ Of course client’s criminal/civil history is private and we only share such information with our clients directly.” LM Around 20% of licences are rejected, usually due to an inexperienced lawyer incorrectly assessing the case, or due to a bad regulator who failed to observe the due process principles. LARCO - A New Legal Formula Comendeers The Market