top of page
Search

How Many Companies Do You Need for a Web3 Project?

  • Jun 29, 2025
  • 2 min read

While there’s no one-size-fits-all answer, most serious Web3 projects typically require 2–4 legal entities, each with a clear purpose. Here’s a breakdown:


1. Operating Company

Purpose: Manages the day-to-day business (team, marketing, partnerships, payroll, etc.)

  • Jurisdictions: Singapore, Hong Kong, Delaware (US), UAE

  • Bank account for fiat operations

  • Enters into contracts and hires employees

✅ Why? Keeps operations legally distinct from token issuance or IP holding


 2. Foundation or DAO Legal Wrapper

Purpose: Issues the token, governs the protocol, and holds the community treasury

  • Jurisdictions: Cayman Islands, Panama, BVI, Switzerland (Zug), Liechtenstein

  • Non-profit structure preferred

  • Cannot distribute profits to founders

✅ Why? Provides legal clarity for token issuance and decentralization narrative


3. IP Holding Company (Optional)

Purpose: Holds the core technology (smart contracts, trademarks, brand IP)

  • Jurisdictions: Singapore, Ireland, BVI, Seychelles

  • Licenses the IP to the operating company or DAO

✅ Why? Protects core assets and enables licensing or royalty streams


4. Token Treasury or Investment Vehicle (Optional)

Purpose: Holds raised capital, manages crypto assets, or makes investments

  • Jurisdictions: British Virgin Islands, Cayman, or Delaware LP

  • Used when fundraising via SAFEs, SAFTs, or token sales

✅ Why? Separates investor funds from operating capital or protocol governance


📌 Summary Table

🧠 Final Thoughts: How Many Companies Do You Really Need?

  • MVP Stage: 1 entity (Operating Co) may be enough

  • Token + Community Growth Stage: Add 1 Foundation or DAO wrapper

  • Investor-Focused + Long-Term Project: 3–4 structures for legal clarity, decentralization, and tax efficiency

💡 Pro Tip: Start lean—but structure smart. Investors, exchanges, and regulators increasingly expect proper separation between entities


Contact us 👍

What’s app : +44 7451222110

Telegram: +66 936825227


 
 
 

Comments

bottom of page