What’s happening with over 2,400 companies, including Binance’s UK office, sharing a small Suffolk building?
A post on the website Reddit has revealed that ” Binance Ltd ” along with nearly 2,400 other companies, use a small building in Suffolk as their registered office address in the UK.
A user named solanawhale posted the address of a “utility closet” that Binance Ltd is registered to use as its office address in the UK on the subreddit r/Buttcoin on Monday.
The registered office address is situated in the town of Mildenhall in Suffolk County, England.
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Google Maps shows that the location is a small, unremarkable garage building on the outskirts of the town, approximately an hour and a half drive from London, the capital of the UK.
A search for the address on Companies House, which is responsible for maintaining the register of companies in the UK, shows that Binance Ltd shares the same address with 2,403 other active companies.
However, the true owner of the address is a company called OfficeServ. OfficeServ is a virtual registered address service provider that claims to provide a “believable business location” according to its website.
The information registered about Binance Ltd on Companies House shows that the company is involved in “other service activities not elsewhere classified.”
Although the details about “Binance Ltd” are unclear, the Financial Conduct Authority (FCA) in the UK has already warned the public about the existence of crypto “clone” firms.
Clone firms are a type of scam in which the scammers use information from legitimate firms to convince people that they are genuine.
A spokesperson from Binance has stated in a comment to blockchain.com that “Binance LTD” is not a part of their exchange. Additionally, the spokesperson has issued a cease and desist order.
What Are Shell Companies? And Why Do They Exist?
Shell companies, also known as ghost companies or paper companies, are business entities with no active business operations or significant assets.
Although shell companies are often used to hide the true ownership of assets or conduct illegal activities, there are legitimate reasons for setting up a shell company.
Some of the common uses of shell companies include tax planning, privacy protection, business ventures, mergers and acquisitions, and real estate investments.
Many multinational corporations use shell companies to minimize tax liabilities by establishing companies in jurisdictions with lower taxes. On the other hand, startups and entrepreneurs may use shell companies to test out new business ideas or protect intellectual property.
Shell companies can also be useful in mergers and acquisitions or during the transition period of a company. Real estate investors may use shell companies to hold properties or to protect themselves from personal liability.
It is worth noting that even some major brands use shell companies for these purposes. For example, the Corporation Trust Company, which is the world’s largest registered agent service firm, is used by thousands of businesses, including major companies such as Google, Walmart, Coca-Cola, and Apple.