The ability of businesses to continue operating beyond the lifetime of their founder(s) was one of several reasons for the emergence of corporate entities. A set of regulations spread across different laws allows corporations to persist despite changes in their shareholders due to death or other factors.
However, an unaddressed need in the legal field is the establishment of corporate entities to operate within the hyper-globalization of both business and technology. Some individuals are already conducting business more effectively through flexible structures that, despite lacking regulation, offer customized solutions. We're referring to solutions driven by technology, ranging from DAOs (Decentralized Autonomous Organizations) to self-regulated ecosystems within the digital asset free market.
DAOs have gained popularity through cryptocurrencies and related projects, often seen as a true "corporation" by many investors. From a business perspective, under the Latin legal system, this common organization of individuals is akin to co-ownership of a company or an irregular partnership, with personal, unlimited, and joint liability for its members. Under common law, it resembles a "partnership," holding its members personally, unlimitedly, and jointly liable in both cases.
Some define DAOs as a "Telegram group" with a bank account. While this definition holds true unless this "group" is organized through a legal framework. Thus, in some places, DAO-type corporations have emerged, which are nothing more than a general partnership agreement with corporate advantages that entrepreneurs obtain from a traditional corporate entity.
In light of this reality, the legal field must enhance mechanisms for the creation and development of corporate entities. A technological-driven legal revolution, utilizing blockchain for the creation and registration of corporations, as well as NFTs as proof of ownership of tangible and intangible assets, and of course, various forms of digital currencies in circulation, is needed. In all these cases, the ability to geolocate transactions must be established to manage legal implications at a specific time and place.
Technological advancement and human business needs necessitate innovation and efficiency in the creation of globally accessible business entities that can operate in both the physical and digital realms. The world of data should be managed by solutions that benefit both consumers and entrepreneurs, creating a key component of the well-known but often forgotten welfare state.
Creating companies through technological means would narrow the gap between the formal economy and informality, fostering inclusion in the commercial system for those outside economic statistics and growth opportunities.
Already, this is happening without any control, fueling informality in many business models that take advantage of the lack of regulation by the state, which often doesn't even understand them. Digital identity and individual interactions in this virtual space generate daily transactional economic volume greater than any traditional commercial record in history.
The current challenge in business law is the creation, through technology, of corporate structures with liability limitation that enables entrepreneurs to navigate a global market swiftly, interconnected with the global financial system, and allows partners to make agile, fully documented, deliberate, and immutable decisions.