Nov 3, 2009, 05:26AM | #2
AmericanWriter, you have highlighted the source of the most pressing problem confronting this industry. Individuals with no ties, whatsoever, to the United States, the United Kingdom, Canada, etc. can legally claim that they are British/American. This is entirely due to the phenomenon of online company formation agencies. An Indian, Ukrainian, Pakistani (pick any nationality) can log onto any company formation agency, pay something like $50 and, within a few short hours, be a legally registered British/American company. The primary problem is that the owners, Directors or person legally responsible for the company, are almost completely beyond the reach of the law. If you, as the Director, owner, etc., are British, you are obliged to adhere to very strict laws AND pay taxes. Should we engage in blatantly false advertising, fail to provide a service whose quality satisfies the purpose for which it was purchase or does not meet with our advertised quality standards, etc etc., we are in trouble. Should we fail to uphold our guarantees, we are in trouble. Basically, we have to walk the straight and narrow but they do not. Why? Because we are within the reach of the law, they are not. Can we defraud customers and refuse to pay writers their dues? No, we can't. They can, though.
This online company formation thing is a disaster. It has brought a host of scammers into the industry; has given them the right to claim that they are British or American, despite the fact that they are not bound by the law as we are. So what if they get caught and their companies get shut down? They will just reform, using a different name.
If the Ukrainians, etc. want to operate in this industry, so be it. No problem. At the very least, however, they should be forced to register their companies in countries where the directors/owners are legally accountable - Ukraine! Same with everybody else - register in the country where the owner/Director is legally accountable and is a citizen and resident of.
Sorry for going on about this but it really does get to me.