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Set Up a Crowdfunding Company in Germany

Updated on Wednesday 18th October 2017

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There are many innovative people who have brilliant business ideas and who want to make their dreams reality in a short time. The crowdfunding companies offer to such people the possibility to develop campaigns through which they can gather enough funds to launch their products. Moreover, a crowdfunding company usually provides counselling but it can also manage business projects. Our specialists in company formation in Germany are prepared to help you open a crowdfunding company in Germany so that you can further help other business initiatives to reach the market. 
 

How many types of crowdfunding companies are in Germany?

The legal system in Germany contains flexible provisions concerning commercial law, which allow for several types of crowdfunding companies to function in this country. The most frequent ones are:
 
crowdfunding platforms based on donations;
crowdfunding companies based on reward, which don’t start the production until the campaign has brought in some profits, from the users who decide to buy in advance a product;
crowdfunding platforms based on equity, which rely on funds obtained by selling a portion of the shares in the business to outside investors;
crowdfunding companies based on lending, which try to overcome the drawbacks of paying high bank interests.
 

Each type of crowdfunding business has its advantages and drawbacks, this is why it is recommendable to analyze the options you have and make an informed choice. After you take a decision, one of our specialists in company registration in Germany can help you register it with the German Trade Register.

 

Legal context for opening a crowdfunding business in Germany

The Company Law in Germany is supportive of small enterprises. Since the business ideas which rely on crowdfunding are usually little or medium businesses, Germany has adopted as well legal measures which allow the employment of crowdfunding strategies in order to move on to the production stage. The main law which refers to this domain is the Small Investor Protection Act which was released in 2015. 
 
For sums smaller than 2,5 million euros, crowdfunding platforms are not obliged by the German regulations to publish in detail their prospectus. The investors are also protected by this law, which limits individual investment at 1000 euro. 
 
Feel free to contact our consultants in company registration in Germany to give you all needed information and help you establish a crowdfunding business in this country, in compliance with the German legal system. Our incorporation specialists are experienced in setting up numerous companies in Germany, so in case you want to establish a business in another domain, you should know that our team is ready to assist you.
 

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