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Articles

Create a Crowdfunding Company in Czech Republic

Updated on Monday 11th December 2017

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Create-a-Crowdfunding-Company-in-Czech-Republic.pngCrowdfunding refers to a newer form of raising capital for different goals, among them being Czech company formation, in which a large group of persons invest small amounts of money to help the respective business to start its operations. Crowdfunding is usually employed in the online environment and has become increasingly popular through the usage of social media platforms. This method of obtaining capital is becoming more and more attractive in the Czech Republic and the field benefits from certain regulations. Our team of specialists in company formation in Czech Republic can offer assistance on the crowdfunding laws applicable here. 
 

Characteristics of crowdfunding in Czech Republic  

 
Those who want to open a company in Czech Republic can also start a business by raising capital through crowdfunding. There are international websites dedicated to this field, on which investors can present their business idea, but businessmen can also benefit from several crowdfunding websites registered in Czech Republic.
 
As a general rule, the persons participating with small amounts of capital in the respective company can obtain a finished product that will be sold by the legal entity, once the business will become operational, but the rules in this sense can vary. For example, the participants can also be just acknowledged by the company’s representatives as persons who sustained the respective business. 

 

Crowdfunding participants in Czech Republic 

 
As a general rule, funding a project through crowdfunding involves the following entities: 
 
the crowdfunding platforms and their representatives;
investors (who can be natural persons offering small amounts of money);
companies or natural persons starting a business, interested in obtaining funds.
 
Persons interested in starting the procedure of company registration in Czech Republic must know that the field has become very attractive for a wide range of business activities, such as: 
 
companies providing new technologies;
business operations in the field of culture and arts;
real estate purchases (for private matters). 
 
Although the country does not have a specific rule of law regulating crowdfunding, there are certain regulations which also address to this field, such as the Civil Code or the Consumer Protection Act, which can be detailed by our team of agents in company registration in Czech Republic
 
This type of funding can be an appealing method of starting a business and investors are invited to contact our team of consultants in company formation in Czech Republic for further information on the advantages of crowdfunding
 

Comments

  • Collin 2017-10-04

    I think that more and more companies are interested in crowdfunding, as it provides certain advantages, especially when considering that a wide range of business fields can obtain funds through this method.

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