Set Up a Crowd Funding Company in Luxembourg
Set Up a Crowd Funding Company in LuxembourgUpdated on Friday 14th December 2018
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At this moment, Luxembourg is not only one of the best financial centers in the world, but is also emerged as a recognized fintech hub in Europe. Financial technology has enabled a great number of businesses from all industries to grow and lead the economy of the Grand Duchy away from the financial industry. This way, information technology, agriculture, telecommunications, research and development (R&D) and other sectors have developed. However, in order to keep a company going, financial resources are needed and from this point of view Luxembourg has used crowd funding as a micro-financing source for several years now.
Foreign investors interested in setting up a crowd funding business in Luxembourg will enter one of the most developed markets in Europe in terms of alternative financing sources. Our lawyers in Luxembourg can explain the concept of crowd funding.
Registering a crowd funding business in Luxembourg
Luxembourg is home to many EU institutions, as it is also one of the founding members of the European Union, which makes it one of the most appealing countries in the world to set up business in. The growing number of startups has led to the development of the crowd funding scene in Luxembourg, therefore allowing investors to explore this option.
The registration of a crowd funding company in Luxembourg is not complicated and does not require any special licenses as other financial companies do in the case of certain companies. However, an authorization from the Luxembourg Commission for Supervision of the Financial Sector (CSSF) is required. The crowd funding platform through which money can be raised requires only a secure website.
Our law firm in Luxembourg can assist with the registration process of a crowd funding platform in the Grand Duchy.
What types of crowd funding platforms can be set up in Luxembourg?
Even if donation and reward-based crowd funding platforms were popular until several years back, now investment and lending-based crowd funding companies are more popular in Luxembourg. These two last ones are also the ones requiring the authorization of the CSSF because they raise money from qualified investors. This is also one of the reasons for their popularity, as apart from the money, startups can also acquire know-how from the investors.
If you are interested in starting a crowd funding business in Luxembourg and need help, do not hesitate to contact us.