A crowdfunding company
has as a main characteristic the fact that it raises the necessary capital
for conducting a specific business purpose from a large number of investors
. This can be achieved by collecting small amounts of money
such persons (or other legal entities) have invested in the respective business. Businessmen interested in Irish company formation
for a crowfunding company
should know that most of such businesses gather their capital
through social media platforms
and, as a general rule, through online communication methods
. Our team of consultants in company registration in Ireland
can provide in-depth advice on the main aspects regarding this type of business.
Main sources of income through crowdfunding in Ireland
Crowdfunding is a typical means of collecting capital which is usually enforced by start-ups in Ireland or small and medium sized companies (SMEs). The method represents an apealling alternative to the traditional manner of obtaing capital for a company, which is usually handled through a banking institution.
Investors who want to open a company in Ireland
with the purpose of offering crowdfunding services
must know that there are three main types of crowdfunding options
, as follows:
• donation, usually applied for charitable purposes or small rewards (generally referring to the products or services provided by the company, once the business will start its operations);
(in which the parties will invest in the Irish company
knowing that the respective sum of money
will be repaid with interest
(the investor will benefit from a percentage of the company’s profits
Regulatory framework in Ireland
Since this option for raising capital is rather new, the Irish authorities have not yet established a suitable regulatory framework. However, in April 2017, the local government presented a consultation paper on this matter, setting up a public consultation regarding the need of creating a legislative framework for crowdfunding companies.
will establish if specific rules of law
(such as the Central Bank Act 2013
) should apply to the field of crowdfunding
. At the same time, it will verify if the crowdfunding platforms
are to be regulated under specific provisions.
Businessmen interested in starting the procedure of company formation in Ireland
in this field are invited to contact our team of consultants
for further information on this subject.