Crowdfunding 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
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 providing new technologies;
• business operations in the field of culture and arts;
• real estate purchases (for private matters).
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.