represents a system through which a large group of investors is able to fund start-up and small companies in exchange for equity. The investors inject capital into a business and in return, they get to own shares in that company
. And when the business succeeds, the value of the shares in that business increases, as well.
Registering a crowdfunding firm in Estonia
Investors who intend to open a crowdfunding platform in Estonia
have to register the company first in the country. Our Estonian company formation agents
can help with the entire registration procedure of a business here.
The steps required when an investor wants to open a company in Estonia are:
• Choosing a name for the company;
• Verifying the availability of the business name;
• Registering the business at the Commercial Register;
• Registering the business as a VAT payer;
• Registering all the employees at the Employee Registry.
Legislation connected to crowdfunding in Estonia
The crowdfunding scene in Estonia is generally regulated by a good practices guide, generated by the FinanceEstonia crowdfunding task-force.
The platforms which have adhered to these guidelines are more open, safer and more transparent. The regulated platforms are those which are dealing with loans, which require a special permit from the financial inspection.
Considerations related to crowdfunding in Estonia
Investors who want to open a crowdfunding company in Estonia should consider different aspects, such as:
• Being able to manage a large group of investors and the administrative tasks which come along;
• Making sure that the investors do not gain control of the company, if this is not the intention;
• Should the share capital be divided into classes of shares to ensure permanent control?
• Changing the Articles of Association so that the business can communicate electronically with the shareholders;
If you are interested in setting up an Estonian crowdfunding business
and you need help, please speak
to our company formation
advisors in Estonia