Maltese startups and not only have access to various funding sources when it comes to financing their projects. This is because the number of small and medium-sized enterprises has rose considerably in the past few years. Financial technology which also implies crowd funding is currently one of the most popular ways in which Maltese companies can raise capital. However, this option is not only profitable for companies gathering money, but also for those who want to set up crowd funding businesses in Malta.
Recently, the authorities have created a legal framework through which the establishment of crowd funding companies in Malta will be regulated. Our Maltese lawyers can offer information on the latest development related to crowd funding.
What does one need to open crowd funding platform in Malta?
First of all, one will need to register a company in Malta. The limited liability company is probably the best choice thanks to the low incorporation and maintenance costs. Then, the current legislation establishes that a Maltese crowd funding company needs a website which will represent the platform through which the money will be raised.
Our law firm in Malta can assist with the incorporation procedure of a crowd funding company in this country.
Types of crowd funding companies in Malta
Until 2015, raising money was possible through donation and reward-based crowd funding companies in Malta. However, once the new legislation was enabled, equity or investment-based crowd funding platforms have started gaining popularity. Loan-based platforms are also recognized by the Maltese legislation.
While for the first two types of companies there are no specific licensing requirements, in the case of investment-based crowd funding platforms the services provided by the company are deemed financial services, therefore an investment service license must be obtained. However, the Malta Financial Services Authority (MFSA) is currently assessing whether this license must be obtained or not by crowd funding companies.
If you are interested in starting a crowd funding business in Malta and need assistance, please contact our lawyers. You can also rely on our lawyers in Malta for more information on the legislation related to crowd funding.