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Create a Crowdfunding Company in Spain

Create a Crowdfunding Company in Spain

Many startup companies in Spain turn to crowdfunding to finance their new business. Equity confounding, also known as investment crowdfunding, is a manner in which a new company can finance its activities.

Certified investors or companies may provide small or startup businesses with the money they need to raise for their activities. Investors who want to create a crowdfunding company in Spain should follow the basic rules for setting up their chosen type of company. Our team of lawyers in Spain is able to help answer your questions about the alternative finance market in the country and the most important regulations in place.

Crowdfunding in Spain

Equity crowdfunding is seen by many entrepreneurs and startup owners in Spain as a very convenient alternative to traditional financing. This method allows startups to sell shares in the company in exchange for capital. The investors who provide capital will share the earning of the company, when or if they occur.

Investors in Spain who set up a crowdfunding platform provide access to this needed capital. The startup interested in acquiring capital will request crowdfunding services and the terms for repayment will be set up as needed. Instead of selling shares in the startup, another method is to give our regular interest payments to the investor, until the loan is paid in full. 

Entrepreneurs who want to enter the crowdfunding market should perform a thorough market research and have a business plan for their new crowdfunding company. Some of these platforms provide general equity crowdfunding services while others offer theirs only to companies or projects in selected business fields.

Setting up a crowdfunding company in Spain

Investors who want to start a crowdfunding company in Spain can follow the basic steps described below:

– choosing the type of company and the company name (needs to be approved for use);

– apply for an interim tax ID for the company and open a bank account;

– deposit the minimum share capital according to the type of company;

– prepare the deed of incorporation at a notary in Spain;

– register the deed with the Mercantile Register;

– obtain the permanent company tax number.

These are only part of the steps, briefly outlined. One of our lawyers in Spain can give you more details on the alternative finance market and how to open a company.

Contact us for detailed information and legal services in Spain.