Financial technology is one of the newest and best performing industries at global level at this moment. Foreign investors seek for countries where this sector is regulated in order to open companies which offer innovative financial services or issue cryptocurrencies. However, starting a fintech company doesn’t come cheap and any type of help is welcome. This is how crowd funding platforms through which raising money from investors have appeared all over the world, including in Russia. What should be noted is that crowd funding in not possible for financial companies only, but for businesses operating in all industries in Russia and everywhere in the world.
Investors who want to open crowd funding companies can receive assistance from our law firm in Russia.
Crowd funding is not regulated in Russia at this moment, however, it probably won’t take long before the country has a legal framework in place which allows startups to gather funds this way. The Russian National Bank has started working on a set of rules for the establishment of crowd funding companies since the end of 2016. Even if no law has been issued until this moment, it does not mean that opening a crowd funding business Russia is forbidden. Moreover, small and medium-sized enterprises are already raising money through crowd funding. At the end of 2016, the total amount of money raised through crowd funding was approximately 500 million rubles.
The first step to establish a crowd funding business in Russia is to register a company. This process can be handled by our Russian lawyers. Then, a website which serves as a platform for the raise of money should be set up.
There are several types of crowd funding companies which can be opened, among which debt or equity financing platforms, donation-based crowd funding platforms and reward-based companies. The most common types of crowd funding companies in Russia are equity and debt financial platforms.
Foreign investors who want to start crowd funding businesses in this country, can rely on the services provided by our Russian law firm. Do not hesitate to contact us for assistance in registering the company.
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