Create a Crowdfunding Company in Norway
Create a Crowdfunding Company in NorwayUpdated on Thursday 08th February 2018
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The crowdfunding strategy has become a more and more popular alternative for the financing of a new company in Norway. By launching an idea in the public domain and asking for support from various entities, many businesses succeed eventually to become reality. The investors can be either big names in various industries or even individual contributors. Our law firm in Norway can offer you all information you may need regarding the alternative finance market in this country and the provisions you need to respect in order to set up a crowdfunding company in Norway.
Crowdfunding in Norway
Norway has a lot to offer for people who want to open a crowdfunding company in this country. Some of the most active players in the crowdfunding scene in Norway have developed a Nordic crowdfunding alliance which makes this country a very friendly environment for setting up a business in this sector. Some of the objectives of the alliance are to help investors in testing business concepts and to organize events, in which contributor relations to be established.
Any investor can access crowdfunding services and set specific conditions for the repayment. There are several methods to access funds through crowdfunding such as:
• equity crowdfunding, which functions by selling a part of the business in advance to other investors in order to have enough funds for financing it;
• rewards based crowdfunding, selling in advance your products to interested customers at advantageous prices;
• marketplace lending, which means gathering funds by borrowing from different entities with advantageous rates;
• donation based funds, mostly accessed by non-profit entities.
You can rely on the knowledge and experience of our attorneys in Norway in order to find out more about the Norwegian legal framework regulating the financing and the set up of new companies in this country.
Setting up a crowdfunding company in Norway
Regardless whether you want to open a company through crowdfunding or not, you should follow several steps in order to give legal recognition to your business. The name reservation is one of the first things you need to do before anything else along the choice of the business structure. A strong business plan and a good knowledge of the demands on the local market will also help you to have a good start in Norway with your crowdfunding company.
The Business Register in Norway will also demand from investors to have a local business account in which the minimum share capital to be deposited. You can use the same bank account in order to deposit the money obtained through your crowdfunding campaign.
Feel free to contact our Norwegian lawyers for more information on the alternative financing solutions in Norway and on the requirements for opening a crowdfunding entity in this country.