France was one of the first countries in the world to create a legal framework for crowd funding. In order to adhere to new international financial standards, France amended the crowd funding regulations is 2014 when the number of platforms through which startups could raise money rose to 70. Also, at the time the French crowd funding market was worth more than 250 million euros. At this moment, France is the second largest crowd funding market in Europe.
Foreign investors seeking to open a crowd funding business in France should know that under the current legislation they can raise up to 1 million euros for companies seeking funding. Our company registration agents in France can assist investors who want to create crowd funding platforms in this country.
The company formation of a French crowd funding business is the same as for any other financial company. However, the French market has certain particularities to which crowd funding companies must adhere. Among these are:
The managers of the platforms must have a financial background and a good reputation. Also, French crowd funding companies must disclose the risk related to investing in the securities issued through their platforms.
There are also regulations which French companies seeking to gather funds through crowd funding. Our company formation advisors in France can explain these rules.
Local and foreign enterprisers who want to create crowd funding platforms in France have several choices on the type of services they want to offer. The French legislation accepts the following types of crowd funding companies:
For assistance in setting up a crowd funding company in this country, please feel free to contact our French company formation consultants.