Foreign investors who want to open companies in Turkey have several performant industries they can operate in. Among these, the fintech sector has gained popularity in Turkey just like in other European countries, as the government also issued a new law related to completing various activities in this field.
Setting up a crowdfunding company is perhaps one of the best ideas for starting a business in Turkey under the new law. Below, our company formation specialists in Turkey explain the requirements related to starting a crowdfunding business. You can rely on us for assistance in registering a crowdfunding business in Turkey.
Crowdfunding implies gathering funds for a specific project (usually an innovative one) by gathering small amounts of money from a large number of persons. Most of the times, the funds are raised via the Internet through specialized platforms where the project is presented, or better said promoted.
Crowdfunding is also regarded as an alternative source of financing with the great benefit that it implies less paperwork than when contracting a loan with a bank.
Nowadays, crowdfunding has become quite popular in Turkey, which is why at the end of 2017, the government has amended the Capital Markets Law with new provisions related to crowdfunding.
In December 2017, the Turkish government issued an amendment to the Capital Markets Law, amendment number 6362, through which equity crowdfunding was introduced in the national legislation.
The amendment provides for the following:
Our Turkish company formation agents can offer more information on the legislation related to crowdfunding.
Those who want to operate crowdfunding platforms in Turkey must first register companies with the Trade Register. Upon the opening of the company, the following requirements must be respected:
Our local consultants can help foreign investors who want to set up crowdfunding companies in Turkey to register joint stock companies which meet the requirements imposed by the Turkish Capital Markets Board.
According to the law, crowdfunding companies must comply with a few requirements in order to help startup companies gather funds for their projects. The first thing to consider is that a startup company in Turkey must enter a membership contract with the platform. The startup must be registered for at least 2 years in order to be promoted on the platform. Also, its activities must be related to technology or manufacturing.
Considering a crowdfunding company in Turkey must have members who invest in projects, membership can be acquired based on the compliance with the following requirements:
According to recent statistics, crowdfunding in Turkey:
If you want to set up a crowdfunding company in Turkey and need assistance, please contact our company registration agents.