Austria is one of the most prolific and stable economies in Europe which is very appealing to foreign investors seeking to open companies on this continent. Austria follows the steps of other European countries which are open to startups relying on innovation to develop their activities. However, innovation comes with higher costs than traditional businesses and this is how crowdfunding has become a viable option of raising money.
In 2015, Austria has enabled a new law for companies seeking to raise funds through crowdfunding which is why setting up a crowdfunding platform here is very safe. Our Austrian company formation agents can offer information on the legislation applicable to crowdfunding businesses.
Both local and foreign investors are allowed to open crowdfunding businesses in Austria. In order to do that, one must first register a company with the Trade Registrar and then create the platform, which is usually set up as a website, through which the money will be raised.
It should be noted that the current legislation recognizes two types of crowdfunding business models in Austria:
There are also other types of crowdfunding businesses which can be set up in Austria, such as donation or real estate-based platforms.
Our company registration consultants in Austria can offer more information on these types of crowdfunding companies.
According to the Alternative Financing Law which provides for crowdfunding companies in Austria, these platforms are not allowed to gather more than 5,000 euros per project during a period of 12 months. However, Austria allows both professional and non-professional investors to invest in projects advertised by the crowdfunding company.
All the information provided by an Austrian crowdfunding business must be verified by an accountant or any other specialist. Also, the company must hold a special license issued by the Financial Market Authority in Austria.
For assistance in setting up a crowdfunding company in Austria, please feel free to contact our local representatives.