Company Formation Hong Kong
Articles

Crowdfunding for Hong Kong Start-Ups

Updated on Friday 20th May 2016

Rate this article
5 5 1
based on 3 reviews


Crowdfunding-for-Hong-Kong-Start-Ups.jpgCrowdfunding is a method of financing for companies, businesses or projects, that is based on small amounts of money collected from a large number of people via an online platform. Currently, there are no laws in force for regulating crowdfunding for Hong Kong start-ups. However, the platforms that allow for this type of funding are subject to the regular rules and regulations for lending money and the liabilities that may arise therein. 
 
Crowdfunding can be a good option to finance your business and it may be more accessible for certain start-ups than regular loans from a bank in Hong Kong
 

The advantages of crowdfunding in Hong Kong

 
Crowdfunding is a different concept from most alternative financing options for companies, like venture funding. While most companies rely on a large amount of money obtained from very few companies or individuals, those who choose crowdfunding do the opposite by relying on small amounts of money from a large number of people.
 
This approach can be beneficial for small business owners and projects because the fundraiser can also receive direct feedback from the donors. Crowdfunding is also advantageous because it has a low risk for the fundraiser and it is a social collaboration between the business and it possible future target clients.
 

Types of crowd funding in Hong Kong

 
Crowdfunding takes place through an online platform where the fundraiser sets a public donation campaign. The presentation of the project is essential because this is also the first stage when the idea of the project will become known. A deadline for the funding and the amount of needed money are also made public.
 
There is more than one type of crowdfunding, according to the type of investments made:
- equity crowdfunding: shares are offered in exchange for capital;
- debt crowdfunding: the investor receives his money back, plus interest;
- donation crowdfunding: investments with no expectations, simply for the cause; in some cases a reward can be given to the investor such as tickets, albums, free gifts and others.
 
The type of crowdfunding can depend on the type of project. Our company registration agents in Hong Kong can give you more details about how lending is regulated in the city and which option is best for your needs.
 
For more information about alternative funding options for companies as well as start-up costs and the company incorporation process, please contact our company registration representatives in Hong Kong.
 
 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Hong Kong

Call us now at + 852 8191 3385  to set up an appointment with our company formation experts in Hong Kong. As a DM Advisory client, you will benefit from the joint expertise of local lawyers and consultants for opening an offshore company in Hong Kong.

We offer:

- prompt response to your inquiry (maxim 24 hours);

- cost-efficiency: competitive company formation prices;

- free and complete legal information featured on our site, at your disposal.

Tax Calculator

tax-calculator-hong kong

Testimonials

Francesco-Dagnino.jpg

I have been working with partners at OpenCompanyHongKong.com for several years now and I am extremely pleased with their services. Their team helped my clients extend their businesses in Hong Kong.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

We Recommend ClientPedia

This website is marketed by ClientPedia

Banner-Promoting ClientPedia-244px.jpg

We accept online payments

paypal-logo.png