Establish a Crowdfunding Company in Canada

Updated on Thursday 01st November 2018

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Entrepreneurs who want to open companies in the fintech industry in Canada have various choices when it comes to the activities they can undertake as the government here is very open towards innovation in the financial sector.

Crowdfunding businesses are among the most popular types of fintech companies which can be established in Canada and which are also supported by the local authorities. If are interested in starting a business in Canada as a crowdfunding platform, our local consultants can guide you.
 

How to register a crowdfunding platform in Canada


Even if this type of business will usually gather money through an online platform, the company registration procedure with the Canadian Trade Register is mandatory. This will imply choosing a suitable business form, registering it with the local or federal Companies Registrar and then applying for an authorization with the Financial Supervisory Authority.

The Canadian crowdfunding platform will also need to register a domain name and set up a website through which it can collect money on behalf of applicants.
 

Types of crowdfunding platforms in Canada


There are several types of crowdfunding platforms which can be established. These are:
 
  •           reward-based crowdfunding platforms which provide for rewards for those contributing to the cause of the applicant;
  •           equity-based crowdfunding platforms which allow investors to put money into an existing business in exchange for shares in the company;
  •           donation-based crowdfunding platforms which imply donating for specific causes;
  •           debt crowdfunding platforms which imply lenders who give money to companies through the platform.

At the moment, Canada has clear regulations for the first three types of crowdfunding companies.

Our company formation agents in Canada can help foreign investors who want to register crowdfunding platforms here.
 

Why set up a crowdfunding company in Canada?


Crowdfunding benefits from clear regulations in each Canadian province, therefore the investors will be able to choose the best region in accordance with his needs. Also, the great number of startups which request the services of such platforms has increased a lot in the last few years which make this type of company very profitable.

If you want to open a crowdfunding company and need help, please contact our company registration advisors in Canada.

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