Our website uses  cookies for statistical purposes.

  • 23 New Industrial Road, #04-08 Solstice Business Center, Singapore
  • clients(at)opencompanysingapore.com
  • +65 88364489
Our Articles

Set Up a Crowdfunding Company in Singapore

Set Up a Crowdfunding Company in Singapore

The number of startups registered in Singapore has increased considerably in the last year due to the development of most industries, fintech being among the economic sectors growing the most. If starting a company is quite simple and does not imply too much money, running it could generate higher costs and this is how the concept of crowdfunding started becoming popular among investors seeking to raise money for their projects. However, in order to gather money through crowdfunding, one must have a platform which creates the means to obtain financing.

In order to allow for companies to raise funds through crowdfunding, the Monetary Authority of Singapore (MAS) has recently regulated the creation of crowdfunding platforms. Our Singapore company formation consultants can offer information on the latest laws governing the opening of a crowdfunding company.

The video below shows how to create a crowdfunding company in Singapore:

Types of crowdfunding companies in Singapore in 2024

The law provides for the following types of crowdfunding companies in Singapore in 2024:

  • crowdfunding platforms based on donations;
  • crowdfunding companies based on reward;
  • crowdfunding platforms based on equity;
  • crowdfunding companies based on lending.

Our company formation specialists in Singapore can assist with the registration procedure when starting a crowdfunding business in the city-state.

Legislation related to opening a crowdfunding platform in Singapore

Singapore is a Southeast Asian financial technology hub which implies a strong framework which provides for the legal ways in which money can be raised through crowdfunding. Last year, the MAS announced a new rule which applies when opening a crowdfunding company and that is a licensing phase right after the Singapore company formation process is completed.

The new legislation provides for the following:

  • a share capital of 500,000 SGD and a capital markets service license for lending-based crowdfunding companies;
  • crowdfunding companies accepting institutional investors only will need a minimum share capital of 50,000 SGD.

Crowdfunding – a popular way to raise capital in Singapore

Considering Singapore is home to a large number of startups, the most popular way for these to raise money is through crowdfunding. This is why, setting up a company in Singapore a platform for gathering capital for such businesses is also often met in the city-state.

Why should you open a crowdfunding business in Singapore in 2024? Here are some numbers that may convince you:

  • by the end of 2024, the total transaction value of this market is expected to reach USD 0.6 million;
  • by 2028, the transaction value is expected to increase by 0.80% annually;
  • the average funding per campaign is USD 8,800 in 2024.

Foreign investors interested in starting a crowdfunding platform in 2024 can request the services of our company formation agents in Singapore. Please feel free to contact us if you have questions about opening a crowdfunding company in Singapore.