Open a Crowdfunding Company in Malaysia

Updated on Monday 20th November 2017

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Small companies and startups in Malaysia have access to a number of funding options, among which is crowdfunding – the practice of raising funds from a large number of contributors.

Investors can open a crowdfunding company in Malaysia and provide a platform for these companies to gain access to a large number of possible funders.

One of our lawyers in Malaysia can help you open a crowdfunding company and observe the special licensing requirements. 

Crowdfunding activities in Malaysia

Compared to traditional fund-raising methods, such as loans or private investments, crowdfunding provides an alternative and far-reaching method to gather the funds they need to start their business in Malaysia. Gaining small investment sums from a large number of individuals or companies is advantageous for many types of companies.

Investors in Malaysia can capitalize on this fund-raising method by setting up a company that offers a platform for this type of activity and facilitates the access and communication between the company asking for capital and the investor. In equity crowdfunding, investors will receive an interest that is equivalent to the amount of their investment in the startup. 

Malaysia is one of the first countries in the ASEAN region to apply a regulatory framework for equity crowdfunding. The regulations also act as guidelines for disclosure rules and the actual fundraising process. Moreover, they provide for a better investor protection. One of our attorneys in Malaysia is able to provide you with complete information on the regulatory framework and the licenses needed for these types of companies. 

Setting up a crowdfunding company in Malaysia

Investors who open a crowdfunding company in Malaysia need to follow the basic company incorporation steps, including choosing a suitable type of company, a unique business name and drawing up the company’s Articles of Association. 

Crowdfunding companies need to gain approval for functioning from the Securities Commission in Malaysia. One of the experts at our law firm in Malaysia can help you with details on the licensing requirements.

Contact us for more information about how to open a crowdfunding company in Malaysia.