Starting a new business requires planning, a good understanding of the business field or industry, especially in emerging fields like fintech, as well as handling the steps for opening a legal entity. The company formation process and the requirements for a fintech company in Cyprus will differ from those in the Africa-Pacific region, however, this business field offers exciting new opportunities for entrepreneurs who have the expertise and innovation to deliver financial products and services.
Financial technology or fintech, in short, is the cumulus of new technologies and innovative services that aim to improve or even replace traditional financial services. From online payment solutions to cryptocurrency wallets or personal finance management, these companies are delivering innovative solutions to individual customers as well as corporations.
Fintech companies in Hong Kong are an example of how a city that has long been a business and financial hub in Asia had adopted the new technology and innovative solutions. The Special Administrative Region is an attractive location to base a fintech company because of the easy company set-up procedure and the low taxes on corporate profits. Other locations that offer advantages for investors and a welcoming business climate include the Netherlands, where opening a Dutch fintech company has the advantage of easily accessing the surrounding European markets.
What to Focus on When Starting a Fintech Company
Here are some points investors can take into consideration when starting a fintech business:
- Specific regulations: the financial regulators in Thailand will adopt a different approach than those from the Netherlands for example; understanding how the law treats companies that offer financial services and whether or not they are regulated by the local financial supervisory authorities is important.
- The team: offering quality and reliable financial services is possible with the help of a professional team; technological and business experience are two important skills to look for when hiring employees for a fintech company in Thailand or any other country.
- The product: the service or product offered by the company will need to be one that answers a need; the market is already populated by companies that offer solutions for personal finance, payments, and insurance; creating a new platform or delivering an improved solution is important for fintech startups regardless of the fact that they are incorporated in an EU country like Ireland or elsewhere.
- Funding: opening a fintech company in Germany, for example, will involve several costs, from the minimum share capital for a GmbH to the ones needed to rent and equip office space; funding for companies in the fintech sector is high and investors can submit their project to a crowdfunding platform.
Please note that the details provided in this article are informative but do not substitute professional company incorporation services. Investors who wish to know more about how to start a fintech company or those who need specialized advice can reach out to a local company formation expert.
Published in Partnership with Bridgewest