How To Start a Fintech Startup You Need To Know

The fintech startup has become one of the important instruments that can support the digital economy. You can see that people’s needs for financial needs are increasing. If you are interested in establishing a startup fintech, read the following review about how to start a fintech startup.

The fintech startup has a great opportunity to continue to progress and develop. However, if you want to start a fintech startup, you have to prepare a lot of things. If you are curious about how to start a fintech startup, let’s read the review below:

1.     You Must Establish a Limited Liability Company

If you want to establish a fintech-based company, the option of the business entity is to have a Limited Liability Company. The company you are going to set up should be a legal entity and aim for profit.

The advantage of establishing a legal entity ltd is to separate company assets from personal assets. So, if the company loses, then what is taken are the company’s assets not the property of shareholders.

2.     Make Sure You Meet The Capital Requirements

If you want to start a fintech startup, then you have to make sure you have enough capital. It is because this business does require a lot of capital to be able to develop and progress. This is also because your business is a money lending service.

However, when you want to set up a fintech startup, you have to go through the licensing process. The licensing process requires you to have a minimum capital of 2.5 billion rupiahs.

3.     You Must Register a Business License

You must meet the requirements of a company establishment. Make sure you meet all the requirements completely and there is nothing you miss. In addition to submitting any documents, you must also submit your company’s one-year work plan.

You must submit a description of the business activities that you will do. Furthermore, you must also provide information about the targets you want to achieve. Then, you can tell about the steps you take to meet these targets.

4.     Start to Find a Business Place

If your capital is very minimal, you can just use Virtual Office. However, you must have a certificate explaining that you only use the virtual office. This is because you will usually be asked about proof of ownership of the building or office space.

This, of course, requires you to have a physical office as a place of business. However, it is better if you already have a physical place of business.

5.     Make Company Regulations

Another thing you should pay attention to is that you have to make company rules. Since you are in the fintech area, then make rules about money lending services. For example, you must make regulations about the maximum loan amount.

Make simple but clear rules. Do not let these regulations confuse your consumers because you can also lose. Make a clear agreement between you and your customers because it is a matter of money.

Now you know about how to start a fintech startup. This method has certainly been simplified so that you more easily understand it. Make sure you meet all the requirements so you can easily set up a fintech startup.