What conditions does the group need to set up a financial company?

I. Conditions for the Group to Establish a Finance Company According to the Administrative Measures for Finance Companies of Enterprise Groups, an enterprise group applying for the establishment of a finance company shall meet the following conditions: 1, which is in line with the national industrial policy; 2. The registered capital of the parent company in the year before the application is not less than 800 million yuan; 3, the year before the application, according to the provisions of the consolidated accounting of the member units of the total assets of not less than 5 billion yuan, the proportion of net assets of not less than 30%; 4. The total operating income of the member units merged in accordance with the regulations for two consecutive years before the application is not less than 4 billion yuan per year, and the total pre-tax profit is not less than 200 million yuan per year; 5. Stable cash flow and large scale; 6. The parent company has been established for more than 2 years and has experience in internal financial management and fund management of enterprise groups; 7. The corporate governance structure of the parent company is sound, there are no illegal acts, and there is no bad credit record in the past three years; 8. The parent company has its core business; 9. There is no improper related party transaction in the parent company. Except as stipulated in the preceding paragraph of this article, the net assets of a foreign-invested company in the year before application shall not be less than 2 billion yuan, and the total annual pre-tax profits for two consecutive years before application shall not be less than 200 million yuan. Second, the main role of financial companies 1 has promoted the transformation of enterprises from extensive to intensive in the management and use of funds. Before the establishment of the finance company, there was no direct credit relationship between the member enterprises of the group company. Some enterprises often had very tight funds, while others had idle funds. After the establishment of a financial company, member enterprises become shareholders of the financial company, and to a certain extent, they pool the capital of each member enterprise for comprehensive operation. At the same time, financial companies can use financial means to pool the idle funds of the internal affairs enterprises of the group company and make overall arrangements for their use, which can speed up the settlement of funds among the member enterprises of the group company and avoid the occurrence of "triangular debts", thus reducing the financial expenses of the group company as a whole, improving the efficiency of the use of funds of the group company and accelerating the process of integrated operation of assets of the group company. 2. Financial companies take capital as a link and service as a means to enhance the cohesion of the group company. On the one hand, the finance company absorbs some member enterprises of the group company as its own shareholders and connects everyone with the bond of equity capital; On the other hand, the funds absorbed by finance companies have become an important source of credit funds for the member enterprises of the group company, thus further strengthening the ties between the member enterprises of the group company and forming a situation of mutual support and mutual promotion. 3. Solve the urgent need for funds of enterprise groups in time to ensure the normal production and operation of enterprises. Due to various reasons, enterprises often encounter a shortage of funds, which affects the normal operation of production. After the establishment of the finance company, it knows the production characteristics of the enterprise better than the bank, and can provide emergency funds for the enterprise in time to ensure the normal production and business activities. 4. Enhance the financing function of enterprise groups and promote the development of group companies. Finance companies not only handle general deposit, loan and settlement business, but also actively develop new businesses such as bills and buyer's credit according to the development strategy and production and operation characteristics of enterprise groups, which has played a very good role in expanding sales and reducing inventory for enterprises. 5. It is conducive to breaking the situation that the existing banking system funds are divided by administrative regions and promoting the cross-regional and cross-industry development of large group companies. The financial institutions in China have some problems such as vertical arrangement and compartmentalization. The fund management system is classified by administrative regions, and it is difficult for funds to flow across regions. Central enterprises often don't get the support they deserve in local areas, but financial companies can break through geographical restrictions, raise and raise funds from member enterprises that are not in the same area as the headquarters of the group company, provide financial support for projects whose funds can't be in place in time, and ensure the normal production and the scheduled start of projects under construction. 6. It promotes the competition in the financial industry, helps financial institutions to improve service quality and efficiency, and is conducive to the deepening of financial system reform. Among all financial institutions, financial companies are still quite weak, far from being able to compete with other financial institutions, especially banks. However, in order to survive, financial companies must win customers by improving service quality, which objectively plays a role in promoting other financial institutions to deepen reform and improve service quality. To sum up, it is an introduction about the conditions for the group to set up a financial company. To set up a finance company, a group must first have a strong registered capital, and also have certain requirements for the pre-tax profit of the group and the group's credit. On the one hand, the establishment of financial companies can unite the group with finance as a link, on the other hand, it can promote the operation of the group.