Conditions for establishing an investment company
1. An investment company is a company that invests with its own assets and takes investment as its main business. It is different from financial trust and investment companies. The Company Law of People's Republic of China (PRC) has affirmed the form of investment company, so it should be allowed to set up investment companies. The establishment of an investment company does not require the approval of the People's Bank of China.
2. The investment business and direct business of an investment company should be distinguished. The "investment" in the business scope of an investment company refers to the scope of the company's investment in a certain industry, rather than the company's direct operation of the business. For example, "investing in tourism" means that companies can invest in tourism, but it does not mean operating tourism business. As an investment field, tourism does not need the approval of the industry management department.
3. An investment company established by domestic capital may express its investment scope in general language when approving its business scope, except for areas prohibited by national laws and administrative regulations. In addition to investment, investment companies can directly engage in other businesses. If the business directly engaged in is subject to examination and approval according to laws and administrative regulations, it shall be reported to the relevant departments for examination and approval.
4. If one person (one shareholder) registers an investment company, the registered capital must be in place at one time, and the investment cannot be made by installments. Where there are two or more registered investment companies, the registered capital can be contributed in batches. The first batch of registered capital is not less than 20% of the total registered capital, and the remaining registered capital can be put in place within 5 years.
Legal basis: People's Republic of China (PRC) Company Law.
Article 23 To establish a limited liability company, the following conditions shall be met:
(1) Shareholders meet the quorum;
(2) The capital contribution subscribed by all shareholders in accordance with the Articles of Association;
(3) Shareholders * * * agree to formulate the Articles of Association;
(4) Having a company name and establishing an organization meeting the requirements of a limited liability company;
(5) Having a company domicile.
Article 24 A limited liability company shall be established by capital contribution of shareholders with less than 50 persons.
Article 27 Shareholders may make capital contributions in cash or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in money and can be transferred according to law. However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations.
Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.