Investment (fixed assets), working capital. Entrepreneurs who want to raise start-up funds must make a reliable business plan or make a prototype to promote the idea. Venture capital may be provided by venture capitalists, angel investors, banks or other financial institutions, usually a huge sum of money, which can pay any or all of the company's main initial costs, such as inventory, licenses, office space and product development.
Venture capital is the funds raised by entrepreneurs to pay the cost of joint ventures until the enterprises start to make profits. Venture capitalists, angel investors and traditional banks are all sources of start-up funds. Many entrepreneurs like venture capital, because investors don't expect returns unless the company is profitable.
Banks provide start-up funds in the form of commercial loans, which is the traditional way to provide funds for new business. Its biggest disadvantage is that it requires entrepreneurs to start repaying debts and interest when the enterprise may not be profitable.
Venture capital from a single investor or a group of investors is an option. Successful applicants usually hand over their shares in the company in exchange for funds. The agreement between venture capital providers and entrepreneurs outlines many possible situations, such as IPO or acquisition of large companies, and defines how investors can benefit from each situation.
Angel investors are venture capitalists, and they will act as consultants for new enterprises themselves. They are usually successful entrepreneurs themselves, and they use part of their profits to participate in new businesses.
Article 7 of the Company Law of People's Republic of China (PRC) shall be issued by the company registration authority. The date of issuance of the business license of the company is the date of establishment of the company.
The company's business license shall specify the company's name, domicile, registered capital, business scope, name of legal representative and other matters.
Where the matters recorded in the company's business license change, the company shall register the change according to law, and the company registration authority shall issue a new business license.
Article 14 A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company.
A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.