1. The establishment of a securities company must be approved by the State Council. Without approval, no one may engage in securities business. The major shareholder is profitable, and has no major bad or illegal criminal record in the last three years. The net assets are not less than 200 million. Engaged in securities brokerage business and securities investment consulting, the registered capital of not less than 50 million. Articles of association and business license must be approved by the State Council. Article 124 of the Securities Law: To establish a securities company, the following conditions shall be met: (1) There are articles of association that comply with laws and administrative regulations; (2) The major shareholders are profitable continuously, have a good reputation, have no record of major violations of laws and regulations in the last three years, and have net assets of not less than 200 million yuan; (3) Having a registered capital that meets the requirements of this Law; (4) The directors, supervisors and senior managers are qualified for the post, and the employees are qualified for securities business; (5) Having a sound risk management and internal control system; (6) Having qualified business premises and business facilities; (seven) other conditions stipulated by laws, administrative regulations and the State Council securities regulatory agency approved by the State Council.
Legal objectivity:
Article 118 of the Securities Law of People's Republic of China (PRC) to establish a securities company shall meet the following conditions and be approved by the securities regulatory authority of the State Council: (1) Having articles of association that comply with the provisions of laws and administrative regulations; (2) The major shareholders and actual controllers of the company are in good financial condition, with good credit records, and have no record of major violations of laws and regulations in the last three years; (3) Having the registered capital of the company that meets the requirements of this Law; (4) Directors, supervisors, senior managers and employees meet the requirements as prescribed in this Law; (5) Having a sound risk management and internal control system; (6) Having qualified business premises, business facilities and information technology systems; (seven) other conditions stipulated by laws and administrative regulations and approved by the the State Council securities regulatory authority. Without the approval of the State Council securities regulatory authority, no unit or individual may engage in securities business activities in the name of a securities company.