What is the legal process for setting up a venture capital fund in China?

The legal process for setting up a venture capital fund in China involves several steps. Firstly, applicants must obtain approval from the China Securities Regulatory Commission (CSRC) to serve as a venture capital fund manager. This entails submitting a variety of documents as part of the application process, which typically includes: registration form, financial statements and a business plan. After receiving approval, a venture capital fund manager can register the venture capital fund with the Bureau of Industry and Commerce. The process requires filing an Application for Establishment of a Legal Entity and registration of the venture fund’s name with the Bureau. The next step is to obtain approval from the CSRC for the fund’s investment portfolio. This step includes preparing a detailed financial report which will be reviewed and approved by the CSRC. Upon approval, the fund can then begin to raise capital. China’s domestic capital markets are open to foreign investors, so venture funds can receive capital from both domestic and foreign investors. Finally, the venture capital fund must register with the State Administration of Foreign Exchange (SAFE) if it intends to receive foreign currency investments. As part of this process, the fund must provide a bank guarantee and open a foreign exchange subsidiary account. Once all of the steps are completed, the venture capital fund will be able to begin operation in China.

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What is the legal process for setting up a venture capital fund in China?

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