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 is fairly complex and involves many steps. Generally speaking, a venture capital fund requires special licenses from Chinese regulators and a legal entity in China. First, prospective fund managers must apply for a China Venture Capital Fund Management Qualification from the National Development and Reform Commission (NDRC). This process requires an application, business plan, and other documents. Once this qualification is granted, the fund manager must register with the Asset Management Association of China (AMAC). This process includes filing a record of the fund’s day-to-day operations, goals, investment strategies, and the general information about the fund. After the fund is registered with the AMAC, the fund manager must apply for a Business License from the Administration of Industry and Commerce (AIC). This license allows the fund to officially register the fund and start its operations. Once the fund is established, the fund manager must complete additional registration procedures in order to comply with the China Securities Regulatory Commission’s (CSRC) regulations. With this, the fund manager must submit certain documents and select a corporate residency for the fund in Shanghai or Beijing. After these steps, the venture capital fund is ready to begin operations in China. It is important to note, however, that this process can take up to several months to complete. As such, anyone who wishes to establish a venture capital fund in China should take extra care and diligence in navigating the process.

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

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