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 governed by the China Business Ventures Law (CBVL). According to this law, all venture capital funds must be established as either a limited partnership or a limited company. First, the venture capital fund must file an application with the relevant securities regulator in order to obtain a license to operate. Then, the venture capital fund must register with the China Venture Capital Association, which provides oversight and regulation of the fund’s activities. After registration, the venture capital fund must define its investment strategies and hold at least one meeting of its investor base. Depending on the size and focus of the fund, a prospectus may be required. The fund must then register its investment activities with the China Securities Regulatory Commission before it can begin doing business. Finally, the venture capital fund must agree to comply with all applicable laws in China, including provisions of the CBVL. This includes the requirement to file regular reports with the securities regulator and to be subject to surprise audits from regulators. By following the legal process established by the CBVL and other applicable laws, venture capital funds in China can ensure they are operating within the parameters of the law.

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

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