Venture capital companies and venture capital funds

Mondo Finance Updated on 2024-02-22

Venture capital enterprises are under the management of the National Development and Reform Commission, and the Interim Measures for the Administration of Venture Capital Enterprises are used as the basis for management and establishment, and Article 2 stipulates that "the term "venture capital enterprises" as used in these Measures refers to enterprises and organizations registered and established within the territory of the People's Republic of China mainly engaged in venture capital. The term "venture capital" as used in the preceding paragraph refers to an investment method in which equity investment is made in a start-up enterprise with a view to obtaining capital appreciation income mainly through equity transfer after the invested start-up enterprise is mature or relatively mature. The term "start-up enterprise" as used in the preceding paragraph refers to a growing enterprise registered and established within the territory of the People's Republic of China that is in the process of establishment or reconstruction, but does not include an enterprise that has been listed on the open market. "The establishment of rubber strips is" (1) has been registered with the administrative department for industry and commerce. (2) The scope of business complies with the provisions of Article 12 of these Measures. (3) The paid-in capital shall not be less than RMB 30 million, or the initial paid-in capital shall not be less than RMB 10 million, and all investors undertake to make up the paid-in capital of not less than RMB 30 million within 5 years after registration. (4) The number of investors shall not exceed 200. Among them, the number of investors who set up a venture capital enterprise in the form of a limited liability company shall not exceed 50. The investment of a single investor in a venture capital enterprise shall not be less than RMB 1 million. All investors should contribute in monetary terms. (5) At least 3 senior managers with more than 2 years of experience in venture capital or related business shall assume investment management responsibilities. If other venture capital enterprises or venture capital management consulting enterprises are entrusted as management consulting institutions to be responsible for their investment management business, the management consulting institutions must have at least three senior managers with more than 2 years of experience in venture capital or related business to bear investment management responsibilities for them. ”

According to the announcement of the Ministry of Finance on the continuation of the implementation of the income tax policy for individual partners of venture capital enterprises, "the individual partners of venture capital enterprises can deduct 70% of the corresponding investment amount of the transferred project from the business income that they can share from the venture capital enterprise and then calculate their tax payable." If the annual accounting loss is made, it shall be allowed to carry forward to the following years in accordance with the relevant regulations. ”

Some people often confuse venture capital enterprises and venture capital**, and sometimes mistakenly think that the partners (or shareholders) in the venture capital ** manager can enjoy tax incentives in accordance with the relevant policies in the Notice of the Ministry of Finance and the State Administration of Taxation on Relevant Tax Policies for Venture Capital Enterprises and Angel Investment Individuals (CS 2018 No. 55), which may cause unnecessary errors in tax declaration and tax plan design.

Venture capital is subordinate to the China Securities Regulatory Commission (CSRC) and is subject to the self-discipline management of the China ** Industry AssociationThe Interim Measures for the Supervision and Administration of Private Investment** stipulates: ".For the purposes of these Measures, the term "venture capital**" refers to equity investment that mainly invests in the ordinary shares of unlisted venture enterprises or preferred shares, convertible bonds and other rights and interests that can be converted into ordinary shares in accordance with the law. Encourage and guide venture capital** to invest in small and micro enterprises in the early stage of entrepreneurship. ”

The supervision of venture capital enterprises focuses on the organization and management of the company (enterprise), pays attention to the annual financial statements, the disposal of the company's major assets, etc., and focuses on the requirements for the enterprise organization put forward in the Company Law, especially the qualifications and resumes of the company's internal team members, and the risk control and the stability and professionalism of the personnel in the company's operation. Venture capital** adopts the China Securities Regulatory Commission system, emphasizing the protection of investors, information disclosure, various investment operations must be compliant, emphasizing the accuracy of information disclosure, and coordinating the relationship between investors and managers.

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