What is commercial factoring and how to register commercial factoring

Mondo Finance Updated on 2024-02-05

The specific steps of factoring company registration.

Conditions and procedures for the registration and change of commercial factoring companies.

One article and seven steps will take you through the registration process of a commercial factoring company.

What is commercial factoring and how to register commercial factoring

The country's ** can register a commercial factoring company.

Overview: What is Commercial Factoring?

Commercial factoring refers to the transfer of accounts receivable arising from the sales or service contract signed between the merchant and the buyer to the factor, and the factor provides comprehensive financial services such as accounts receivable financing, accounts receivable management and collection, and credit risk management.

1. Conditions for the registration of foreign-funded commercial factoring:

1.The registered capital shall not be less than 50 million yuan.

2.Investors should have the corresponding asset scale and financial strength to carry out factoring business, and have no recent record of penalties for violations.

3.It should be established in the form of a limited liability company.

4.The words "commercial factoring" should be indicated in the name.

5.It shall establish a corresponding management system for the development of factoring business, improve relevant business processes and operational specifications, report financial statements, compliance explanations, and business development to the Municipal Economic and Trade Information Commission every six months, and be responsible for the authenticity, accuracy and completeness of the reports and materials.

6.At the time of application for establishment, there shall be two or more senior managers with more than 3 years of management experience in the financial field and no bad credit records.

II. Registration Requirements for Domestic Commercial Factoring:

1.Investors should have the corresponding asset scale and financial strength to carry out factoring business, and have no recent record of penalties for violations.

2.The registered capital is not less than 5 million yuan (subscribed) and is true and legal;

3.No mixed business operation.;

4.There should be a sound internal control system;

5.At the time of application for establishment, there shall be two or more senior managers with more than 3 years of management experience in the financial field and no bad credit records.

3. Domestic capital registration process.

1) Name pre-approval.

2) (2) Industrial and commercial declaration.

3) Industrial and commercial audit.

4) Seal filing and bank account opening.

IV. Registration Conditions and Process of Foreign-funded Commercial Factoring Companies:

Please note that the overseas company cannot be a shell company, and must provide a credit certificate report with total assets of not less than 5 million US dollars.

Proposed directors, supervisors and senior executives must have a full-time bachelor's degree, professional background in financial accounting, economic management, business administration, law, etc., and have more than 5 years of experience in the financial industry.

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