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Establishing Foreign Invested Equity Investment Fund Management Enterprises in Beijing - 在京设立外商投资股权投资基金管理企业暂行办法
February 1, 2010
Released and effective on January 1, 2010
On January 5, 2010, Sina reported that the Beijing Administration of Industry and Commerce (BAIC), the Beijing Commerce Commission (BCC) and the Beijing Reform and Development Commission (BRDC) jointly issued the Interim Measures ("Measures") on establishing Foreign Invested Equity Investment Fund Management Enterprise (FIEIFME), which mainly address:
· These Measures only apply to the FIEIFME in the Zhong Guan Cun National Model Unit in Beijing.
· The FIEIFME can be incorporated in the form of Equity Joint Venture (EJV) or Wholly Foreign Owned Enterprise (WFOE) by the foreign company, enterprise, other economic organization, or individual together with the Chinese company, enterprise and other economic organization. Another article also provides that FIEIFME can be set up in the form of a partnership or other non-company form, where allowed by the relevant national policies.
· Investors need to satisfy the following three conditions when setting up the FIEIFME.
- FIEIFME shall be the limited company (either of EJV or WFOE) and "Fund Management" is allowed to be used in the company name;
- Registered capital of a FIEIFME shall account to no less than U.S.$2 million, and can be contributed in installments;
- FIEIFME shall be equipped with at least two senior managers with two years experience in equity investment fund management and individual records of good faith without records of wrong doing or ongoing economic litigation cases in the past five years.
· The business scope of FIEIFME is limited to undertaking non-security equity investment management and consultation with the mandate from other equity investment funds.
· The Beijing Administration of Industry and Commerce (BAIC), the Beijing Commerce Commission (BCC), the Beijing Finance Bureau (BFB) and the Beijing Reform and Development Commission (BRDC) are the competent authorities responsible for the incorporation, change, registration and supervision of FIEIFME.
· These Measures also apply to a company, enterprise, other economic organization, or individual from HK, Macau and Taiwan that wishes to set up a FIEIFME.
· These Measures took effect on January 1, 2010, and will run a three-year interim period.