In order to encourage foreign investors to invest in China and accelerate the exchange of advanced technology and management experience, the relevant department in China has made many favorable policies for them. However, setting up a company in China will not only need your interest, but also your basic conditions, especially for an investment company.

1. Conditions for Establishing Investment Companies
First, an applicant foreign investor should have sound credit and economic strength required for the establishment of an investment company. So your total assets in the year prior to the application should be no less than US$400 million.

In addition, you should have already established a foreign-funded enterprise within the territory of China, and have paid in a minimum of $10 million in registered capital, and also receive approval for a minimum of three of its investment project proposals.

Second, when choosing a joint venture investment company, the Chinese investor you have founded should have sound credit and economic strength required for the establishment of an investment company. Its total assets should be no less than 100 million RMB.

Third, the registered capital of an investment company should be no less than $30 million. 
 
2. Regulations on Registered Capital
While the Chinese investor can use RMB, remember that you should make your investment in convertible currency for registered capital. As an investor, you should pay off the registered capital within two years beginning from the issuance date of the business license. 
 
3. Functions of Your Investment Company
In China, the following operations have been entirely or partially upon approval. You can get some advice for your future business scope.

(1) You could make investment in industry, agriculture, infrastructure and energy encouraged and permitted by the state for foreign investment.
 
(2) Your investment company can assist or act as an agent of its invested enterprises to purchase domestically or internationally machines and office equipment for use by the invested enterprises, and raw materials, components and parts needed in the production activities of the invested enterprises.

It can also provide comprehensive services, such as transportation and storage, for the invested enterprises.

(3) Purchase and export commodities from within Chinese territory that is not subject to export quotas or the export permits.

(4) Setting up research and development centers or offices in China to develop new products and high and new technologies is also a good choice. Later you can transfer the research and development achievements, and provide related technological services.

(5) You can choose to assist the invested enterprises in finding loans and provide guarantee, and the amount of loans to an investment company should not exceed four times the registered capital the company has paid in.

I want to set up a company in China