Interim Administrative Measures for Venture Capital Investment Enterprises

Interim Administrative Measures for Venture Capital Investment Enterprises

Order of the State Development and Reform Commission [2005] No. 39

November 15, 2005

Approved by the State Council on September 7, 2005, and jointly promulgated on November 15, 2005, by the State Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Commerce, the People's Bank of China, the State Administration of Taxation, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange, the Interim Measures shall come into force as of March 1, 2006.

Attached: Interim Administrative Measures for Venture Capital Investment Enterprises

Chapter I General Provisions
　
Article 1 For the purposes of promoting the development of venture capital investment enterprises, standardising their operation, and encouraging their investment in small and medium-sized enterprises, especially new and high-tech ones, these Measures are formulated in accordance with the Company Law of the People's Republic of China, the Law of the People's Republic of China on the Promotion of Small and Medium-sized Enterprises and other laws and regulations.
　
Article 2 The term "venture capital investment enterprise" as use in these Measures refers to an enterprise incorporated within the territory of the People's Republic of China mainly engaged in venture capital investment.
The term "venture capital investment" as used in the previous paragraph refers to a method of investment whereby equity investments are made in start-up enterprises in the hope of reaping capital gains mainly through equity transfers after the invested start-up matures or is relatively mature.
The term "start-up enterprises" as used in the previous paragraph refers to growth enterprises being set up or re-established, which are registered and established within the territory of the People's Republic of China, excluding those already listed.
　
Article 3 The state exercises archival filing administration over venture capital investment enterprises. All venture capital investment enterprises that have completed the procedures for archival filing in accordance with these Measures shall accept the supervision of administrative departments in charge of venture capital investment enterprises; those whose investment operations conform to relevant regulations may enjoy policy support. Venture capital investment enterprises that fail to complete the procedure of archival filing prescribed in these Measures shall not be subject to the supervision of administrative departments in charge of venture capital investment enterprises, nor will they enjoy policy support.
　
Article 4 Administrative departments in charge of archival filing of venture capital investment enterprises are categorised into two levels-one at the State Council level and the other at the provincial (including sub-provincial) level. The State Development and Reform Commission shall be the administrative department at the State Council level, and administrative departments at the provincial (including sub-provincial) level should be determined by the people's governments at the same level and exercise its duties and responsibilities of archival filing administration accordingly after filing with the administrative department of the State Council for record-keeping and be subject to guidance from the administrative department of the State Council in handling archival filing administration of venture capital investment enterprises.
　
Article 5 The Provisions Concerning the Administration of Foreign-funded Venture Capital Investment Enterprises shall apply to overseas-funded venture capital investment enterprises.
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