In order to regulate the approval and management of foreign-invested financing and guarantee enterprises and promote the healthy development of foreign-invested financing and guarantee industry, the guidelines are hereby formulated for approval and establishment of enterprises in all parts of the country.
Ⅰ. Application procedures and approval time limit
After receiving the application materials, the commercial authorities in the project location shall implement preliminary examination to the related materials within 5 working days, and then deliver and report the application materials to the provincial commercial authorities. After receiving all the application materials, the provincial commercial authorities shall make the decision whether to approve within 30 working days; for those approved, Approval Certificate for Foreign Investment shall be granted; for those disapproved, reasons shall be given in written form.
Ⅱ. Conditions for application
(I) Qualification conditions for investors
It is allowable for foreign investors to set up limited liability companies engaging in guarantee operating business in forms of wholly-owned enterprises or joint ventures founded with Chinese investors. The foreign investors shall have good credit, with necessary economic strength to set up guarantee companies, and the total net assets shall be no less than USD50mn in the previous year before the application; where the guarantee company is established in the form of joint venture, the Chinese investors shall have good credit, and the net assets of the investors shall be no less than RMB50mn in the previous year before the application.
Where there are more than two foreign investors (Chinese investors) applying for establishment of the guarantee company, at least one of the foreign investors who hold large shares shall in line with the above conditions.
(II) Basic conditions for setting up guarantee enterprises
1. Where registered capital shall be no less than USD10mn, all paid in monetary form;
2. Where there are senior management staffs with qualifications of guarantee agencies and qualified practitioners who are familiar with guiding business;
3. Where there are comprehensive organizational structures, internal management systems and risk control systems.
Ⅲ. Main business scope of guarantee enterprises
Provide guarantee, financing guarantee, performance guarantee and re-guarantee for loan, bill discount and financial leasing of small and medium-sized enterprises or individuals to financial institutions; provide guarantee for consumers to purchase durable consumer goods and micro-credit with consumer; provide investment and consulting services related to guarantee.
All the examination and approval departments shall declare in the reply:
(I) Guarantee companies shall not engage in financial business of deposit and loan as well as financial credit business;
(II) Guarantee companies shall strictly comply with relevant laws and regulations for anti-money laundering;
(III) Guarantee companies shall report and submit the business operating situation in the previous year to the approval departments before the end of March each year, including but not limited to: the number of annual external guarantee business, the profit situation, the guarantee performing situation, the guarantee obligated balance and the multiple of registered capital.
IV. Application materials
(I) Application report signed by investors, which shall include the background of foreign investors and their investment status in China, basic situation of the guarantee company to be set up, specific business direction, organization, internal management system and risk control system;
(II) Contracts (joint venture) and regulations signed by all the investment parties;
(III) Credit certificate of all the investors, registered certificate (copy), main qualification certification document of foreign investors and certification document of legal representative (copy);
(IV) Balance sheet of investors in the past three years which has been audited by law;
(V) Nomination letter of the directors of the board;
(VI) Name list, document of identification and detailed curriculum vitae of senior management staffs;
(VII)Enterprise name pre-verified notice issued by administrations of industry and commerce;
(VIII) Other documents required by approval agencies
V. Changes and establishment of branches of guarantee enterprises
The changes in guarantee companies such as increase of business scope, stock right transfer and increase (decrease) in registered capital shall be reported and approved by the original examination and approval authorities. The setting up of branches in other provinces and cities of guarantee companies shall be approved by the original examination and approval authorities. The relevant replies of the original examination and approval authorities in approving the establishment of branches shall be copied to commercial authorities, industry and commerce departments and banking supervision and management departments in the location of these branches. The increase of braches of guarantee companies shall be noted in the counterfoil of original certificates, and all the names of branches shall be noted in remark columns in the next renewal of certificates.
VI. Cooperate with China Banking Regulatory Commission and strengthen the supervision to guarantee enterprises
China Banking Regulatory Commission has been made clear as the supervision authority of financing and guarantee enterprises. The local banking regulatory departments and the banking regulatory departments at the same level shall strengthen the communication, timely report the new situation in approval and management, meanwhile sum up the experience, and provide the basis for promulgation of management laws and regulations in the future.