Foreign investment law in China defines an investment company as one organized for the purpose of foreign direct investment, either through 100% foreign funding or with joint venture financing, using the Limited Liability Company (LLC) structure. There are two options to achieve the establishment of an investment company. The first option requires foreign investors to have had assets totaling over $400 million USD at all times throughout the year preceding the filings, to have formed an entity in China with paid-in registered capital totaling over $10 million USD, and to have received approval for a minimum of three investment projects. The second option requires foreign investors to have formed at least ten entities in China for manufacturing or infrastructure, with paid-in registered capital exceeding $30 million USD. For the joint venture route, Chinese investors must have total assets worth over ¥ 100 million. Additionally, such an investment company must have at least $30 million USD in registered capital.

Further Reading

See our comprehensive resources on China’s Foreign Investment Law. and an overview of FDI regulation in our Foreign Investment Law FAQ.

Relevant Laws

Foreign Investment Act of China (& Administrative Regulations)
Rules for Forming Investment Companies

Translation Guide

See: 投资性公司