Registration conditions and procedures for domestic commercial factoring companies

Domestic commercial factoring company registration conditions and procedures 1、What is commercial factoring? Commercial factoring includes financing、Credit risk management、Financial solutions including accounts receivable management and collection services，It is a factoring contract signed between the factor and the supplier.。 At present, many small and medium-sized enterprises in China are stuck in the problem of broken capital chain due to difficulty in collecting receivables.，This is why commercial factoring companies are born。

In simple terms，That is, the company sells the debtor's bills to a commercial factoring company，The factoring company provided funds to tide it over.，The debtor's debt repayment target has changed at this time，From the original enterprise to a commercial factoring company，also，Commercial factoring companies also offer production、Procurement etc.，In order to avoid the problem of corporate capital turnover during the period from the occurrence of accounts receivable to the collection of accounts receivable。

two、Registration conditions for domestic-funded commercial factoring companies The conditions that should be met to establish a domestic-funded commercial factoring company include the following:：

1. The main investor of a commercial factoring company should be a corporate legal person or other social and economic organization familiar with the relevant industry.，Investors should have the asset scale and financial strength to carry out commercial factoring business；
2. Domestic commercial factoring companies should be established in the form of limited liability companies，Registered capital shall not be less than RMB 50 million，and should be paid in full in one lump sum；
3. When setting up a commercial factoring company，There should be two senior managers with more than three years of management experience in the financial field，And it must have no bad record。
4. Commercial factoring companies should have a complete internal control system，Including but not limited to business process operations、Monitoring and other systems。

three、Materials required to register a domestic commercial factoring company

1. Domestic commercial factoring company registration application form；
2. Investor asset certificate；
3. Company legal person identity certificate (copy)；
4. Bank credit certificates of each investor、Registration certificate (copy)；
5. Qualification certificates of senior management personnel；
6. Notice of pre-approval of industrial enterprise name； Four、Domestic commercial factoring company

Registration process

Investors apply to the Industrial and Commercial Branch of the Pilot Free Trade Zone，Separation of business and industry in the Pilot Free Trade Zone after consulting the Administrative Committee of the Pilot Free Trade Zone for its opinions，Submit relevant application materials，After the materials are reviewed,，The Free Trade Zone Experimental Zone Management Committee will issue a reply and approval certificate.，Then go through the procedures according to the relevant acceptance procedures.。

This article is written based on the actual experience of registering a domestic commercial factoring company.

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