The conditions for private equity funds are: raising from qualified investors, with a total of no more than 200 qualified investors. Private placement funds are managed by fund custodians, and fund contracts are formulated and signed. After the fund is raised, the fund manager shall file with the fund industry association.

Legal objectivity:

What is the form of enterprise private equity fund? 1. Subject qualification: an enterprise legal person with independent legal person qualification. You can apply for a loan from a bank or provide a guarantee for the invested enterprise, and the shareholders bear the investment losses to the extent of their capital contribution, which has a bankruptcy risk isolation mechanism. 2. Advantages: capital integration, equity transfer and personnel changes will not have a direct impact on the fund, and the stability is high; The legal system and organizational structure are perfect, effectively protecting the interests of investors. 3. Disadvantages: The fund manager can control the management right of the company as the entrusted investment consultant, but the highest authority of the company is the shareholders' meeting, and the shareholders as the fund share holders can still control the decision, thus affecting the manager's decision, which is not conducive to the effective investment decision of the fund. In addition, the operation and management of the company's funds should follow the company law, which has more clear and specific constraints on the company, thus reducing the flexibility of the company's independent management. The company law has certain restrictions on the company's foreign investment, which will limit the funds, prolong the decision-making time and reduce the fund's rate of return. 4. Taxation: The taxation problem can be described as a major shortcoming of the company's investment funds-repeated taxation. One is to pay 25% corporate income tax for the company's investment income, and the other is to pay 20% personal income tax for the fund share holders who are shareholders based on the company's profits. The operating cost of capital increases, and the profit margin of investors decreases. It should be noted here that venture capital funds will have certain tax incentives because of the support of the national government.