First, the characteristics of the trust system: similar to limited partnership, it also has tax-free status; However, the funds need to be put in place in one step, and the use efficiency is low; It involves trust intermediary, which increases the operating cost of the fund.

Second, the characteristics of corporate funds: need to pay corporate income tax; Shares can be listed; Investment income can be retained to continue investment; Investors other than corporate income tax need to pay personal income tax, which involves double taxation.

Three. Characteristics of limited partnership: General partner (GP) and limited partner (LP) form a limited partnership, in which private equity investment company, as GP, initiates the establishment of a limited partnership, and subscribes a small part of the capital contribution, while LP subscribes most of the fund contribution. GP assumes unlimited liability, is responsible for the investment, operation and management of the fund, and draws a certain percentage from the total fund amount as the fund management fee every year; LP assumes limited liability, does not participate in company management, shares partnership income, and enjoys the right to know and consult.

As the largest market-oriented private equity parent fund in China, Gefei Assets has many years of experience in this field, and you can learn more from them.