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Briefly describe the basic principles that should be followed in setting up venture capital funds.
The fund company is established in accordance with the company law. According to Articles 2 and 3 of China's Company Law, a company is an enterprise legal person in the form of a limited liability company or a joint stock limited company established in accordance with the Company Law.

Article 6 of China's "Company Law" stipulates in principle that those who meet the conditions for establishment shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority.

Article 93 of the Company Law stipulates that if a joint stock limited company is established by offering shares to the public, it shall also submit the approval documents of the State Council Securities Regulatory Authority to the company registration authority.

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