# Policy and regulatory basis

Article 2 of the Administrative Measures for Automobile Finance Companies

For the purpose of these Measures, "auto financing companies" means non-banking financial institutions formed with the approval of the China Banking Regulatory Commission (hereinafter referred to as the "CBRC") to provide financial services to auto buyers and sellers within the territory of China.

Article 3 of the Measures for the Administration of Automobile Finance Companies

The name of the car finance company should be marked with the words "car finance."
Without the approval of the CBRC, no entity or individual may engage in the auto financing business, and may not use the words "auto financing" and "auto credit" in the name of the institution.

Article 35 of the Measures for the Implementation of Administrative Licensing Matters for Non-Bank Financial Institutions of the CBRC

For the opening of a financial leasing company, the promoter with the largest proportion of capital contribution shall, as the applicant, submit an application to the provincial dispatched office at the place to be established, and the provincial dispatched office shall accept, examine and decide.
The local office at the provincial level shall, within 2 months from the date of acceptance, make a written decision on approval or disapproval, and submit a copy to the CBRC.

Article 36 of the Measures for the Implementation of Administrative Licensing Matters for Non-Bank Financial Institutions of the CBRC

The applicant shall, after receiving the approval document for business opening and obtaining the financial license, go through the industrial and commercial registration and obtain the business license. A financial leasing company shall open for business within six months from the date of obtaining a business license.
If it is unable to start business within the time limit, it shall, one month before the expiration of the time limit for business opening, submit a report on the extension of business opening to the local office at the provincial level. Business opening shall not be postponed more than once, and the extension period shall not exceed 3 months.
If the business operation is not started within the time limit prescribed in the preceding paragraph, the approval document for business operation shall become invalid, the decision-making organ shall cancel the business operation license, the issuing organ shall withdraw the financial operation license, and make an announcement.

Article 46 of the Measures for the Implementation of Administrative Licensing Matters for Non-Bank Financial Institutions of the CBRC

For the opening of an auto finance company, the major contributor shall, as the applicant, submit an application to the provincial dispatched office at the place to be established, and the provincial dispatched office shall accept, examine and decide.
The local office at the provincial level shall, within 2 months from the date of acceptance, make a written decision on approval or disapproval, and submit a copy to the CBRC.

Article 47 of the Measures for the Implementation of Administrative Licensing Matters for Non-Bank Financial Institutions of the CBRC

The applicant shall, after receiving the approval document for business opening and obtaining the financial license, go through the industrial and commercial registration and obtain the business license. An auto financing company shall open for business within 6 months from the date of obtaining a business license.
If it is unable to start business within the time limit, it shall, one month before the expiration of the time limit for business opening, submit a report on the extension of business opening to the local office at the provincial level. Business opening shall not be postponed more than once, and the extension period shall not exceed 3 months.
If the business operation is not started within the time limit prescribed in the preceding paragraph, the approval document for business operation shall become invalid, the decision-making organ shall cancel the business operation license, the issuing organ shall withdraw the financial operation license, and make an announcement.

Article 3 of the Measures for the Administration of Financial Licenses

The financial license shall apply to the financial institutions supervised by the CBRC and approved to engage in financial business.
Financial institutions, including policy banks, Commercial banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives, village banks, loan companies, rural mutual cooperatives, financial asset management companies, trust companies, enterprise group finance companies, financial leasing companies, auto finance companies, currency brokerage companies, etc.

Administrative Measures for Financial Leasing Companies (2014) Article 2 For the purpose of these Measures, the term "financial leasing company" means a non-bank financial institution with the approval of the CBRC that mainly engages in financial leasing business. The name of a financial leasing company shall be marked with the words "financial leasing." Without the approval of the CBRC, no entity may use the words "financial leasing" in its name.

# Examples of Qualifications

The Financial License: