What kind of fund-raising is legal, and the methods and procedures of legal fund-raising

I. Ways and procedures of legal fund-raising.

Legitimate fund-raising means that companies, enterprises, organizations and individuals raise the required funds in the capital market in accordance with the conditions and procedures stipulated by relevant laws and regulations through public offering of securities or financial leasing, joint ventures, joint ventures and enterprise fund-raising. For example, a joint stock limited company or a limited liability company issues shares or bonds to raise funds for the purpose of establishment or production and operation.

2. According to the Notice on Banning Illegal Financial Institutions and Illegal Financial Business Activities (Yinfa [1999] No.41):

Illegal fund-raising refers to the behavior that a unit or individual raises funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other creditor's rights certificates without the approval of the relevant departments in accordance with legal procedures, and promises to repay the principal and interest to investors in cash, in kind or in other ways within a certain period of time.

Extended data:

Sentencing standards for the crime of illegal fund-raising;

Article 192 of the Criminal Law, whoever illegally raises funds by fraudulent means for the purpose of illegal possession, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan;

If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or confiscated property.

Article 199 Whoever commits the crimes specified in Articles 192, 194 and 195 of this section, if the amount is especially huge and especially heavy losses are caused to the interests of the state and the people, shall be sentenced to life imprisonment or death, and his property shall also be confiscated.

Article 200 Where a unit commits the crimes specified in Articles 192, 94 and 195 of this section, it shall be fined, and the persons who are directly in charge and other persons who are directly responsible shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment.

Reference: Baidu Encyclopedia-Legal Fund Raising