Application formalities: (I) A written application;
(II) Documents on corporate capacity of Chinese side in the joint operation, documents on right to use the land for cinema, and documents on credit issued by bank, report on appraisal of state-owned assets (excluding from cash investment) confirmed by departments on state-owned assets management above provincial level;
(III) Documents on qualifications and bank credit of foreign side in the joint operation, documents on its financial situation issued by accountant firm;
(IV)Notification on prior-approval on name of the foreign-invested cinema issued by administrative department of industry and commerce;
(V) Contracts on joint investment and joint operation, as well as enterprise constitution;
(VI) Documents on certificate of ownership of the business ground or on lease contract put on record and certificate of ownership of the renter;
(VII) Plan and sectional drawing of fixed place for showing movie;
(VIII) Detailed list of equipment and devices for showing movie;
(IX) Opinions from technical testing and acceptance inspection from the units showing movies.   
Transaction procedures:
(II) To accept the application:
Center of application accepting check and verify application materials, then producing written document on accepting or not accepting the application on the spot, submitting the materials to office of the Administration of Radio, Film and Television of Shanghai within 24 hours, who is to send the materials to the department on radio, film and television to do verifications work.
(III) Verification work:
1. Personnel accepting the materials at department on radio, film and television is to finish preliminary examination on the application materials within 5 working days, producing an opinion on whether to approve or not(if materials are not complete or not conform  to legal form, the department on radio, film and television is to notify Center of  application accepting within 3 working days from the day when they receive the materials, and the center is to inform applicants of contents to be supplemented within 5 working days from the day when they accept the application. During applicants supplement their application materials, examination and approval procedures are paused);
2. Deputy director at the branch office is to make a decision within 5 working days after getting opinion from preliminary examination;
3. Leader in charge of the work at the Administration is to make decision on whether to approve the application or not within 5 working days;
(III)The office of the Administration is to send the decision from verification work to department on radio, film and television, who is to send the official communication to Commission of Foreign Economic Relations & Trade of Shanghai, reporting to the State Administration of Radio, Film and Television for examination and approval.
(IV) Person receiving the decision at the State Administration on Radio, Film and Television is to inform the Center of application accepting within 1 working day after getting approved documents from Ministry of Commerce, the State Administration on Radio, Film and Television and Ministry of Culture. Those getting the approval are to be issued "Permit on Operating Movie Showing"; and those not getting the approval are to be informed of reasons in written form. 

(V)To issue the Permit (or inform applicants of reasons for not approving their application)
The Center of application accepting is to send the Permit or written reasons to applicants within 4 working days from the day when they receive notification from department on radio, film and television.

　　<STRONG>Note</STRONG>
procedures and methods for annual inspection on foreign-invested cinemas are the same to those on units of showing movies. 

The transaction is based on: (I) "Regulations on Film Administration" (Decree 342 from the State Council issued on December 25th, 2001);
(II) "Provinsional Regulations on Foreign-invested Cinemas" (Decree 21 from the State Admininstration of Radio, Film and Televisions, Ministry of Commerce and Ministry of Culture issued on September 28th, 2003)
(III) "Methods of Administration on Distribution and Showing of Movies of Shanghai" (Decree 47 from Shanghai Municipal People's Government issued on July 21st, 1997).

Applicant qualifications: (I) Meeting layout and planning on cultural facilities of Shanghai;
(II) Having a registered capital of no less than 6 million RMB, out of which, foreign investment is no more than 75%;
(III) Having fixed place for business(or showing movies);
(IV) Term of joint investment or joint operation is no more than 30 years.