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Examination and approval on setup of film distribution units
(06/01/2005)

Application formalities: (I) A written application(including name, residence, economic nature and business scope, etc. of the applicant unit);
(II) Enterprise constitution;
(III) Inquiry list for names issued by administrative department of industry and commerce, or copies of business license of the corporate entity, or copies of legal person code for non-profit-making units;
(IV) Documents on name, residence and identity of the legal representative and documents on name, educational background, professional title and engagement contract, etc. of the professional personnel in the unit;
(V)Certification on assessment of capital issued by accountant firm;
(V) Documents on certificate of ownership of the business ground or on lease contract put on record and certificate of ownership of the renter;
(VI) Certificates on the applicant acting as an agent to distribute films or TV Series.
 
Transaction procedures:
(I) 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. 
(II) Examination and approval 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. Director is to produce opinions on examination and approval within 5 working days after getting opinions from preliminary examination;
3. Leader in charge of the work in the Administration is to make decision on whether to approve the application or not within 5 working days;
4. The office of the Administration is to send the decision to department on radio, film and television, and personnel at the department is to notify the Center of application accepting within 1 working day. Those getting approval are to be issued "Permit on Film Distribution"; those not getting the approval are to be informed of the reasons in written form.

กกกก(III) To issue 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 5 working days from the day when they receive notification from department on radio, film and television.
กกกก<STRONG>Annual inspection</STRONG>
(I) Annual inspection work is to be done on "Permit on Film Distribution".
(II) Administration on Culture, Radio, Film and Television of Shanghai is to do annual inspection at the first quarter of each year, and hand out notification on annual inspection at one month in advance, publicizing requirements on annual inspection;
(III) Following the requirements on annual inspection, units for movie distribution submit report on annual inspection, relevant materials and form on annual inspection to the Center of application accepting;
(IV) Annual inspection procedures are gone through according to examination and approval procedures;
(V) Department on radio, film and television is to finish annual inspection work within 15 working days from the deadline of getting the notice for annual inspection.
<STRONG>Notes</STRONG>
Applicants for film distribution across different provinces are to file the application to the State Administration of Radio, Film and Television.

The transaction is based on: (I) "Regulations on Film Administration" (Decree 342 from the State Council issued on December 25th, 2001)
(II)"Methods on Administration of Film Distribution of Shanghai" (Decree 47 from Shanghai Municipal People's Government on July 21st, 1997)
(III) "Provisional Regulations on Accession System on Qualifications for Making, Distributing and Showing Films" (Decree 20 from the State Administration of Radio, Film and Television issued on October 29th, 2003)

Applicant qualifications: (I) having name and constitution of the unit;
(II) Having definite business scope;
(III)Having an institutional framework and professional personnel necessary for its business scope;
(IV)Having funds(with a registered capital of no less than 500,000RMB), ground and equipment necessary for business scope;
(V) Having acted as an agent for film producer units to distribute 2 films, and acted as an agent for TV series producer units to distribute 2 TV series.