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Examination on setup of film production units
(06/01/2005)

Application formalities: (I) A written application(including name, residence, economic nature, fund sources and amount of the applicant unit; name, residence and economic nature of sponsor, etc.);
(II) Enterprise constitution;
(III) Inquiry list for names issued by administrative department of industry and commerce;
(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;
(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) Certificates on name, model and amount of equipment essential for making films;
(VIII) Copies of business licenses of legal persons of all investors.
If applicants are domestic film production units, they have to provide copies of "Permit on Film Making(sof)" and of "Permit on Showing of Films" for two films they have invested for production in addition to the above mentioned.
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 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 the examination and approval work within 5 working days after getting opinions from preliminary examination;
3. Leader in charge of the work is to make decision on whether to approve the application or not within 5 working days;
4. Office of the Administration is to send the decision to department on radio, film and television, and personnel at the department is to report materials of those getting approval on setting up film production units to the State Administration of Radio, Film and Television for examination and approval. Those not getting the approval are to be informed of the reasons in written form by department on radio, film and television, which is to be sent to the applicants by Center of application accepting;
5. Person at department on radio, film and television handling the case is to notify applicants within 5 working days after getting official reply from the State Administration of Radio, Film and Television.
<STRONG>Notes</STRONG>
(I) "Permit on Film Making" is issued by State Administration of Radio, Film and Television.
(II) "Permit on Film Making" is to be verified once in every two years, and the specific methods are to be done in accordance with notification from 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) "Provisional Regulations on Accession System of 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 a definite business scope;
(II) Having an institutional framework and professional personnel necessary for its business scope;
(III) Having funds, ground and equipment necessary for its business scope;
Applicants for setup of film production units with joint investment and joint operation(not including foreign capital) should also have a registered capital of no less than 1 million RMB in addition to the above mentioned conditions;
Applicants for setup of film production units with Sino-foreign joint investment and joint operation should also have a registered capital of no less than 5 million RMB, with foreign capital in the registered capital no more than 49%, in addition to the above mentioned conditions;
For domestic film making units(not including foreign-invested ones) to independently set up film making units, they should also have a registered capital of no less than 1 million RMB, and having invested in making more than 2 (including 2) films in the form of receiving a "Permit on Film Making(sof)".