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Examination and approval on application for setup of profit-making Internet culture units
(06/01/2005)

Application formalities: (I) "Application form" unified made by Ministry of Culture;
(II) Constitution meeting prescribed contents;
(III) Information and documents of legal representative or major person in charge(including copies of ID cards, of certificates on educational background or of certificates on professional title) and certificates of competence of professional personnel;
(IV)Notifications on prior-approval of enterprise name or its business license and its copies;
(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) Feasibility report on business development (including introduction and institutional framework of the applicant unit, applied projects and corresponding technical plan for operating management, plan on business development, market analysis, project contents and plan for fee collection of the applicant unit).

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. Deputy director in charge of the work is to do reviewing work within 2 working days after getting opinions from preliminary examination, then producing opinion from the reviewing work;
3. Director is to produce an opinion on examination and approval within 3 working days after getting opinion from reviewing work from deputy director;
4. Leader in charge of the work at the Administration is to make a decision within 5 working days, and submit the report to Ministry of Culture;
5. Office of the Administration is to send official reply from Ministry of Culture to Market Department.
(III) To issue a Permit:
Ministry of Culture is to issue a "Permit on Internet Culture Operation" to applicant units.
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(I) Annual inspection is done on "Permit on Internet Culture Operation" once a year;
(II) Administration on Culture, Radio, Film and Television of Shanghai is to do verification work on the Permit at fourth quarter of each year and notify units in 1 month in advance, publicizing requirements on annual inspection;
(III) By following the notified requirements on annual inspection, Permit holders submit report on annual inspection, relevant materials and unified annual inspection form to administrative departments on culture;
(IV) Annual inspection procedures are done by following examination and approval procedures;
(V) Administration on Culture, Radio, Film and Television of Shanghai is to finish annual inspection work within 10 working days from the day when they receive materials for annual inspection.

The transaction is based on: "Provisional Regulations on Administration of Internet Culture Services" (Decree 27 from Ministry of Culture issued on May 10th, 2003)

Applicant qualifications: (I) Having name, residence, institutional framework and constitution of the applicant unit;
(II) Having a definite business scope for Internet cultural activities;
(III)Having a registered capital of more than 1 million RMB;
(IV) Having at least 8 specialized technical personnel, including editorial staff with a professional title above elementary rank (including elementary rank), and network managers with a professional title above elementary rank(including elementary rank) or those with an educational background above higher education in computer related field (including higher education), etc.;
(V) Having funds, equipment and working place essential for Internet cultural activities and corresponding technical measures for operating management.