Application formalities: (I) Materials for application of establishment preparation:
1. A written application;
2. Notice on prior-approval on enterprise name or business license and constitution of the enterprise;
3. Information and certificates of legal representatives or major person in charge (including copies of their ID cards);
4. Certification on assessment of capital issued by accountant firm(excepting those with a business license);
5. Certificate of property rights or letter of intent on housing lease of the business ground;
6. Construction plan of the business ground;
7. "Declaration Form on Publicizing Public Gathering Places for Culture Business of Shanghai";
8. "Registration Form on Examination of Business Ground for Profit-making Internet Services of Shanghai".
(II) Materials needed in applying for final examination:
1. Document of approval on establishment preparation issued by culture administrative departments and documents of approval from public security organs;
2. Written advice on acceptance inspection of fire control in the construction project or written advice on inspection of fire safety;
3. Certificate of property rights or house-leasing contract of the business ground being put on record and certificate of housing ownership of the house renter;
4. Distribution plan on photographing and vedio equipments.
Transaction procedures:
(I) Examination and approval procedures on application for establishment preparation:
1. To accept the application:
(1) To be accepted by culture administrative bureaus on district or county level, who should produce opinion on examination wrok within 10 working days from the day when the applicaiton is accepted, and then report to the Center of application accepting of Administration on Culture, Radio, Film and Television of Shanghai;
(2) 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 State Administration of Radio, Film and Television within 24 hours, who is to send the materials to the Market Department to do verification work..
2. Examination and approval work:
(1) Personnel handling the case at Market Department 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, Market department 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 the applicants within 5 working days to get ready the rest materials. 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 1working day after getting opinions from preliminary examination, then producing opinion from the reviewing work;
(3) Director is to produce an opinion from the examination and approval within 1 working day after getting opinion from reviewing work from deputy director;
(4) Leader of the Administration in charge of the job is to make a decision on whether to approve the application or not within 4 working days after getting opinion from director;
(5) Leader of the Administration in charge of the job is to send the decision to Market Department, and personnel at the Market Department is to notify the center of accepting applilcation about decision within 1 working day: those being approved or not are to be issued a document of approval or a notice by the Market Department and sent by the center.

(III)To inform applicants:
The Center of application accepting is to send a document of approval to applicants or send the notice to applicants within 3 working days after getting notification from Market Department.
(II)Procedures on application for final examination and its time limit:
1. To accept the application:
(1) To be accepted by culture administrative bureaus on district or county level, who should produce opinion on examination work within 7 working days from the day when the applicaiton is accepted, and then report to the Center of application accepting of Administration on Culture, Radio, Film and Television of Shanghai;
(2) Personnel at the Center of application accepting is to examine application materials from applicants, producing written document on accepting or not accepting the application on the spot, then submitting the materials to office of State Administration of Radio, Film and Television within 24 hours, who is to send the materials to the Market Department to do verifications work. 

2. Examination and approval work:
(1) Personnel handling the case at Market Department 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, Market department 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 the applicants within 5 working days to get ready the rest materials. 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 1working day after getting opinions from preliminary examination, then producing opinion from the reviewing work;
(3) Director is to make a decision on whether to approve the application or not within 2 working days after getting opinion from reviewing work from deputy director;
(4) Personnel at the Market Department is to notify the center of accepting applilcation about the decision within 1 working day: those being approved are to be issued a "Permit on Internet Culture Operation" by the center and those not approved are to be issued a notice by Market Department and sent by the Center.

(III)To issue the Permit (or notify applicants):
The Center of application accepting is to issue the "Permit on Internet Culture Operation"(or a notice) to applicants within 5 working days after getting notification from Market Department.

<STRONG>annual inspection：</STRONG>
(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 4th quarter of each year and notify units at 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 those for examination and approval;
(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: (I) "Regulations on Administration of Profit-making Internet Service Places" (Decree 363 from the State Coucil issued on September 29th, 2002);
(II) "Technical Norm on Computer Operation and Management System of Profit-making Internet Service Places<WH/T 16-2002> " (issued by Ministry of Culture on November 19th, 2002, B.S.F.[2002] No.47);
(III) "Opinions on Implementing Re-Examination and Registration Work for Special Campaign to Fight Crime and Social Evils at Profit-making Internet Service Places of Shanghai" issued by Administration on Culture, Radio, Film and Television of Shanghai, Shanghai Public Security Bureau, Communication Supervisory Bureau of Shanghai and Administration on Industry and Commerce of Shanghai (issued on July 24th, 2002, H.W.G.Y.S.[2002] NO.890);
(IV) "Provisional Methods of Examining and Publicizing Public Gathering Places for Culture Business" (issued on July 23rd, 2003, W.S.F.[2003] No.31);

Applicant qualifications: (I) Having name, residence, institutional framework and consitution of the enterprise;
(II) Having funds fit for its business operations;
(III)Having a userable floor space of no less than 150m2, which is a complete business ground, with a storey height being no lower than 2.7m and the space of a single computer no less than 2.5m2;
(IV)Business ground meets conditions of fire safety regulated by the country, being equipped with more than two escape doors;
(IV) Having at least 60 computers with complete auxiliary facility, which can be used for going online at the same time, with a speed of no lower than 1 mega for every 60 computers;
(V) Having a fixed network address, with its client machines inside being connected with Internet through agent server in the manner of local area network;
(VI) Having a sound and perfect system on management of information network safety and safety tenique measures;
(VII) Being installed with software of computer operational management;
(VIII) Having computers for the special use of information download service for customers;
(IX) Having photographing and vedio equipments to do supervision work on the business ground;
(X) Having personnel for safety management, for operational management and professional personnel, among whom, there should be more than 3 personnel for safety management;
(XI) Having such system on information network safety management, on registration of customers of going online and of tour inspection on business ground;
(XII) Being located in non-residential apartments (districts) with a distance of over 200m from middle and primary schools;
(XIII) Meeting the requirements on total amount and layout of profit-making Internet service units prescribed by Ministry of Culture and Administration on Culture, Radio, Film and Television of Shanghai.