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Examination and approval on application for setting up units for artwork purchase and sale such as painting stores, gallery, and artwork companies, etc.
(06/01/2005)

Application formalities: (I) An application form unified made by Adminstration on Culture, Radio, Film and Television of Shanghai;
(II) Information and documents of legal representative or major person in charge(including copies of ID cards, of certificates on educational background) and certificates of competence of professional personnel;
(III)Notice on prior-approval on name of enterprise issued by administrative departments on industry and commerce or copies of business license of the applicant enterprise;
(IV) Certifications on assessment of capital issued by accountant firms;
(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) Relevant documents on artwork sources;
(VII) Regulations on operational management.
Transaction procedures:
(I) To accept application:
Personnel at the Center of application accepting is to examine application materials from applicants, producing written document on accepting the application or not on the spot, submitting the materials to office of Administration on Culture, Radio, Film and Television of Shanghai within 24 hours, who is to send the materials to the Market Department to do verifications work.
(II) 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 2 working days 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 3 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 the notice 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" 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 fourth 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.
<STRONG>Note </STRONG>
Units under direct control of Ministry of Culture or Sino-foreign invested or Sino-foreign contractural joint venture establishing their applied projects at Ministry of Commerce to apply to set up units for artwork operation can be reported to Ministry of Culture for examination and approval after examined by Administration on Culture, Radio, Film and Television of Shanghai.

The transaction is based on: "Methods on Administration of Artwork Operation" (Decree 8 from Ministry of Culture issued on November 25th, 1994)

Applicant qualifications: (I) Having name, institutional framework and constitution of the enterprise;
(II)Having professional personnel with corresponding vocational level, among whom, there should be at least 3 fulltime personnel at a painting store or gallery, and 8 fulltime personnel at a artwork company;
(III) Having fixed business scope, with the space of business ground covering an area of no less than 20m2, out of which, an exhibition hall with a space of no less than 40m2 must be equipped for a gallery;
(IV) Having fluid capital fit for its business scope, out of which, fluid capital for a painting store must be at least 100,000RMB, that for a gallery no less than 200,000RMB and that for an artwork company no less than 500,000RMB.