Application formalities: (I) A written application;
(II) Constitution of the applicant enterprise;
(III) Notarial deed on its legal representative and executives are free of criminal records;
(IV)Post Certificate of legal representative and person in charge;
(V)Construction plan of the business ground;
(VI)Written advice on acceptance inspection of fire control of the construction project or written advice on inspection of fire safety of the project;
(VII) Notice on prior-approval of name of the enterprise issued by administrative department on industry and commerce or copies of its business license;
(VIII) Documents on certificate of ownership of the business ground or on lease contract put on record and certificate of ownership of the renter;
(IX) Model, pictures of game machines and type matter on how to operate on the machines;
(X) Catalogue of trophy;
(XI) Constitution of the club and VIP cards are also needed for those in which club membership system is practiced.
Transaction procedures:
(I) Applicants to set up game rooms at star-grade hotels file in the application to Administration on Culture, Radio, Film and Television of Shanghai.
1. To accept the 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 of Culture, Radio, Film and Television of Shanghai within 24 hours(for inspection work on field, the time should be within 7 working days),  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 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 reviewing work;
(3) Director is to produce an opinion from the examination and approval work within 2 working days after getting opinion from reviewing work from deputy director;
(4) Leader at the Administration in charge of the work is to make a decision on whether to approve the application or not within 3 working days after getting opinion from the director;
(5) Office of the Administration is to send the decision to Market Department, and personnel at the Market Department is to notify the center of accepting applilcation about decision from examination and approval work within 1 working day: those being approved are to be issued a "Permit on Culture Operation" by the center and those not approved are to be issued a notice by Market Department and sent the notice by Center of application accepting.

3. To issue the Permit (or to inform):
Center of application accepting is to issue "Permit on Culture Operation" to applicants within 3 working days from the day when they get notification from Market Department.
　　(II) Applicants to set up game rooms at other places can file in the application to the local administrative department on culture on district or county level.
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) 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, submitting the materials to office of State Administration of Radio, Film and Television within 24 hours(for inspection work on field, the time should be within 3 working days), 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 2 working days, producing an opinion on whether to approve or not(if materials are not complete or not conform 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 1 working day after getting opinions from preliminary examination, then producing opinion from reviewing work;
(3) Director is to produce an opinion from the examination and approval work within 1 working day after getting opinion from reviewing work from deputy director;
(4) Leader at the Administration in charge of the work is to make a decision on whether to approve the application or not within 2 working days after getting opinion from the director;
(5) Office of the Administration is to send the decision to Market Department, and personnel at the Market Department is to notify the center of accepting applilcation about decision from examination and approval work within 1 working day: those being approved are to be issued a "Permit on 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

3. To issue the Permit (or to inform):
Center of application accepting is to issue "Permit on Culture Operation" to applicants within 5 working days from the day when they get notification from Market Department
Annual inspection
(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.

The Transaction is based on: (I) "Regulations on Administration of Recreation Places" (Decree 261 from the State Council issued on March 26th, 1999);
(II) "Regulations on Administration of Culture and Recreation Market of Shanghai" (passed at 22nd meeting of 10th Shanghai People's Congress on October 27th, 1995);
(III) "Detailed Rules on Implementing Regulations on Administration of Culture and Recreation Market of Shanghai" (issued on August 16th, 1996, H.F.F. ([1996] No.41).

Applicant qualifications: (I) Having a corporate capacity;
(II)Its legal representative, person in charge and relevant personnel have post certificates issued by administrative department on culture of Shanghai;
(III) Having fixed business ground;
(IV) Business ground covers a space of over 500m2;
(V) Passages in the field are more than 2m in width;
(VI) Machine models conform to relevant regulations of the state;
(VII) Amount of prize-winning game machines in the field must not exceed 50% of the total number, and that of simulation game machine must not exceed 20% of the total number;
(VIII) Having complete and efficient fire devices, and distinct direction boards are set at entrances and exits; the house structure is safe and reasonable; those whose indoor business ground covers an area of more than 120m2 should be equipped with over 2 escapes, with their doors opening outward;
(IX) Having necessary lighting equipment and emergency measures for power shutoff;
(X) Equipments for ventilation and hygiene, etc should meet specifications of hygienic administrative departments of Shanghai;
(XI) Having essential management system;
(XII) Being over 200m away from middle or primary school.