Application formalities: (I) A written application;
(II) Constitution of the applicant enterprise;
(III) Notarial deed on its legal representative and executives being free of criminal records;
(IV) Post Certificate of legal representative and person in charge;
(V) Post certificate of sound men;
(VI) Construction plan of the business ground;
(VII) Written advice on acceptance inspection of fire control of the construction project or written advice on inspection of fire safety of the project;
(VIII) Notice on prior-approval of name of the enterprise issued by administrative department on industry and commerce or copies of its business license;
(IX) Documents on certificate of ownership of the business ground or on housing lease contract put on record and certificate of ownership of the renter;
(X) 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 music teahouses or music restaurants at star-grade hotels can file in the application to Administration on Culture, Radio, Film and Television.
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 6 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 3 working days after getting opinions from preliminary examination, then producing opinion from 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 application accepting 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  
(II) Applicants to set up music teahouses or music restaurants 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:
(2) To be accepted by culture administrative bureaus on district or county level, who should produce opinion on examination work within 10 working days from the day when the application 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 the application or not 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 examination work should be done within 3 working days), who is to send the materials to the Market Department to do verifications work.

4. Examination and approval work:
(1) Personnel handling the case at Market Department is to finish preliminary examination on the application materials within 3 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 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 application accepting 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.

5. 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:
(V) Annual inspection is done on "Permit on Internet Culture Operation" once a year;
(VI) 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;
(VII) 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;
(VIII) 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);
(XI) "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 40m2;
(V) Being equipped with fixed stage;
(VI) Having complete and efficient fire devices, and distinct direction boards are set at entrances and exits with the doors opening outward; the house structure is safe and reasonable;
(VII) For those whose business ground covers a space of over 120m2, they should be equipped with over 2 escapes;
(VIII) Having necessary lighting equipment and emergency measures for power cutoff;
(IX) Equipments for ventilation and hygiene, etc should meet specifications of hygienic administrative departments of Shanghai;
(X) Having necessary management system.