Application formalities: (I) Application materials:
1. The "Application form" unified made by Administration on Culture, Radio, Film and Television (including name, address and applied items, etc. of the applicant unit);
2. Information and identity documents of legal representative or major person in charge as well as managerial staff at its headquarter;
3. Certification on assessment of capital issued by accountant firm;
4. Documents on certificate of ownership of its headquarters and business ground or on lease contract and certificate of ownership of the renter;
5. Notice on prior approval on enterprise name or business license and copies of business license of the enterprise;
6. Plan on establishment preparation meeting norm on chain-store operation;
7. Institutional framework and constitution of the operation unit;
8. Documents on departments for distribution work, distribution methods and system on distribution management of the chain-store operation unit;
9. A description on the fact that major initiator has been engaged in wholesale business of audiovisual products for more than 2 years.
If nationwide chain stores for audiovisual product authorized by Ministry of Culture are to set up their branches in Shanghai, they should also provide copies of documents of approval from Ministry of Culture in addition to the materials from Item 1 to 7 mentioned above. 
(II) Materials needed in applying for "Permit on Audiovisual Product Operation(chain-store operation)":
1. .Documents of approval on preparing to establish the chain stores issued by Administration on culture, Radio, Film and Television of Shanghai;
2. Certificate of property rights or housing leasing contract for more than 10 chain stores, each covering a space of over 40m2;
3. Information on managerial staff for more than 10 chain stores;

Transaction procedures:
(I) Examination and approval procedures and its time limit on the application for establishment preparation of chain-store audiovisual product operators:
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, 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. 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 within 3 working days 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 5 working days after getting opinion from director (for application for setting up nationwide chain-store audiovisual product operation units, leader of the Administration in charge of the work is to verify opinion from examination and approval work before president of the Administration make a decision on whether to approve the application or not, signing for instructions and reporting to Ministry of Culture);
(5) Office of the Administration is to send the decision to Market Department, and personnel at the Department handling the case is to produce a document of approval of a written notice on not approving the application within 1 working day; applicants getting approval or not are to be given an official reply on approval or written notice by Market Department, and the center of accepting the application is to send the reply of written notice to applicants.

3. To issue official reply or written notice:
The Center of application accepting is to send the document of approval or letter of notification to applicants within 5 working days from the day when they receive notification from Market Department.
　　(II) Examination and approval procedures and its time limit on the application for a "Permit on Audiovisual Product Operation (in chain-store operation)":
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, 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. 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 from the examination and approval within 3 working days 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 5 working days after getting opinion from director ;
(5) Office of the Administration is to send the decision to Market Department, and personnel at the Department handling the case is to notify the Center of application accepting about decision within 1 working day: those being approved are to be issued a "Permit on Audiovisual Product Operation" by the center and those not approved are to be issued letter of notification by Market Department and sent the letter by Center of application accepting.

3. To issue the Permit:
The Center of application accepting is to issue the "Permit on Audiovisual Product Operation" to applicants within 5 working days after getting notification from Market Department.
Reviewing work:
(I) Operation qualifications of the owner of "Permit on Audiovisual Product Operation" are to be reviewed between January 1st and February 28th of every even number year.
(II) Administration on Culture, Radio, Film and Television of Shanghai is to issue notice on reviewing work at 1 month in advance, publicizing requirements on the reviewing work;
(III) By following the notified requirements on reviewing work, Permit holders submit report on reviewing, relevant materials and unified review form to the Center of application accepting;
(IV) The reviewing procedures are done by following examination and approval procedures;
(V) Administration on Culture, Radio, Film and Television of Shanghai is to finish the reviewing work within 10 working days from the day when they receive materials for review.

The transaction is based on: (I) "Regulations on Administration of Audiovisual Products" (Decree 341 from the State Council issued on December 25th, 2001);
(II)"Regulations on Administration of Audiovisual Products of Shanghai" (passed on 36th meeting of 10th Shanghai People's Congress on May 28th, 1997);
(III) "Methods of Administration on Wholesale, Retail and Rent of Audiovisual Products" (Decree22 from Ministry of Culture issued on March 28th, 2002)

Applicant qualifications: (I) Having name and constitution of units for chain-store audiovisual product operation;
(II) Having fixed business scope;
(III) For those having more than 10 audiovisual product chain stores, each of the store should cover a space of no smaller than 40m2;
(IV) Major initiator has been engaged in wholesale business of audiovisual products for more than 2 years, and has good operation performance, without any criminal records two years prior to the application;
(V) Having a registered capital of no less than 5 million RMB, among which, those for nationwide chain-store operation should have a registered capital of no less than 30million RMB;
(VI) Having an institutional framework fit for its business scope and more than 15 full time staff;
(VII) Having the capacity of providing operation instruction to its stores and of distributing audiovisual products;
(VIII) Having a perfect chain-store management norm;
(IX) Management system in Internet connection is practiced for its headquarter and all stores;
(X) Meeting planning on total number and structure of audiovisual product operation units of Shanghai.