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Application for setup of foreign-invested cinema Transaction department: Market Department of Administration on Culture, Radio, Film and Television of Shanghai
(06/01/2005)

Application formalities: 1. A written application;
2. For Chinese side in the joint operation, there should be documents on corporate capacity of, documents on right to use the land for cinema, and documents on credit issued by bank;
3. Documents on qualifications and bank credit of foreign side in the joint operation, and documents on its financial situation issued by accountant firm;
4. Feasibility analysis report, contract and constitution;
5. Other materials required by the laws and regulations or by departments for examination and approval work.

If Chinese party in the joint operation is involved in the investment in the form of state-owned assets (excluding cash investment), appraisal on invested state-owned assets should be done and confirmed by by departments on state-owned assets management above municipal level, according to relevant regulations on assessment and management on state-owned assets.

Transaction procedures: 1. Applicants for setup of foreign-invested cinema can file in the application to the municipal administrative departments on foreign trade and economic operation, who is to report opionion on verification to Ministry of Foreign Trade and Economic Operation after getting opinions from Administration on Culture, Radio, Film and Television of Shanghai, and then do examination and approval work in accordance with laws and regulations on foreign investment after getting opinion from the State Administration of Radio, Film and Television and from Minstry of Culture. Those getting approval to set up foreign-invested enterprises are to be issued a "Certificate of Approval on Setup of Foreign-invested Enterprises".
2. Applicants getting approval for setup of foreign-invested cinema should, within 1 month from the day when they get "Certificate of Approval on Setup of Foreign-invested Enterprises" from Ministry of Foreign Trade and Economic Operation, go through registration procedures at the State Administration of Industry and Commerce with their "Certificate of Approval on Setup of Foreign-invested Enterprises".
3. With the constuction and renovation work finished for foreign-invested cinemas, which have been proved to be qualificed after acceptance inspection, applicants can apply for "Permit on Operating Movie Showing" at transaction department with their "Certificate of Approval on Setup of Foreign-invested Enterprises" and business license. The transaction department is to give applicants a written reply within 15 days from the day when they accept the application. Those getting approval are to be issued a "Permit on Operating Movie Showing".

Charging standard and its basis: "Permit on Operating Movie Showing": 20RMB per piece (H.J.S.[92] No.273)
Submit to: Administrion on Culture, Radio, Film and Television of Shanghai
Address: No.709 Julu Road, Shanghai
 
The transaction is based on: 1. "Provinsional Regulations on Foreign-invested Cinemas" (Decree 3 from the State Admininstration of Radio, Film and Television, Ministry of Foreign Trade and Economic Operation and Ministry of Culture);
2. "Methods of Administration on Distribution and Showing of Movies of Shanghai" (Decree 47from Shanghai Municipal People's Government issued on August 7th, 1997).

Tel.: 54035290*
Time for transaction: Monday-Friday 8:30-11:30, 13:30-17:30
Time limit for transaction: The transaction department is to give applicants a written reply within 15 days from the day when they accept the application.
Applicant qualifications: 1. Meeting layout and planning on cultural facilities of Shanghai;
2. Having a registered capital of no less than 10 million RMB;
3. Having fixed place for business(or showing movies);
4. The cinema must not be named after overseas film (or media) organs;
5. Investment ratio of Chinese party must not be less than 51% and Chinese side should have dominant power in operation;
6. Term of joint investment or joint operation is no more than 30 years;
7. Meeting relevant prescriptions from Chinese laws and regulations.