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15 July 2015

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Guidance for Establishing and Altering Foreign-invested Cinemas

Relevant Provisions on the Evaluation and Approval of the Establishment of Foreign-invested Cinemas

 

(A) Main Legal Basis 

The Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures and Regulations for the Implementation of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures and the Detailed Rules for the Implementation of the Law of People's Republic of China on Sino-Foreign Joint Cooperative Ventures, the Law of the People's Republic of China on Foreign-funded Enterprises and Rules for the Implementation of the Law of the People's Republic of China on Foreign-funded Enterprises, Regulations on the Administration of Movies and Interim Provisions on Investment in Cinemas by Foreign Investors

 

(B) Examination and Approval Authority 

1. The Ministry of Commerce - foreign-invested cinemas approved by the Ministry of Commerce in accordance with relevant laws and regulations (the total investment is eligible for examination and approval by the Ministry of Commerce in the form of shareholdings, etc.) 

 

2. Department of Commerce - other foreign-invested cinemas besides those mentioned above.

 

(C) Qualifications 

Besides "Application Requirements" in Item 4, the establishment of foreign-invested cinemas shall also meet the following requirements: 

 

1. Shall be consistent with the distribution and planning of local cultural facilities; 

 

2. The registered capital shall not be less than 6 million RMB; 

 

3. Having a fixed place of business (for screening); 

 

4. In the case of sino-foreign equity joint venture cinemas, the investment ratio of the Chinese party to the joint venture in the registered capital may not be less than 51%; in the case of sino-foreign equity joint venture cinemas in national pilot cities: Beijing, Shanghai, Guangzhou, Chengdu, Xi'an, Wuhan and Nanjing, the investment ratio of the foreign party to the joint venture in the registered capital may not exceed 75% m;(except those wholly foreign-owned cinemas in accordance with the regulations)

 

5. The period of the joint venture or cooperation must not be longer than 30 years; and

6. Shall be in accordance with the laws, regulations and the relevant provisions of China.

 

(D) Application Materials

1. Application forms for the establishment and the documents preliminarily examined by the administrative departments of commerce (investment invitation) department at the municipal level (cities at the prefecture level);

 

2. The feasibility study report jointly compiled by all investment parties or foreign investors;

 

3. Joint (Cooperative) venture contracts and articles of association signed by the legal representative or authorized representatives of the joint (cooperative) venture parties; articles of association signed by the legal representative or authorized representatives of foreign investors is required for foreign-invested enterprises;

 

4. The name list of Chairman of the joint (cooperative) venture or Joint Management Committee Director, Vice Chairman or Deputy Director, Director or committee candidates designated by the joint (cooperative) venture parties or by cooperative parties through consultation, their resumes, valid IDs (photocopies) and the accreditation of directors from all parties; name list of legal representatives (or board of directors candidates) of foreign-invested enterprises, resumes, valid IDs (photocopies), and attorney for directors of each investor;

 

5. The certificate for the qualification or notary certificate of identity of foreign investors issued by their local notary organs (investors from Hong Kong, Macao and Taiwan shall provide the certificate for qualification or notary certificate of identity issued by their local notary organs);

 

6. Documents of investor's qualification certificate and notary certificate of identity provided by Chinese Embassy or Consulate in investor's country to the notary public of the country where the foreign investor is located (investors in Hong Kong, Macao and Taiwan excluded) ;

 

7.A Power of Attorney for the Service of Legal documents signed by the overseas investor (the authorizer) and the addressee of service of domestic legal documents (the authorized);

 

8. The qualification and credit certification of foreign investors and legal representative identification certificate (photocopy) and financial statements issued by an accounting firm;

 

9. Chinese bank credential letter, certificate of registration (photocopy), legal representative certificate (photocopy); 

 

10. Relevant materials about land use right for the cinema;

 

11. In case of investing with state-owned assets, China shall provide the appraisal report of state-owned assets and confirmation of state-owned assets administration department;

 

12. The written notification on pre-approval of the enterprise name;

 

13. Submission of other materials requested by the Ministry of Commerce.

 

 

Chinese source: hunan.gov.cn