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Article 1. The present Provisions are formulated to mobilize the non-government sectors to accelerate the development of movie industry, cultivate market subjects, regulate market access, increase the overall strength and competitiveness of the movie industry, promote the flourishing of socialist movie industry, and meet the people's demands on their spiritual and cultural lives. Article 2. The present provisions shall apply to the administration of qualification access for domestic state-owned and non-state-owned enterprises to operate movie production, distribution and projection and for wholly foreign-owned companies to participate in the operation of movie production and projection. Article 3. The domestic state-owned and non-state-owned (not including wholly foreign-owned) entities are encouraged to, through joint venture or cooperation with the existing state-owned movie production entities, establish movie production companies or to independently establish production companies. The foreign investors are allowed to, by having share of the existing domestic state-owned movie production entities, establish movie production companies by means of joint venture or cooperation: (1) The application conditions for establishing a joint venture or cooperative (not including wholly foreign-owned) movie production company are as follows: a. The registered capital shall be no less than 1 million Yuan; and b. The application letter, the contract, the articles of association and the photocopy of the business license of each party to the cooperation, which was issued by the administration for industry and commerce, must be submitted; (2) The application conditions for establishing a Chinese-foreign joint venture or cooperative movie production company are as follows: a. The registered capital shall be no less than 5 million Yuan; b. The proportion of foreign investment in the registered capital shall not exceed 49%; and c. The application letter, the contract, the articles of association and the photocopy of the business license of each party to the cooperation, which was issued by the administration for industry and commerce, must be submitted. (The foreign party may provide the financial documents of proof issued by the accounting firm); (3) The application conditions for a domestic state-owned or a non-state-owned (not including wholly foreign-owned) movie and television culture entity that has not obtained the "Permit for Movie Production" to independently establish a movie production company are as follows: a. It shall, when doing a film for the first time, apply to obtain the "Permit for Movie Production (for one film only) ". And it must, at the time of application, submit to the State Administration of Radio, Film and Television a photocopy of the business license issued by the administration for industry and commerce, a proof on its funds, the main idea of the film to be done and other relevant documents. After it has obtained the "Permit for Movie Production (for one film only) ", it shall go through the relevant formalities in the administration for industry and commerce at its locality; b. It has, by way of the "Permit for Movie Production (for one film only) ", invested to do two or more films; c. Its registered capital shall be no less than 1 million Yuan; and d. It must submit the application letter, the photocopy of the business license issued by the administration for industry and commerce, the "Permit for Movie Production (for one film only) " and the "Permit for Public Projection of Films" for the two films it has invested to do, and other relevant documents; (4) To any one that meets the conditions prescribed in Items (1), (2), and (3), the State Administration of Radio, Film and Television shall issue the "Permit for Movie Production". The applicant shall bring the approval document and the "Permit for Movie Production" issued by the State Administration of Radio, Film and Television to go through the relevant formalities in the administration for industry and commerce at its/his locality. Article 4. A movie production company that has obtained the "Permit for Movie Production" in accordance with Article 3 of the present provisions may enjoy the equal rights and obligations as those enjoyed by the existing state-owned movie production entities in accordance with the "Regulation on the Administration of Movies". Article 5. The state-owned and non-state-owned (not including wholly foreign-owned) entities are encouraged to control the shares or to independently establish film technology companies, reform the basic facilities and technical equipment for movie production and projection. While the wholly foreign-owned company are allowed to operate such business by having share, or to operate such business in the approved provinces and cities by controlling the shares. The application conditions are as follows: (1) The registered capital shall be no less than 5 million Yuan; (2) The application letter, the contract, the articles of association, and the photocopy of the business license of each party to the cooperation issued by the administration for industry and commerce, must be submitted; and (3) If the applicant meets the aforementioned conditions, it shall, after approval by the State Administration of Radio, Film and Television, bring the approval documents issued by the State Administration of Radio, Film and Television to the relevant department of the state to go through the relevant approval formalities. Article 6. Whichever entity engaging in the foreign-involved business prescribed in Articles 3 and 5 shall go through the relevant formalities in accordance with the relevant laws and regulations of the state in addition. Article 7. The state-owned and non-state-owned movie and television culture entities are encouraged to establish companies that exclusively operate the distribution of domestically produced films. The application conditions and procedures are as follows: (1) The registered capital shall be no less than 500,000 Yuan; (2) The applicant has been entrusted by a movie production entity to have represented the distribution of two movies or has been entrusted by a TV play production entity to have distributed two TV plays; (3) The applicant must submit the application letter, the photocopy of the business license issued by the administration for industry and commerce, the proof on being entrusted to represent the distribution of movies and TVs, and other relevant documents; and (4) If the applicant meets the aforementioned conditions and applies to the State Administration of Radio, Film and Television for establishing a company exclusively operating the distribution of domestically produced films, the State Administration of Radio, Film and Television shall issue the "Operating Permit for Movie Distribution", which permits the distribution of domestically produced films throughout the country. If the applicant applies to the local administrative department of movie at the provincial level for establishing a company exclusively operating the distribution of domestically produced films, the said local administrative department of movie shall issue the "Operating Permit for Movie Distribution" of the province, which permits the exclusive operation of domestically produced films. The applicant shall bring the "Operating Permit for Movie Distribution" of domestically produced films to the administration for industry and commerce at its locality to go through the relevant formalities. Article 8. A company that has obtained, in accordance with Article 7 of the present provisions, the "Operating Permit for Movie Distribution" for exclusively operating domestically produced films may enjoy the rights and obligations equal to those enjoyed by an existing movie distribution company at the provincial level in accordance with the "Regulation on the Administration of Movies". Article 9. The State Administration of Radio, Film and Television shall, in accordance with the "Measures for the Annual Assessment of the Distribution and Projection of Domestically Produced Films", make the annual assessment on the companies that have obtained the "Operating Permit for Movie Distribution". Article 10. The movie circuit companies may be integrated either in a close type or a loose type. They are encouraged to take the trans-provincial circuits as the basis for the reunification pursuant to the principle of separate management, but they may not merge circuits on the basis of administrative regions. The integration of circuits shall be reported to the State Administration of Radio, Film and Television for approval. (1) The domestic state-owned and non-state-owned movie and television culture (excluding wholly foreign-owned) entities are encouraged to, by having or controlling share, invest in the existing circuit companies or independently established circuit companies: a. An entity must, when investing in an existing circuit company by having share (in a proportion below 49%), invest no less than 30 million Yuan within three years for the new construction and reform of the movie theaters in this circuit. If it invests in an existing circuit company by controlling share, the shareholding entity must invest no less than 40 million Yuan within three years for the new construction and reform of the movie theaters in this circuit; b. Where an entity independently establishes an intra-provincial or national movie circuit company, it must invest no less than 50 million Yuan within three years for the new construction and reform of the movie theaters in this circuit; c. To establish a circuit company, the establisher shall go through the relevant formalities in accordance with the provisions of the State Administration of Radio, Film and Television on establishment of movie circuits. The establishment of an intra-provincial circuit company shall be examined and approved by the administrative department of movie of the people's government of the province, autonomous region or municipality directly under the Central Government where the establisher is located, and be reported to the State Administration of Radio, Film and Television for record. While the establishment of a trans-provincial circuit company shall be examined and approved by the State Administration of Radio, Film and Television; (2) The state-owned and non-state-owned entities and individuals are encouraged to, in accordance with the "Regulation on the Administration of Movies", operate movie distribution and projection in the countryside throughout the country by various means, and also operate movie projection in schools and communities in cities by various means; (3) The state-owned and non-state-owned entities and individuals are encouraged to invest to construct and reform movie theaters. The operation of the movie projection business needs to be reported to the local administrative department of movie at the county level or above for approval, and the relevant formalities shall be gone through in the local administration for industry and commerce. Article 11. The import of films shall be exclusively operated by the film import enterprises approved by the State Administration of Radio, Film and Television. The distribution companies approved by the State Administration of Radio, Film and Television to enjoy the right to distribute imported films nationwide shall undertake the distribution of imported films nationwide. Article 12. The film doing entities are encouraged to, through multi channels, export domestically produced films for which the "Permit for Public Projection of Films" has been obtained. The movie production entities are encouraged to take part in foreign film festivals (exhibitions). And the films in exhibition shall obtain the "Permit for Public Projection of Films", and shall be reported to the State Administration of Radio, Film and Television for record in advance. To hold a Chinese-foreign film exhibition or an international movie festival (exhibition) inside the territory of China, it shall be reported to the State Administration of Radio, Film and Television for approval. Article 13. An every-two-year inspection system shall be applied to the "Permit for Movie Production" and the "Operating Permit for Movie Distribution" issued by the State Administration of Radio, Film and Television. The local administrative department of movie shall, within the scope of its administrative authority, apply an annual inspection system to the "Operating Permit for Movie Distribution" and the "Operating Permit for Movie Projection" it has issued. Article 14. Any matter not prescribed in the present provisions shall be handled in accordance with the "Regulation on the Administration of Movies" and the relevant provisions. Article 15. The present provisions shall come into force on December 1, 2003. |
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