Foreign Investment In Cinemas Tentative Provisions

Original Language Title: 外商投资电影院暂行规定

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21st, State administration of radio, film and television of the provisional regulations on foreign investment in cinemas on September 28, 2003 Council meetings through the State administration of radio, film and television, and People's Republic of China's Ministry of Commerce, Ministry of culture agreed, is released, as of January 1, 2004. Director of the State administration of radio, film and television: Xu People's Republic of China's Minister of Commerce: Lu Fuyuan People's Republic of China Minister of culture: Sun Jiazheng, November 25, 2003 provisional regulations on foreign investment in cinemas first in order to meet the needs of reform and opening up, absorbing foreign capital, introduce advanced technology and equipment, promoting the prosperity and development of China's film industry, in accordance with the People's Republic of China Law on Sino-foreign joint ventures and the People's Republic of China on Sino-foreign co-operative enterprises, the movie management regulations
    And other relevant laws and regulations, this provision is enacted. Provisions of this article apply to foreign companies, enterprises and other economic organizations or individuals (hereinafter referred to as the joint venture foreign) in accordance with the principle of equality and mutual benefit, and approved by the Chinese Government, with companies in China, enterprises (hereinafter referred to as the joint venture China) set up Sino-foreign joint ventures, cooperative enterprises, built or improved cinema, film screening business.
    Foreign article may establish wholly-owned cinemas, not to form cinema company. Fourth article foreign investment cinema should meet following conditions: (a) meet local culture facilities of layout and planning; (ii) registered capital many Yu 6 million Yuan Yuan; (three) has fixed of business (show) places; (four) Sino-foreign joint venture cinema, joint venture China in registered capital in the of investment proportion shall not below 51%; on national pilot city: Beijing, and Shanghai, and Guangzhou, and Chengdu, and Xian, and Wuhan, and Nanjing Sino-foreign joint venture cinema,
    Highest percentage of foreign investment in the registered capital of the joint venture shall not exceed 75% (v) joint venture, the cooperation term not exceeding 30 years; (vi) in line with China's relevant laws and regulations and related provisions.
    Article fifth if the Chinese side of the joint venture with the State-owned assets (except for cash) investment which shall be governed by the relevant provisions of the State-owned assets management procedures. Sixth article established foreign investment cinema according to following program approval: (a) joint venture China must to location provincial business administrative sector proposed application, submitted following material: 1. established foreign investment cinema project applications; 2. joint venture China of corporate qualification proved material, and theater land right of about material, and Bank funding letter proved; 3. joint venture foreign of qualification proved material, and Bank funding letter proved, and accountants firm issued of financial status proved material; 4.
    Foreign investment in cinemas name issued by the administrative departments for industry and Commerce approved notices 5. feasibility study report, contract and articles of association; 6. laws, regulations and other materials required by the approval authorities. (B) the provincial business administration with the consent of the provincial film Administration agreed, in accordance with national laws and regulations relating to foreign investment approval, Ministry of Commerce, the State administration of radio, film and television, the Ministry of culture, for the record. Issued to approve the establishment of foreign-invested enterprises approval certificate for foreign-invested enterprises.
    (C) approve the establishment of foreign investment in cinemas, and should receive the foreign invested Enterprise approval certificate within one month from the date of holding the foreign invested Enterprise approval certificate to the provincial administration for industry and commerce registration.
    (D) foreign investment in cinemas after the completion of construction, renovation, and acceptance by the relevant departments, the foreign invested Enterprise approval certificate and the license of film administrative departments at the provincial level to apply for the license the film, before engaging in the film business.
    Article seventh established foreign investment in cinemas when change of ownership and investment, according to the sixth of these rules of procedure.
 Eighth foreign investment in cinemas must comply with the relevant laws and regulations of the State, engaged in business activities in accordance with the regulations on administration of films, and accept the supervision and management of the relevant departments of the Chinese Government, showing of the film must be in possession of the State administration of radio, film and television issued the license of film released, no screening of smuggled, pirated movies, may not engage in commercial video, VCD, DVD screenings.
    Nineth subsidiary engaged in foreign investment in cinemas other entertainment services should comply with the relevant provisions of the State.
    Article tenth Hong Kong S.A.R., and Macau S.A.R. and Taiwan investors in the Mainland in the area of establishment of enterprises engaged in film business with reference to these regulations. 11th article of the provisions and annex as of January 1, 2004.
Annex to the present regulation and the effective date, October 25, 2000, State administration of radio, film and television, the foreign trade and economic cooperation and the Ministry of culture issued the provisional regulations on foreign investment in cinemas at the same time abolish. Annex: to promote Hong Kong, and Macau and mainland established more close trade relationship, encourages Hong Kong, and Macau service provides who in mainland established engaged in movie show business of enterprise, according to state approved of Mainland and Hong Kong on established more close trade relationship of arrangements and Mainland and Macau on established more close trade relationship of arrangements, now on foreign investment cinema provisional provides in the about Hong Kong and Macau service provides who investment cinema problem made following special provides: a, and since January 1, 2004 up, Allowed in the Mainland to Hong Kong and Macao service suppliers in joint ventures, cooperative forms of construction, renovation and operation of cinemas.
    Allows Hong Kong and Macao service providers to have a majority stake, but not more than 75%. Second, Hong Kong and Macao service providers to invest in mainland cinemas of other provisions, according to the implementation of the provisional regulations on foreign investment in cinemas. (Source: radio website)

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