III.The Establishment of an Audio and Video Publis...
Audio and video products refer to audio tapes, video tapes, gramophone records, compact discs and laser discs, etc.on which contents are recorded.Electronic publications include read-only optical discs (CDROM, DVD-ROM, etc.), write-once optical discs (CD-R, DVD-R, etc.),rewritable optical discs (CD-RW, DVD-RW, etc.), floppy disks, hard disks,integrated circuit cards, etc.Both audio and video products and electronic publications are subject to the Regulations on the Administration of Audio and Video Products, which clearly stipulates the activities as publication,manufacture, reproduction, import, wholesale, retail, and lease, etc.
The application for the establishment of an audio and video product publishing entity shall be examined and consented to by the competent press and publication department under the people’s government of the province, autonomous region or municipality directly under the Central Government where the applicant is located before it is submitted to the competent press and publication department under the State Council for examination and approval.The competent press and publication department under the State Council shall, within 60 days after accepting the application, make a decision on approving or not approving the application and shall notify the applicant.If the application is approved, a“License for Publishing Audio and Video Products” shall be issued to the applicant, who shall have itself registered and obtain the business license in accordance with the law in the administrative department for market regulation with the “License for Publishing Audio and Video Products”.The application shall clearly state the following: (1) the name and address of the audio and video product publishing entity; (2) the name and address of the controlling entity of and the competent organ of the audio and video product publishing entity; (3) the name(s), address(es) and qualification certifying documents of the legal representative or principal responsible person(s) of the audio and video product publishing entity; (4) the sources and amount of funds of the audio and video product publishing entity.
An audio and video product publishing entity may, in accordance with the relevant provisions of the State, wholesale and retail the audio and video products of its own publication, and engage in the publishing business of imported audio and video products within the approved publishing business scope.If it intends to be engaged in the wholesaling or retailing business of the audio and video products not of its own publication, it shall go through the formalities of examination and approval separately.(https://www.daowen.com)
To establish an audio and video product publishing entity, the applicant shall meet the following conditions required by the Regulations on the Management of Audio and Video Products: (1) having the name and articles of association of the audio and video product publishing entity;(2) having the controlling entity and the competent organ which are recognized by the competent press and publication department under the State Council; (3) having a well-defined scope of business; (4) having an organization adapted to the needs of its scope of business and a staあof professionals in the publication of audio and video products who meet the qualification requirements prescribed by the State; (5) having the funds, equipment and work premises adapted to the needs of its scope of business; (6) other conditions provided for in laws and administrative regulations.
It should also be noted that according to the Special Administrative Measures (Negative List) for the Access of Foreign Investment (2019) (Order No.25 of the National Development and Reform Commission, Ministry of Commerce), at present, foreign investors are forbidden to invest in the editing, publishing, and manufacturing of books, newspapers, periodicals, audio and video products, and electronic publications, but audio and video product publishing entities may cooperate with organizations or individuals from Hong Kong Special Administrative Region, Macao Special Administrative Region, Taiwan region and foreign countries to manufacture audio and video products.