Chapter II Establishment

Article 7The State adopts the license system for the business activities conducted by the units operating business premises for Internet access services. Without being licensed, no organization or individual may set up any business premises for Internet access services, or engage in any business activities providing Internet access services.

Article 8A unit operating business premises for Internet access services shall be incorporated as an enterprise, and shall satisfy the following conditions:

(1) possessing a title, domicile, organizational structure and articles of association;

(2) possessing appropriate capital for business activities;

(3) possessing business premises that are commensurate with its business activities and meet the requirements set by the State for fire control;

(4) possessing sound and complete management systems for the security of information networks as well as technological security measures;

(5) possessing a permanent website address and such equipment as computers and their attached devices that are commensurate with the business activities;

(6) possessing security administration staff, managerial staff and technical professionals who are commensurate with its business activities and obtain the qualifications for practicing the business; and

(7) other conditions set forth by laws and administrative regulations as well as by the relevant departments of the State Council.

The minimum business area of the business premises for Internet access services, the number of such equipment as computers and their attached devices, and the standard of the area for each computer shall be determined by the culture administration department of the State Council.

In addition to the conditions provided in paragraphs (1) and (2) of this Article, the examination and approval of the units operating business premises for Internet access services shall also be subject to the requirements set forth by the culture administration department of the State Council and the culture administration departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government for the total number and layout of the units operating business premises for Internet access services.

Article 9No business premises for Internet access services may be established at a distance not more than 200 meters from high schools and primary schools or within residential buildings (compounds).

Article 10To establish a unit operating business premises for Internet access services, an application therefor shall, accompanied by the following documents, be submitted to the culture administration department of the local people's government at or above the country level:

(1) a notice of advance approval of its title and its articles of association;

(2) materials certifying the identity of its legal representative or its principal responsible person;

(3) certification of capital and creditworthiness;

(4) property right certification, or a letter of intent on lease of, the business premises; and

(5) other documents needed to be submitted according to law.

Article 11The culture administration department shall make a decision within 20 workdays from the date of receipt of the establishment application, and issue the approval document that permits the preparations for the establishment to those proved to be in conformity to the conditions after examination.

After the completion of preparations for the establishment, the applicant shall apply for the examination of information network security and fire control security to the public security organ at the same level on the basis of the approval document that permits the preparations for the establishment. The public security organ shall make a decision thereon within 20 workdays from the date of receipt of the application, and issue an approval document to those passing the examination after field inspection.

The applicant shall apply to the culture administration department for final examination on the basis of the approval document issued by the public security organ. The culture administration department shall make a decision within 15 workdays from the date of receipt of the application according to the provisions of Article 8 of these Regulations, and issue a Permit for Cyber-Culture Business to those passing the examination after field inspection.

Where the culture administration department believes upon examination that an application does not meet the conditions, or where the public security organ believes that an application does not comply with the requirements, it shall give the reasons therefor to the applicant in writing.

Before putting into operation, the applicant shall apply to the administrative department for industry and commerce for registration on the basis of the Permit for Cyber-Culture Business and draw the business license according to law.

Article 12A unit operating business premises for Internet access services shall not alter, lease or lend its Permit for Cyber-Culture Business or transfer it in any other forms.

Article 13Where a unit operating business premises for Internet access services changes the address of its premises, or rebuilds or expands its premises, or changes the number of computers or other important items, it shall obtain approval from the original examining departments.

Where a unit operating business premises for Internet access services changes its title, domicile, legal representative or principal responsible person, registered capital, or website address, or terminates its business activities, it shall go through alteration registration or cancellation registration according to law with the administrative department for industry and commerce, and undertake the relevant procedures or put on a record with the culture administration department and the public security organ.