Article 6 Jointly-operated commercial enterprises must conform to the following conditions:
(1) conforming to the relevant Chinese laws, regulations and provisions;
(2) conforming to commercial development plans of the cities where they are located;
(3) The registered asset of retail-oriented jointly-operated commercial enterprises shall not be less than 50 million RMB, that of those in middle and western areas shall not be less than 30 million RMB; the registered asset of wholesale-oriented commercial enterprises shall not be less than 80 million RMB, that of those in middle and western areas shall not be less than 60 million RMB.
(4) If the jointly-operated commercial enterprises have the operation of more than 3 chain stores (except the grocery store for people's convenience, professional stores and exclusive stores), Chinese operators shall offer a proportion of more than 51% of the total capital; if the jointly-operated commercial enterprises are in good operating condition, the foreign operators have purchased a large quantity of domestic products and there is a possibility to take the advantage of foreign operators' international marketing network to promote the export of domestic products, foreign operators can hold the share after the approval of the State Council. Chinese operators shall provide no less than 35% of the total capital in the jointly-operated commercial enterprises with no more than three branch stores (including three) as well as in grocery store for people's convenience, professional stores and exclusive stores which are in chain operation. In the wholesale oriented jointly-operated commercial enterprises (including retail enterprises engaged in wholesale business simultaneously), Chinese operators must offer a proportion of more than 51% of the total capital.
(5) The branch store of the jointly-operated commercial enterprises are confined to the concatenate form that foreign and Chinese operators both invest and operate directly. Other concatenate forms such as free chains or concessionary chains are prohibited temporarily.
(6) The operating period shall not exceed 10 years, 40 years for the middle and western areas.
Article 7 Under the condition that foreign operators contract with jointly-operated commercial enterprises concerning the use of trademark and trade name and technological transfer, the related expenses that foreign operators collect shall not exceed 0.3% of the enterprise's sale volume of the year and the limited period for collection is 10 years.
Article 8 Jointly-operated commercial enterprises shall be established according to the following procedure: Chinese operators shall submit feasibility reports (fungible of project propositions) and relevant documents to economic and trade commissions (economic commissions, planning and economic commissions, the same in the following part) in the pilot areas, which in conjunction with the competent domestic trade departments shall report to the State Economic and Trade Commission according to the prescribed procedures. The State Economic and Trade Commission shall examine and approve the reports after consulting the Ministry of Foreign Trade and Economic Cooperation. After the feasibility reports (fungible of project propositions) have been approved, the foreign trade and economy departments in the pilot areas shall submit the contracts and articles of associations to the Ministry of Foreign Trade and Economic Cooperation according to the prescribed procedures, which shall examine and approve the contracts and articles of associations. Jointly-operated commercial enterprises which have been approved shall, within one month since the date of receiving the approval certificate, register with the State Administration for Industry and Commerce on the strength of the Approval Certificate for Enterprises with Foreign Investment issued by the State Administration for Industry and Commerce.
Article 9 To establish jointly-operated commercial enterprises, the following documents shall be submitted:
I. the declaring document on the study of feasibility
(1) the feasibility report compiled by all operators (fungible of project proposition);
(2) bank's certification on property and credit, certificate of registration (photocopy), legal representative certificate (photocopy) of all operators;
(3) all operators' annual asset and liability table, profit and loss table of the recent three years audited by accounting agency;
(4) (if Chinese operator makes investment with State-owned property) the confirmation document of State-owned property managing departments on the assessing report concerning Chinese operator's investing State-owned property;
(5) the species of merchandises that the planned jointly-operated commercial enterprises will operate;
(6) other related documents.
II. the declaring documents concerning contract and articles of association
1. the declaring documents on the study of feasibility and the approving documents thereof;
2. contracts and articles of association of the planned jointly-operated commercial enterprises signed by accredited representatives of all operative parties;
3. list of import and export merchandises;
4. the members of the board of directors of the planned jointly-operated commercial enterprises and the accreditation of directors from all parties;
5. the notice of the approval of enterprise's appellation provided by the State Administration for Industry and Commerce;
6. other related documents.