Article 1 These Procedures are formulated in accordance with relevant provisions of the Regulations of the People's Republic of China on Telecommunications, the Provisions on the Administration of Foreign-funded Telecommunication Enterprises, the Decision of the State Council on Temporary Adjustments to the Administrative Approval Items or Special Administrative Measures on Access Prescribed in Relevant Administrative Regulations or State Council's Documents in China (Shanghai) Pilot Free Trade Zone, and the Suggestions of Ministry of Industry and Information Technology and Shanghai Municipal People's Government on Further Opening up Value-added Telecommunication Business to Foreign Investors in China (Shanghai) Pilot Free Trade Zone for the purpose of adapting to the need of value-added telecommunications business with foreign investment in the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the “Pilot Zone”).

Article 2 The value-added telecom business that can be operated by foreign-funded enterprises in the Pilot Zone and the proportion of funds contributed by the foreign investors shall be determined by the Ministry of Industry and Information Technology in accordance with relevant regulations.

Article 3 A foreign-funded enterprise in the Pilot Zone that applies for value-added telecom business shall comply with the following requirements:
1. The operator is a company established in the Pilot Zone according to law; 
2. Having appropriate funds and professionals to carry out business activities;
3. Having the reputation or capability to provide long-term services for users;
4. The minimum amount of registered capital is RMB 1 million;
5. Having the necessary premises, facilities, technical solutions and network and information security systems and measures, and the service facilities shall be located in the Pilot Zone;
6. The company as well as its major investors and major managerial executives have not violated the telecom supervision and management system within three years; and
7. Other requirements prescribed by the State.

Article 4 A foreign-invested enterprise in the Pilot Zone that applies for value-added telecom business shall apply to the Shanghai Communications Administration and submit the following documents thereto:
1. A written application for value-added telecom business signed by the legal representative of the company, including the category of telecom business under the application, business coverage, company name, company correspondence address, zip code, contact person, telephone, e-mail address, etc.; 
2. Relevant materials on the major foreign investors of the company, including the company registration certificate, brief introduction, recent financial reports audited by an accounting firm, certificate of credit status; and relevant materials on other investors of the company, including the company registration certificate or business license and brief introduction;