SHANGHAI LOCAL LAWS, RULES AND REGULATIONS

Suggestions of Shanghai Municipality on
Implementation of "Interim Regulations on the Establishment of and Administration over Sino-foreign Equity Joint, Sino-foreign Cooperative Occupation Introduction Organization"

April 23, 2002

1. In order to normalize labor market agency activities, optimize laborer resource allocation, the present Suggestions are formulated according to the Rules of Shanghai Municipality on Brokers (hereinafter referred to as “Rules”) and “Provisional Regulations On the Establishment of and Administration over Sino-foreign Equity join and Sino-foreign Cooperative Occupation Introduction organization” (hereinafter referred to as “Provisional Regulations”).

2. Shanghai Labor and Social Protection Department, Shanghai Foreign Investment Approval Department and Shanghai Administrative Department for Industry and Commerce are responsible for examining and approving, registering, administrating, inspecting and supervising Sino-foreign equity joint, Sino-foreign cooperative occupation introduction organization within the scope of authorities. The application for establishing Sino-foreign equity joint, Sino-foreign cooperative occupation introduction organization shall be examined and approved by Shanghai Foreign Investment Commission or by the authorized departments. If approved, the applicant shall register with Shanghai Administration for Industry and Commerce and apply for occupation introduction license with Shanghai Labor and Social Protection Department. Occupation introduction brokers should go through business registration, submit qualification identification certificate for filing and register with Shanghai Administrative Department for Industry and Commerce.

3. When applying for the establishment of Sino-foreign equity joint, Sino-foreign cooperative vocation introduction organization (namely occupation introduction broker’s organization), the applicant shall meet the following conditions besides the conditions stipulated in Article 6 of the “Rules” and “Provisional Regulations”: (1) The Chinese Partners applying for establishing Sino-foreign equity joint, Sino-foreign cooperative occupation introduction organization should have “Shanghai Occupation introduction License” issued by Shanghai Labor and Social Protection Department; (2) The intended Sino-foreign equity joint, Sino-foreign cooperative occupation introduction organization should has more than 5 occupation introduction brokers;

4. Brokers engaged in occupation introduction shall obtain professional qualification and business license. The exam syllabus and requirements for occupation introduction brokers shall be approved jointly by Shanghai Administrative Department for Industry and Commerce and Shanghai Labor and Social Protection Department.

5. Procedures for the application for the establishment of Sino-foreign equity joint and Sino-foreign cooperative occupation introduction organization:

(1) When establishing Sino-foreign equity joint and Sino-foreign cooperative occupation introduction organization, the applicant should render project proposal to Shanghai Foreign Investment Commission or its authorized departments. The approval departments shall decide whether or not to approve within 20 working days after receiving the project proposal. If approved, they should issue project proposal approval documents and render a copy to Shanghai Administrative Department for Industry and Commerce, Shanghai Labor and Social Protection Department and other related administrative departments respectively. If disapproved, the reasons thereto should be given;

(2) The applicant should check the name of Sino-foreign equity joint and Sino-foreign cooperative occupation introduction organization with Shanghai Administrative Department for Industry and Commerce after project proposal approved;

(3) After name check, the applicant should submit feasibility study report, contract and articles of association to Shanghai Foreign Investment Commission, which will decide whether or not to approve within 30 days after receiving the aforementioned documents in this paragraph. If approved, Shanghai Foreign Investment Commission will issue Sino-foreign equity joint or cooperative enterprises approval certificate to the applicant; if disapproved, the reasons thereto shall be given.

6. The approved Sino-foreign equity joint and Sino-foreign cooperative enterprises should register with Shanghai Administrative Department for Industry and Commerce within 30 days after getting Sino-foreign equity joint or cooperative enterprises approval certificate and apply for Shanghai Occupation introduction License with Shanghai Labor and Social Protection Department within 10 days from the date of registration.

7. The Sino-foreign equity joint and Sino-foreign cooperative occupation introduction organization established in accordance with the present Suggestions should, pursuant to the administrative requirements formulated by Shanghai Labor and Social Protection Department concerning occupation introduction organization, report data to the relevant upper level authorities regularly. If an occupation introduction organization needs to hold a job fair, it shall submit the documents required to Shanghai Labor and Social Protection Department for filing in time. The yearly inspection system for the occupation introduction license shall be adopted.

8. The change of investors, proportion of shares of the Sino-foreign equity joint or Sino-foreign cooperative occupation introduction organization and the establishment of branches of the above mentioned organization shall examined and approved pursuant to the stipulations provided for in Articles 5 and 6, after which a change registration shall be made with Shanghai Administrative Department for Industry and Commerce and a change record shall be done with Shanghai Labor and Social Protection Department.

9. Administrative Regulations Labor Force Market, Provisional Regulations of Shanghai Municipality on the Establishment of and Administration over Sino-foreign Equity Joint and Sino-foreign Cooperative Occupation Introduction Organization and other relevant administrative rules are applicable to the administration over Sino-foreign equity joint and Sino-foreign cooperative occupation introduction organizations.

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