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The Legal Issues Related Foreign-funded Advertising Enterprises

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The Legal Issues Related Foreign-funded Advertising Enterprises Powered By Docstoc
					In recent years, the development of Chinese advertisement market has
become the hot spot of the world market. Like the rapid growth of Chinese
economy, China advertising market has furnished life and vigor to the
worldwide market while the global economy is down. Data released by China
Commodity Marketplace (China CCM.com) showed that the total expenditure
of China's advertising approximated USD40, 000,000,000, ranked fourth in
the world in 2009, by 2010 it is estimated that it will surpass Germany
to become the third; and the total expenditure of China's advertising
will surpass Japan to become the second great advertising country, next
only to America by around 2014. At the same time, Chinese government has
relaxed restriction on foreign-funded advertising enterprises, and
foreign investors in growing numbers begin to march into Chinese
advertisement market.      With a view to strengthening the
administration on the foreign-funded advertising enterprises, and
promoting the sound development of advertising industry, Chinese
government formulates suitable regulations constantly. In accordance with
existing Chinese regulations and laws of foreign-funded advertising
enterprises, the essay will discuss the legal issues when foreign
investors invest and merge advertising enterprises in China.


  1. Prerequisites of foreign-funded advertising enterprises      The
establishment of a Sino-foreign equity joint and contractual advertising
enterprise (including Sino-foreign equity joint enterprises and Sino-
foreign contractual joint ventures) by investing and merging an
advertising enterprise, should meet the following requirements: (1) All
partners shall be enterprises engaging in advertising business; (2) All
partners shall have existed and have engaged in advertising business for
not less than 2 years since establishment; and (3) Having advertising
achievements.      Establishing a foreign-funded advertising enterprise
through foreign investors investing and merging, the following
requirements are necessary: (1) The investor shall be an enterprise
mainly engaging in advertising business; and (2) The investor has existed
and has engaged in advertising business for not less than 3 years since
establishment.      2. The approval authority of foreign-funded
advertising enterprises      The project proposal and the feasibility
study report of a foreign-funded advertising enterprise shall be subject
to the examination and approval of the State Administration for Industry
and Commerce and its authorized administration for industry and commerce
of provincial level. The contracts and articles of associations of a
foreign-funded advertising enterprise shall be subject to the examination
and approval of the Ministry of Commerce and its authorized
administrative department of the provincial level.      3. The business
scope of foreign-funded advertising enterprises      A foreign-funded
advertising enterprise that meets the prescribed conditions may engage in
designing, making, issuing, or agency of various advertisements
businesses both home and abroad. The specific business scope shall be
subject to the examination and approval of the SAIC and its authorized
administration for industry and commerce of provincial level in pursuance
of the Regulations on the Qualifications of Advertising Operators or
Issuers of Advertisements and the Phraseology for Determining the
Business Scope of Advertising.      4. Other considerations of foreign-
funded advertising enterprises      All the documents required to submit
shall be expressed in Chinese. While establishing an advertising
enterprise, a foreign investor may entrust a qualified agency to handle
the application formalities for it. Establishing a foreign-funded
advertising enterprise, one shall abide by the present provisions as well
as the Law of the People's Republic of China on Sino-foreign Equity Joint
Enterprises, the Law of the People's Republic of China on Sino-foreign
Contractual Joint Enterprises, the Law of the People's Republic of China
on Foreign-funded Enterprises, the Advertising Law of the People's
Republic of China, Regulations on the Management of Advertisements, the
Regulations on the Qualifications of Advertising Operators or Issuers of
Advertisements and the Phraseology for Determining the Business Scope of
Advertising, and other relevant laws, regulations and rules. The legal
relationship between advertising businesses is more complicated when
establishing an advertising enterprise; we suggest that when you invest
this industry you may entrust a Chinese agency to agent registration and
other correlative events.


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Legal, Issues, Advertising, Foreign-funded,




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