State Administration for Industry and Commerce, Administration of Brokers Procedures (2nd Revision)

Promulgated: August 28 2004
Effective: as of date of promulgation
Interpreting authority: State Administration for Industry and Commerce
Applicability: The term "brokers" refers to natural persons, legal persons and other economic organizations that engage in brokerage business such as acting as the middleman, broker or agent in order to facilitate transactions of others with an aim to earn commissions in economic activities (Article 2).

Main contents: Brokers may take the form of family proprietors (ge ti gong sheng hu), wholly individually owned enterprises, partnership enterprises or companies (Articles 6-9). After obtaining the business licence, and appointment or dismissal of brokerage practitioners, brokers shall, within 20 days from the date of appointment or dismissal, submit relevant materials to the administration for industry and commerce at the locality for the record (Article 12). Brokers may conduct brokerage activities for all commodities and service items for which circulation in the market is permitted by the state; brokers shall comply with the relevant state provisions for all commodities and services subject to state restrictions on free sale and purchase and shall conduct brokerage activities within the scope approved; brokers shall not conduct brokerage activities for commodities and services that are prohibited from circulation by the state (Article 15). Apart from items of instant settlement, brokers undertaking brokerage business shall sign contracts with the parties according to the business nature and specifying the major items (Article 16). Brokers shall not contract business by improper means such as involving in slander of other brokers or payment of introduction fees (Article 16).
Related legislation: Administration of Urban and Rural Family Proprietors Tentative Regulations; PRC Wholly Individually owned Enterprises Law, Aug 30 1999, CLP 1999 No.8 p55; PRC Partnership Enterprises Law, Feb 23 1997, CLP 1997 No.3 p25 and PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21
Repealed legislation: Administration of Brokers Procedures (Revised), Dec 3 1998