Administrative Measures for Brokers
Order of the State Administration for Industry and Commerce No.14
August 28, 2004
The Administrative Measures for Brokers , which were amended by the decision of the executive meeting of the State Administration for Industry and Commerce of the People's Republic of China, are hereby promulgated, and shall come into force as of the date of promulgation.
Director General: Wang Zhongfu
Administrative Measures for Brokers
Article 1 The present Measures are formulated in accordance with the relevant laws and regulations for the purpose of maintaining market order, regulating brokerage activities, promoting the development of broking industry, and safeguarding the lawful rights and interests of the parties to brokerage activities.
Article 2 The "broker" as mentioned in the present Measures shall refer to a natural person, legal person or other economic organization that undertakes intermediation, brokerage, or agency and other brokerage business in economic activities to help bring about the deal of others for the purpose of receiving commissions and.
Article 3 When undertaking brokerage activities, a broker shall observe state laws and regulations, and follow the principle of equality, free will, fairness and good faith.
Article 4 The lawful rights and interests of brokers shall be protected by state laws and regulations; no entity or individual may infringe upon them.
Article 5 The administrative departments for industry and commerce at all levels shall be responsible for making supervision over brokers. Their main responsibilities and functions shall be:
1. Administering the registration of brokers;
2. Regulating and administering brokerage acts in accordance with the relevant laws, regulations and the provisions of the present Measures, and making supervision over the brokerage activities, protecting lawful management, and investigating into and punishing illegal business operation;
3. Guiding the work of self-disciplinary organization of brokers; and
4. Other functions and responsibilities invested by the state.
Article 6 A person meeting the requirements as prescribed in the Provisional Regulations on the Administration of Urban and Rural Individual Businesses shall apply to the administrative department for industry and commerce for obtaining business license of individual business to become an individual broker.
Article 7 A person meeting the requirements as prescribed in the Law of the People's Republic of China on Sole Proprietorship Enterprises shall apply to the administrative department for industry and commerce for establishing a sole proprietorship brokerage enterprise.
Article 8 Persons meeting the requirements as prescribed in the Law of the People's Republic of China on Partnership Enterprises shall apply to the administrative department for industry and commerce for establishing a partnership brokerage enterprise.
Article 9 Those meeting the requirements as prescribed in the Company Law of the People's Republic of China shall apply to the administrative department for industry and commerce for establishing a brokerage company.
Article 10 The various economic organizations managing the brokerage business shall have the conditions as prescribed by the relevant laws and regulations.
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