Article 18 An insurance company to set up a branch shall make an application and satisfy the following conditions：
(1) The solvency of the previous year is sufficient and the solvencies of two quarters continuously before the submittal of the application are sufficient;
(2) The insurance company has excellent governance structure and sound internal control;
(3) The applicant has a perfect branch management system;
(4) The feasibility for the branch to be set up has undergone sufficient reasoning;
(5) where the insurance company is applying for the establishment of a branch out of the provincial-level branch in a province, autonomous region or municipality out of its home place, such provincial-level branch has opened for business;
(6) The applicant has not had the major administrative punishments by financial regulatory authorities within the latest two (2) years and does not have the situations being registered and investigated by CIRC due to its being suspected of major illegal acts;
(7) where the insurance company is applying for a branch out of the provincial-level branch, within the province, autonomous region or municipality where the branch is to be set up, the provincial-level branch has not had the major administrative punishments by financial regulatory authorities within the latest two (2) years and the other branches having established have not had the records of major insurance administrative punishments within the latest six (6) months;
(8) The preparation responsible person accepted by the applicant is available; and
(9) Other conditions stipulated by CIRC.
Circular on the Verification of Some Issues Related to the Management of the Branches of an Insurance Company
Ref. Bao Jian Fa  No.49
Article 3.3 A branch of a foreign-funded insurance company that is applying to be reformed as a branch company, a central sub-branch company, a sub-branch company or a business office shall make an application to CIRC, or as a sales service office, make an application to the local insurance regulatory administration.
CIRC or the local insurance regulatory administration, within twenty (20) business days as the receipt of the complete application documents, shall make a written decision of approving or not approving. If not so, with the approval of the responsible person of CIRC or the local insurance regulatory administration, the deadline may extend for another ten (10) business days and the reason for such extension shall be informed of the applicant. Where the application is approved, CIRC or the local insurance regulatory administration shall issue the Insurance Business Licence; where the application is not approved, CIRC or the local insurance regulatory administration shall inform the applicant in writing and tell it the reason therefor.