Regulations on the Registration and Management of Social Organizations (CECC Full Translation)

The following is a translation prepared by the Congressional-Executive Commission on China of the "Regulations on the Registration and Management of Social Organizations" issued by the State Council on October 25, 1998. The Chinese text was retrieved from the Ministry of Civil Affairs Web site on May 16, 2006.

Regulations on the Registration and Management of Social Organizations

Order No. 250 of the State Council of the People’s Republic of China.

The "Regulations on the Registration and Management of Social Organizations,” were issued by the State Council at the 8th Standing Committee session on October 25, 1998, to take effect from that date.

Premier Zhu Rongji

1998 October 25

Chapter 1
General Principles

Article 1

These regulations are formulated to protect citizens’ freedom of association, to protect the lawful rights and interests of social organizations, strengthen the registration and management of social organizations, and promote a material socialist and intellectual civilization.

Article 2

These regulations use the term social organizations to refer to non-profit organizations voluntarily created by Chinese citizens in order to achieve the collective desires of members, and conduct activities according to their charters.

All groups other than state bureaus may join social organizations as institutional members.

Article 3

Social organizations should receive the approval and examination of a sponsor organization, and register according to the stipulations in these regulations, in order to be founded.

A social organization should possess the status of a legal entity.

The organizations listed below are not included in the scope of these regulations:

(1) People’s organizations participating in the Chinese People’s Political Consultative Conference.
(2) Organizations that have been exempted from registration after review by the personnel office of the State Council and approved by the State Council itself.
(3) Organizations in government bureaus, organizations, public institutions, that were established internally, and that conduct activities internally in the work unit.

Article 4

Social organizations must observe the Constitution, the laws, regulations and policies of China, and cannot violate the basic principles of the Constitution. They must not harm the unity of the country, or the security and ethnic harmony of China. Social organizations are also not permitted to damage national interests, the interests of society, the interests of other organizations, or lawful interests of Chinese citizens. They may not violate the prevailing social morals.

Social organizations may not engage in profit-seeking business activities.

Article 5

The state will protect activities conducted by social organizations in accordance with the law, regulations and rules; other organizations or persons may not unlawfully interfere with them.

Article 6

The State Council Ministry of Civil Affairs and local civil affairs departments at county level and above are the people’s government bureaus for registration and management of social organizations at the corresponding level of government (hereinafter referred to as registration and management bureaus).
The relevant departments of the State Council and of county-level or higher local peoples' governments at all levels and organizations authorized by them are sponsor organizations for social organizations in a related industry, discipline, or scope of activity (hereinafter referred to as sponsor organizations).
Where laws and administrative regulations have other stipulations regarding the supervision and management of social organizations, these other stipulations shall apply.

Chapter 2
Administrative Duties

Article 7

The registration and management bureaus of the State Council are responsible for the registration and management of national social organizations; the registration and management bureaus of local people’s governments are responsible for the management of the registration of local social organizations; social organizations spanning administrative districts are subject to the registration and management of the registration and management bureaus of the next higher level of the people’s government that covers both districts.

Article 8

If the registration and management bureau, sponsor organization, and social organization are not in one location, supervision and management work can be entrusted to the registration and management bureau in the place of residence of the social organization.

Chapter 3
Registration and Establishment

Article 9

An application to establish a social organization should be submitted, after receiving the sponsor organization’s examination and approval, to the registration and management bureau.

Article 10

In establishing social organizations, the following conditions should be met:

(1) Over 50 individual members or over 30 institutional members; in cases of both individual members and institutional members, the total number of members cannot be less than 50;
(2) An approved name and a corresponding organizational structure;
(3) A fixed residence;
(4) A number of full-time staff members corresponding to the organization’s professional activities.
(5) A legal source of property and funds. National social organizations should have over 100,000 RMB in activity funds, and local social organizations and social organizations spanning administrative districts should have over 30,000 RMB in activity funds.
(6) The ability to bear civil liability.

The name of a social organization must accord with law and regulations, and must not violate prevailing social morals. The name of social organizations must be in accordance with its scope of activity, distribution of members, and area of activity, and must accurately reflect its distinctive characteristics. National social organizations that are designated with the label of “China,” “National,” or “Chinese,” or similar words should be approved in accordance with related national regulations. Local social organizations cannot be designated with the label “China,” “National,” or “Chinese.”

Article 11

In applying for the establishment of a social organization, the applicant should submit the following documents to the registration management bureau:

(1) A letter of application for registration
(2) The sponsor organization’s approval document;
(3) A financial report, proof of the right to use a place of business;
(4) An overview of the applicant and proposed person in charge, and their ID cards;
(5) A draft of the charter.

Article 12

Within sixty days of receiving the documentation required in Article 11, the registration and management bureau should issue a decision on whether to approve the applicant's registration. If registration and management authorities refuse registration, the reason for refusal should be explained to the applicant.

Article 13

In the case of one of the following situations, the registration and management bureau should not grant approval:

(1) Evidence exists that the aim or scope of the activities of a social organization applying for registration is not in accordance with the stipulations of Article 4 of these regulations;
(2) There already exists a social organization in the same administrative district with the same or a similar scope of activity, and there is thus no need to set up another one;
(3) The applicant or proposed person in charge is currently or has previously had a criminal sentence depriving him of political rights, or does not possess full civil capacity;
(4) There has been falsification during the application process;
(5) There are other circumstances forbidden by laws or administrative regulations.

Article 14

Within six months of the day that the registration and management bureau grants approval, social organizations preparing to be established should hold a general assembly or member representative assembly to pass a charter, produce an executive body, responsible individuals in charge and legal representatives. During this period of preparation, it is not permitted to conduct any activities aside from preparation.

A legal representative of a social organization cannot simultaneously assume a position as a legal representative of another social organization.

Article 15

The charter of a social organization should include the following terms:

(1) Name, place of business;
(2) Aims, scope of activity and region of activity;
(3) Status, rights and duties of members;
(4) Democratic organizational management system, and the procedure by which the
executive body is produced;
(5) Requirements for the person in charge, and the procedure by which officials are
produced or recalled;
(6) Principles for management and use of property;
(7) Procedures for revising the charter;
(8) Procedures for ceasing operations and the handling of remaining assets;
(9) Other business that should be regulated by the charter.

Article 16

The registration and management bureau should complete all reviewing work within 30 days of receiving the complete application and all related documents for the social organization’s registration. Registration will be approved and a “Social Organization Legal Entity Registration Certificate” issued if there are no grounds for exclusion as covered by Article 13 of these regulations, if the preliminary process has been properly completed, and if the charter complies with requirements.
Registration items include:

(1) Name
(2) Residence
(3) Aim, scope of activity and region of activity;
(4) Legal representative;
(5) Activity funds;
(6) Sponsor organization.

For those that are not granted registration, the decision not to grant registration should be communicated to the applicant.

Article 17

According to stipulations in the law, within sixty days from the day that approval is granted, social organizations possessing status as a legal entity should file a record with the registration and management bureau. Within 30 days from the day that the documents are filed, the registration and management bureau should issue the “Social Organization Legal Entity Registration Certificate.”

Items put on record by the social organization, aside from those items listed in Article 16, should include the approval documents issued according to law by the sponsor organization.

Article 18

The social organization can use the “Social Organization Legal Entity Registration Certificate” to apply to have a seal made and open a bank account. Social organizations should file the style of their seal and their bank account number on record with the registration and management bureau.

Article 19

If, after being founded, a social organization wants to establish a branch office or representative offices, it should receive the review and approval of the sponsor organization, apply to the registration and management bureau, and submit documents related to the branch office or representative office’s name, scope of activity, location, and important responsible people.

The branch offices and representative offices of the social organization are a component of the social organization and do not have status as a legal entity. They should conduct activities and develop membership subject to the aims and scope of activity that is stipulated in the social organization’s charter and within the authorized limits approved for the social organization. Branch offices of a social organization may not establish new branch offices.

A social organization cannot establish a regional branch office.

Chapter 4
Modifying and Cancelling Registration

Article 20

If the registration details of a social organization or the information put on record need modification, an application should be made to the registration and management bureau to apply for modification of registration (below referred to as modification of registration) within 30 days from the day that the sponsor organization has examined and approved the request.

If social organizations revise their charter, they should report it to the registration and management bureau within 30 days from the day that the sponsor organization has examined and approved the revision.

Article 21

If one of the following circumstances occurs to a social organization, after examination and approval by the sponsor organization, an application should be made to the registration and management bureau for cancellation of registration and a cancellation record should be filed (below referred to as cancellation of registration):

(1) Completion of the stipulated aim in the social organization’s charter;
(2) Voluntarily disbanding;
(3) Division or merger;
(4) Termination because of another reason;

Article 22

Before handling cancellation of registration, social organizations should form a liquidation group to complete the work of liquidation under the leadership of the sponsor organization and relevant bureaus. During the period of liquidation, social organizations cannot conduct activities outside of liquidation.

Article 23

Social organizations should handle cancellation of registration procedures through the registration and management bureau within 15 days of the completion of the liquidation. In handling the cancellation of registration, a cancellation application with the signature of a legal representative should be submitted along with the examination documents of the sponsor organization and a written liquidation report.

When the registration and management bureau approves cancellation of registration, a cancellation certificate should be issued, and the registration certificate, seal and financial proof of the particular social organization turned over.

Article 24

If a social organization wishes to close its branch offices and representative offices, it may handle the cancellation procedures after receiving the review and approval of the sponsor organization.

If the registration of a social organization is cancelled, all branch offices and representative offices are closed.

Article 25

Residual property left after the closure of a social organization shall be handled in accordance with national regulations.

Article 26

Establishment, cancellation or modification to the name, location, or legal representative of a social organization will be announced by the registration and management bureau.

Chapter 5
Supervision and Management

Article 27

The registration and management bureau will perform the following supervision and management duties:

(1) Bearing responsibility for the registration or recording of the establishment, alteration, or cancellation of social organizations;
(2) Conducting an annual review of social organizations;
(3) Conducting a supervisory review as to problems of social organizations violating these regulations, and applying administrative sanctions to the activities of social organizations that violate these regulations.

Article 28

The sponsor organization should fulfill the following responsibilities when supervising and managing:

(1) Bearing responsibility for preparatory application of social organizations, and reviewing efforts to register, modify registration, or cancel registration;
(2) Supervising and guiding social organizations to observe the Constitution, laws, regulations and national policies, and conducting activities in accordance with their charter.
(3) Bearing responsibility for the annual review of social organizations;
(4) Assisting the registration and management bureau and other related bureaus in investigating and prosecuting the unlawful acts of social organizations.
(5) Guiding, along with relevant bureaus, the liquidation of social organizations.

When performing the duties listed in the prior clause, the sponsor organization cannot collect fees from the social organization.

Article 29

The origin of a social organization’s assets must be legitimate, and no work unit or individual may seize, divert or embezzle the assets of a social organization.

A social organization’s expenses, and income lawfully obtained under relevant national regulations from activities conducted in accordance with its charter, must be used for its scope of activity as defined by the organization’s charter and must not be distributed to the membership.

Contributions or donations received by social organizations must be in compliance with the principles and scope of activity stipulated in the organization’s charter, and must be used in compliance with purposes, methods and time as agreed with the donors. Social organizations must report to their sponsor organization regarding the receipt and use of contributions and donations, and they must use appropriate means to publicize relevant information to the public.

Salaries, insurance, and benefits of full-time employees of social organizations should generally follow national rules on public institutions.

Article 30

Social organizations must implement the national regulations regarding financial management systems, and accept the supervision of finance authorities. Those organizations whose assets come from state allocations of funds, public contributions or donations, should also accept the supervision of auditing authorities.

Before a social organization replaces a legal representative, the registration and management bureau and the sponsor organization should organize an audit of its financial affairs.

Article 31

Each year social organizations should send a work report for the previous year to its sponsor organization prior to March 31. After preliminary review and approval by the sponsor organization, the report must be sent to registration and management authorities before May 31 for the annual review. The work report must include: the status of the social organization in observing laws, regulations, and national policies, the status of carrying out registration procedures in accordance with these regulations, the status of activities conducted according to the charter, staff and organizational changes, and the status of financial management.

The registration and management bureau should simplify the contents of the annual review for social organizations which have, in accordance with Article 17 of these regulations, been issued with a “Social Organization Legal Entity Registration Certificate.”

Chapter 6

Article 32

The registration and management bureau must cancel the registration of social organizations that engage in fraudulent or deceptive activity when applying for registration or that have not conducted activities within one year of receiving the “Social Organization Legal Entity Registration Certificate.”

Article 33

If one of the following circumstances occurs to a social organization, the registration and management bureau must give a warning and order a correction, and can suspend activities for a defined period of time, as well as order the dismissal of the person directly responsible; in the event of more serious circumstances, the registration will be cancelled and if the act constitutes a crime, criminal punishment will be levied in accordance with the law:

(1) Altering, renting, or lending a “Social Organization Legal Entity Registration Certificate,” or renting or lending the seal of a social organization;
(2) Conducting activities outside the aims of the scope of activity specified in the charter;
(3) Refusing to accept supervision and inspection, or not accepting it according to the rules;
(4) Altering the registration without regard for the rules;
(5) Independently establishing a branch office or representative office without authorization, or carelessly managing branch offices and representative offices and causing serious consequences;
(6) Engaging in for-profit activities;
(7) Seizing, diverting or embezzling the assets of a social organization;
(8) Violating related national rules on collecting fees, raising money or accepting or using contributions or donations.

Illegal revenue or income obtained illegally that are gained through the activities covered in the above regulations, will be confiscated and a fine may also be imposed equivalent to between one and three times the value of the illegal revenue or between three and five times the value of income obtained illegally.

Article 34

The activities of social organizations that violate other laws and regulations will be dealt with by the relevant national bureau; if a relevant national office believes that the registration should be cancelled, the registration and management bureau is responsible for cancelling registration.

Article 35

In the cases of unapproved, independently conducted preparatory social organization activities, activities conducted in the name of a social organization without registration; or social organizations continuing to carry out activities in the name of a social organization whose registration has been cancelled; the registration and management bureau should ban the activity and confiscate illegal property. If the activity constitutes a crime, a criminal punishment will be levied in accordance with the law; if the activity does not constitute a crime, public order administrative punishment will be given.

Article 36

The registration and management bureau will temporarily confiscate the “Social Organization Legal Entity Registration Certificate” of social organizations that have been ordered to halt activities, as well as their seals and evidence of financial affairs.
Registration and management bureaus will take away the “Social Organization Legal Entity Registration Certificate” and seals of social organizations that have had their registration cancelled.

Article 37

Employees of registration management bureaus and sponsor organizations who abuse their power, engage in favoritism, or are derelict in their duty in such a way as to constitute a crime, shall receive criminal penalties. For those cases that do not constitute a crime, administrative punishments will be given in accordance with the law.

Chapter 7
Supplementary Articles

Article 38

The form of the “Social Organization Legal Entity Registration Certificate” shall be established by the Ministry of Civil Affairs.

It is not permitted to collect fees for performing the annual inspection of a social organization.

Article 39

In accordance with these regulations, social organizations founded prior to the implementation of these regulations, should apply for a new registration within one year of the day that these regulations come into effect.

Article 40

These regulations are effective from the day that they are issued. At the same time, “The Regulations on the Registration and Management of Social Organizations” issued by the State Council on October 25, 1989 are abolished.