Provisional Regulations on the Registration and Management of Civil, Non-Enterprise Institutions (CECC Full Translation)

The following is a translation prepared by the Congressional-Executive Commission on China of the "Temporary Regulations on the Registration and Management of Non-Governmental, Non-Commercial Enterprises" issued by the State Council on September 25, 1998. The Chinese text was retrieved from the Xinhuanet Web site on May 2, 2006. 

Temporary Regulations on the Registration and Management of Non-Governmental, Non-Commercial Enterprises

Issued by the State Council at the 8th Standing Committee session on September 25, 1998.

Order No. 251 of the People’s Republic of China’s State Council at the 8th Standing Committee session on October 25, 1998, to take effect from that date.

Chapter 1
General Principles

Article 1

These regulations are formulated to standardize the registration and management of non-governmental, non-commercial enterprises, to protect the lawful rights and interests of non-governmental, non-commercial enterprises, and promote a material socialist and intellectual civilization. 

Article 2

These regulations use non-governmental, non-commercial enterprises to refer to social groups engaged in non-profit social services, and that are organized by enterprises, social organizations, other social forces, and individual citizens with the use of non-state funds.  

Article 3

Non-governmental, non-commercial enterprises should receive the approval and examination of a sponsor organization, and register according to the stipulations in these regulations, in order to be founded.

Article 4

Non-governmental, non-commercial enterprises 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.  Non-governmental, non-commercial enterprises 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.  Non-governmental, non-commercial enterprises may not engage in profit-seeking business activities.

Article 5

The Ministry of Civil Affairs and local civil affairs offices at the county level and above are the people’s government bureaus for registration and management of non-governmental, non-commercial enterprises 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, and organizations authorized by them are sponsor organizations for non-governmental, non-commercial enterprises 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 non-governmental, non-commercial enterprises, the other stipulations shall apply.

Chapter 2
Jurisdiction

Article 6

The registration and management bureau is responsible for the registration and management of non-governmental, non-commercial enterprises examined and approved by the sponsor organization at the corresponding level. 

Article 7

If the registration and management bureau, sponsor organization and the non-governmental, non-commercial enterprises under its jurisdiction are not in one location, the supervision and management work can be entrusted to the registration and management bureau in the place of residence of the non-governmental, non-commercial enterprise.

Chapter 3
Registration

Article 8

In applying to register a non-governmental, non-commercial enterprise, the following conditions should be met:

(1) Examination and approval of the sponsor organization;
(2) A standard name and the necessary organizational structure;
(3) Personnel corresponding to the organization’s professional activities;
(4) Legitimate property corresponding to the organization’s professional activities;
(5) Necessary place of business.

The name of a non-governmental, non-commercial enterprise must be in accord with the regulations of the Ministry of Civil Affairs.  Their title may not contain the terms “China,” “National,” or “Chinese.”

Article 9

A non-governmental, non-commercial organization applying for registration should submit the following documents to the registration and management bureau:

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

Article 10

The charter of the non-governmental, non-commercial enterprise should include the following terms:

(1) Name, place of residence;
(2) Aims and scope of activity;
(3) Organizational management system;
(4) Procedures by which legal representatives or responsible individuals are produced and recalled;
(5) Principles for management and use of property;
(6) Procedures for revising the charter;
(7) Procedures for ceasing operations and the handling of remaining assets;
(8) Other matters needing to be handled by the charter’s regulations.

Article 11

Within sixty days of receiving a complete application to establish a non-governmental, non-commercial enterprise, the registration and management bureau should issue a decision on whether to approve the applicant's registration.

Registration should not be granted in the following circumstances, and the reason for refusal should be explained to the applicant:

(1) It is evident that according to the application for registration, the aim and scope of activity of the non-governmental, non-commercial enterprise is not in accordance with article 4 of these regulations;
(2) There has been falsification during the application for establishment;
(3) There already exists a non-governmental, non-commercial enterprise in the same administrative district with the same or a similar scope of activity, and there is thus no need to set up a new one;
(4) The proposed person in charge is currently or has previously had a criminal sentence depriving him of political rights, or does not posses full civil capacity;
(5) There are other circumstances forbidden by laws or administrative regulations.

Article 12

In the case of non-governmental, non-commercial enterprises that have been granted registration, the registration and management bureau will register the non-governmental, non-commercial organization’s name, place of residence, aim and scope of activity, legal representative or other person of responsibility, start-up funds, and sponsor organization; and in accordance with the law, will distribute the “Non-Governmental, Non-Commercial Enterprises Registration Certificate (Legal Entity),” “Non-Governmental, Non-Commercial Enterprises Registration Certificate (Partnership),” “Non-Governmental, Non-Commercial Enterprises Registration Certificate (Individual),” according to the method of civil responsibility.

In the case of non-governmental, non-commercial enterprises that, according to law and other government regulations, have already received an operational license, the registration and management bureau should simplify the procedures, and using the licensing documentation issued by the relevant supervisory authorities, issue the corresponding non-governmental, non-commercial enterprise registration certificate. 

Article 13

Non-governmental, non-commercial enterprises cannot establish branch offices.

Article 14

The non-governmental, non-commercial enterprise can use its certificate of registration to have a seal made and open a bank account.  Non-governmental, non-commercial enterprises should file the style of their seal and their bank account number on record with the registration and management bureau.

Article 15

If the registration details of a non-governmental, non commercial enterprise need modification, an application should be made to the registration and management bureau to apply for modification of registration within 30 days from the day that the sponsor organization has examined and approved the request. 

If non-governmental, non-commercial enterprises 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 16

If a non-governmental, non-commercial enterprise wishes to voluntarily disband, divide, merge, or cancel its registration for any other reason, it should cancel its registration with the registration and management bureau.

Before cancelling its registration, the non-governmental, non-commercial enterprise should establish a liquidation organization and complete the work of liquidation under the guidance of its sponsor organization and other relevant bureaus.  During the process of liquidation, the non-governmental, non-commercial enterprise cannot undertake any other activities.

Article 17

The legal representative or other responsible person should handle cancellation of registration procedures through the registration and management bureau within 15 days of the completion of liquidation.  In handling the cancellation of registration, a cancellation application must be submitted, along with the sponsor organization’s examination documents, and a liquidation report. 

When the registration and management bureau approves cancellation of registration, it will issue documents certifying that cancellation, and the registration documents, seal, and financial proof must be turned over.

Article 18

Establishment, cancellation, or modification to the name, location, or legal representative of a non-governmental, non-commercial enterprise will be announced by the registration and management bureau. 

Chapter 4
Supervision and Management

Article 19

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

(1) Bearing responsibility for the registration, alteration, or cancellation of non-governmental, non-commercial enterprises;
(2) Conducting an annual review of non-governmental, non-commercial enterprises;
(3) Conducting a supervisory review of the problems of non-governmental, non-commercial enterprises that violate these regulations, and applying administrative sanctions to the activities of non-governmental, non-commercial enterprises that violate these regulations;

Article 20

Sponsor organizations will perform the following supervision and management duties:

(1) Bearing responsibility for the examination prior to establishment, alteration, and cancellation of registration for non-governmental, non-commercial organizations;
(2) Supervising and guiding non-governmental, non-commercial enterprises 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 non-governmental, non-commercial enterprises;
(4) Assisting the registration and management bureau and other related bureaus in investigating and prosecuting the unlawful acts of non-governmental, non-commercial enterprises;
(5) Guiding, along with relevant bureaus, the liquidation of non-commercial, non-governmental enterprises.  When performing the duties listed in the prior clause, the sponsor organization cannot collect fees from the non-governmental, non-commercial enterprise.

Article 21

The origin of a non-governmental, non-commercial enterprise’s assets must be legitimate, and no work unit or individual may seize, divert, or embezzle the assets of a non-governmental, non-commercial enterprise.

A non-governmental, non-commercial enterprise’s 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 enterprise’s charter.

Contributions or donations received by non-governmental, non-commercial enterprises must be in compliance with the principles and scope of activity stipulated in the organization’s charter, and must be used in compliance with the purposes, methods, and times as agreed upon with the donors.  Non-governmental, non-commercial enterprises 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.

Article 22

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

Before a non-governmental, non-commercial enterprise replaces its legal representative or other person of responsibility, the registration and management bureau and the sponsor organization should organize an audit of its financial affairs.

Article 23

Each year non-governmental, non-commercial enterprises 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 reports must include: the status of the non-governmental, non-commercial enterprise 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 non-governmental, non-commercial enterprises which have, in accordance with article 12, clause 2 of these regulations, been issued a registration certificate.

Chapter 5
Penal Regulations

Article 24

The registration and management bureau must cancel the registration of non-governmental, non-commercial enterprises that engage in fraudulent or deceptive activity when applying for registration or if a sponsor organization has cancelled its approval. 

Article 25

In the event of one of the following circumstances, the registration and management bureau is in charge of issuing a warning, ordering a correction, or setting a deadline for the discontinuation of the specified activities; if circumstances are more serious, registration will be cancelled; and in the event of a criminal offense, a criminal punishment will be levied in accordance with the law:

(1) Altering, renting, or lending the registration certificate, or renting, or lending the seal of a non-governmental, non-commercial enterprise;
(2) Overstepping the aims and conducting activities outside the scope of activity stipulated in the charter:
(3) Refusing to accept or not allowing supervision and inspection according to regulations;
(4) Not handling modifications to the registration according to regulations;
(5) Establishing a branch office;
(6) Engaging in for profit business activities;
(7) Seizing, dividing, or diverting non-governmental, non-commercial assets or contributions or donations;
(8) Violating related national laws on collecting fees, raising money, or accepting and 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 26

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

Article 27

In the event that activities are conducted in the name of a non-governmental, non-commercial enterprise without authorization or prior registration approval; or non-governmental, non-commercial enterprises continue to carry out activities in the name of a non-governmental, non-commercial enterprise 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, a public order administrative punishment will be given. 

Article 28

The registration and management bureau will temporarily confiscate the registration certificate, seals, and evidence of financial affairs of non-governmental, non-commercial enterprises that have been ordered to halt activities.  Registration and management bureaus will take away the registration certificate and seals of non-governmental, non-commercial enterprises that have had their registration cancelled. 

Article 29

In the event that the personnel of registration and management bureaus and sponsor organizations abuse their authority, engage in favoritism or dereliction of duty, thereby constituting a criminal offense, a criminal punishment will be levied in accordance with the law; in the event that it does not constitute a criminal offense, administrative punishments will be levied in accordance with the law. 

Chapter 6

Article 30

The form of the “Non-Governmental, Non-Commercial Enterprise 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 non-governmental, non-commercial enterprise.

Article 31

In accordance with these regulations, non-governmental, non-commercial enterprises 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 32

These regulations are effective from the day that they are issued.