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PROVISIONAL REGULATIONS FOR THE REGISTRATION ADMINISTRATION OF PEOPLE-RUN NON-ENTERPRISE UNITS

Category  SOCIAL ORGANIZATIONS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-10-25 Effective Date  1998-10-25  

Provisional Regulations for the Registration Administration of People-Run non-Enterprise Units



Chapter I  Genereal Provisions
Chapter II  Jurisdiction
Chapter III  Registration
Chapter IV  Supervision and Administration
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 251 of the State Council of the People's

Republic of China on October 25, 1998)
Chapter I  Genereal Provisions

    Article 1  These Regulations are formulated with a view to standardizing
the registration administration of people-run non-enterprise units, protecting
the legitimate rights and interests of people-run non-enterprise units and
promoting the building of socialist material civilization and spiritual
civilization.

    Article 2  The people-run non-enterprise units referred to in these
Regulations mean enterprise institutions, societies and other social forces
as well as social organizations established with non-state-owned assets by
individual citizens for non-profit social services.

    Article 3  Establishment of a people-run non-enterprise unit shall be
subject to the examination and approval of its competent business department
and registration pursuant to the provisions of these Regulations.

    Article 4  People-run non-enterprise units shall abide by the
Constitution, laws, regulations and state policies, shall not oppose the
fundamental principles enunciated in the Constitution, shall not endanger
the unification, security and national solidarity of the state, shall not
harm state interests, public interest of society as well as the legitimate
rights and interests of other social organizations and citizens and shall
not violate social ethics and custom.

    People-run non-enterprise units shall not engage in profit-making
business operations.

    Article 5  The civil affairs department under the State Council and      
civil affairs departments of local people's governments at all levels above
the county level are organs of registration administration for people-run
non-enterprise units of people's governments at the corresponding level
(hereinafter referred to as registration administration organs for
abbreviation).

    The departments concerned under the State Council and the departments
concerned of local people's governments at all levels above the county level,
and organizations authorized by the State Council or local people's
governments at all levels above the county level are the competent business
units for people-run non-enterprise units of relevant trades within their
business scopes(hereinafter to referred to as competent business units
for abbreviation).

     Where laws and administrative regulations have separate provisions
for the supervision and administration of people-run non-enterprise units,
enforcement shall be carried out pursuant to the provisions of relevant
laws and administrative regulations.
Chapter II  Jurisdiction

    Article 6  Registration administration organs shall be responsible for
the registration administration of the people-run non-enterprise units
examined and approved by the competent business units at corresponding
levels.

    Article 7  Where the registration administration organ, the competent
business unit and the location of the people-run non-enterprise unit
under their jurisdiction are not in the same locality, the registration
administration organ and the competent business unit of the locality
wherein the people-run non-entrprise unit is located may be entrusted
with the responsibility of the work of supervision and administration
within the entrusted scope.
Chapter III  Registration

    Article 8  An application for the registration of a people-run
non-enterprise unit shall meet the following requirements:

    (1) It has been subject to the examination and approval of the competent
business unit;

    (2) It has a standardized name and necessary organization;

    (3) It has employees commensurate with its business operations;

    (4) It has lawful properties commensurate with its business operations;
and

    (5) It has a necessary site.

    The name of a people-run non-enterprise unit shall conform to the
provisions of the civil affairs department under the State Council and
shall not use such words as "China", "National" or "Chinese" before it.

    Article 9  The sponsor(s) shall present the following documents to the
registration administration organ for the application for registration of a people-run non-enterprise unit:

    (1) an application letter for registration;

    (2) the approval document of the competent business unit;

    (3) certification of the site use right;

    (4) the capital verification report;

    (5) basic information and identification of the person(s)-in-charge-
designate; and

    (6) the draft of the articles of asociation.

    Article 10  The articles of association of a people-run non-enterprise
unit should contain the following particulars:

    (1) name and site;

    (2) aims and business scope;

    (3) rules for organization and administration;

    (4) procedures for the election(appointment) and dismissal of the legal
representative or person(s)-in-charge;

    (5) principles of asset management and disposal;

    (6) procedures for the revision of the articles of association;

    (7) procedures for termination and disposal of assets upon termination;
and

    (8) other matters the provision of which is required by the articles of association.

    Article 11  The registration administration organ shall, within 60 days
starting from the date of receipt of all the effective documents for the
application for registration of the establishment, make a decision on
the approval of registration or non-registration.

    Where there is any of the following circumstances, the registration
administration organ shall not accord the registration, and explain the
reasons to the applicant:

    (1) There are bases to prove that the aims and business scope of the people-run non-enterprise unit applying for registration do not
accord with the provisions of Article 4 of these Regulations;

    (2) That it has practised fraud in applying for establishment;

    (3) There is no need for its establishment when there already exists
a people-run non-enterprise unit with identical or similar business scope
within the same administrative area;

    (4) Its person(s)-in-charge-designate is(are) under or has(have) been
subjected to criminal penalty of deprivation of political rights, or
have no complete civil capacity; and

    (5) It has other circumstances prohibited under laws and administrative
regulations.

    Article 12  A people-run non-enterprise unit approved for registration
shall be registered of the name, site, aims and business scope, legal
representative or persosn(s)-in-charge, the start-up capital, the
competent business unit of the people-run non-enterprise unit by the
registration administration organ, and in accordance with the different modes
of bearing civil responsibilty according to law, be respectively issued the
certificate of registration for people-run non-enterprise unit(legal entity),
the certificate of registration for people-run non-enterprise unit
(partnership) or the certificate of registration for people-run non-enterprise
unit(individual).

    For people-run non-enterprise units which have already obtained
corresponding business licences upon examination and verification or
registration of the relevant competent department according to law
pursuant to the provisions of laws and other administrative regulations,
the registration administration organ should simplify the formalities of registration and issue corresponding certificates of registration for
people-run non-enterprise units on the strength of certification of business
licences issued by the relevant competent departments.

    Article 13  A people-run non-enterprise unit shall not set up a branch
(branches).

    Article 14  A people-run non-enterprise unit shall, on the strength of the registration certificate, apply for the engraving of its seal(stamp)
and opening of a bank account. The people-run non-enterprise unit shall
submit the sample of the seal(stamp) and number of its bank account to
the registration administration organ for the record.

    Article 15  In the event of necessity of effecting a change in the
particulars of registration of a people-run non-enterprise unit, an
application for change in registration shall be filed with the registration
administration organ within 30 days starting from the date of examination
and consent of the competent business unit.

    Revision of the articles of association of a people-run non-enterprise
unit shall, within 30 days starting from the date of examination and consent
of the competent business department, be submitted to the registration
administration organ for verification and approval.

    Article 16  For the dissolution on its own, separation or amalgamation
of a people-run non-enterprise unit, or where nullification of the
registration is called for due to other reasons, nullification of registration
shall be completed with the registration administration organ.

    The people-run non-enterprise unit shall, prior to the processing of nullification of registration, set up a settlement organization and
complete settlement under the guidance of the competent business unit and
other relevant organs. The people-run non-enterprise unit shall not carry
out activities other than settlement during settlement.

    Article 17  The legal representative or person(s)-in-charge of a
people-run non-entrprise unit shall, within 15 days starting from the date of completion of the settlement, go through the nullification of registration
at the registration administration organ. For the processing of nullification
of registration, an application for the nullification of registration,
examination document of the competent business unit and the settlement
report shall be presented.

    Where approval is granted for the nullification of registration
by the registration administration organ, the certification of nullification
shall be issued and the certificate of registration, seal(stamp) and
financial vouchers withdrawn by it.

    Article 18  The registration administration organ shall make an
announcement with respect to the establishment, nullification as well as
change in name, site, legal representtive or person(s)-in-charge of a people-
run non-entrprise unit.
Chapter IV  Supervision and Administration

    Article 19  A registration administration organ shall perform the
following functions and responsibilites of supervision and administration:

    (1) It shall be responsible for the registration of the establishment,
change and nullification of people-run non-enterprise units;

    (2) It shall conduct annual inspection of people-run non-enterprise
units; and

    (3) It shall carry out supervision and inspection of questions of people-run non-enterprise units in violation of these Regulations and
impose administrative penalty on people-run non-enterprise units
for acts in violation of these Regulations.

    Article 20  A competent business unit shall perform the following
functions and responsibilities of supervision and administration:

    (1) It shall be responsible for the examination prior to the
registration of establishment, change and nullification of people-run
non-enterprise units;

    (2) It shall conduct supervision and provide guidance for people-run
non-enterprise units in abiding by the Constitution, laws, regulations and
state policies and carrying out of activities pursuant to the articles of asociation;

    (3) It shall be responsible for the preliminary examination of annual inspection of people-run non-enterprise units;

    (4) It shall assist the registration administration organ and other
departments concerned in the investigation and handling of illegal acts
of people-run non-enterprise units; and

    (5) It shall, in conjunction with relevant organs, provide guidance
to people-run non-enterprise units in settlement matters.

    The competent business unit shall not, in performing the functions and
responsibilities prescribed in the preceding paragraph, collect fees from
people-run non-enterprise units.

    Article 21  The sources of assets of people-run non-enterprise units must
be legitimate. No unit or individual shall encroach on, share(divide) in
private or divert the assets of a people-run non-enterprise unit to
other purposes.

    Lawful income accrued from activities of people-run non-enterprise units
carried out pursuant to the provisions of the articles of association and
relevant state provisions must be used for business operations prescribed by
the articles of association.

    Acceptance of donation(s) and subsidy(ies) by people-run non-enterprise
units must accord with the aims and business scope prescribed in the articles
of association and must be used in accordance with the time limit, mode and
legitimate uses agreed on with the donator(s) and contributor(s). People-run
non-enterprise units shall submit a report to the competent business units
on the acceptance and use of donation(s) and subsidy(ies), and the relevant
information shall be made public in society in an appropriate manner.

    Article 22  People-run non-enterprise units must implement the financial
management rules prescribed by the state and accept the supervision of financial departments; where sources of assets are of state subsidy or
social donation or contribution, they shall likewise be subject to the
supervision of audit organs.

    In the event of change of the legal representative or the person(s)-in-
charge of a people-run non-enterprise unit, the registration administration
organ and the competent business unit shall organize financial auditing of the unit.

    Article 23  People-run non-enterprise units should, prior to March 31
of each year, submit a work report of the preceding year to the competent
business units which shall, upon preliminary examination and consent of the
competnet business units, be submitted to the registration administration
organs before May 31. Contents of the work report shall include: information
on the compliance of laws, regulations and state policies of the people-run
non-enterprise unit, information on the completion of formalities of
registration pursuant to these Regulations, information on the conduct of activities in accordance with the articles of association and information on
changes in personnel and organization as well as information on financial
management.

    For people-run non-enterprise units that have been issued certificates of
registration pursuant to the provisions of the Second Paragraph of Article
12 of these Regulations, the registration administration organs shall simplify
the contents of its annual inspection.
Chapter V  Penalty Provisions

    Article 24  A people-run non-enterprise unit that practises fraud and
obtains registration by deceitful means in application for registration, or
the approval of which has been revoked by the competent business unit
shall be revoked of its registration by the registration administration
organ.

    Article 25  Any people-run non-enterprise unit that has any of the
following cirsumstances shall be administered a warning , ordered to make
a rectification and to stop activities within a specified time period by
the registration administration organ; where there are serious circumstances,
the registration shall be revoked; where a crime has been constituted,
criminal liability shall be investigated according to law:

    (1)alteration, renting out and lending of the certificate of registration
of a people-run non-enterprise unit, or renting out and lending of the seal
(stamp) of a people-run non-enterprise unit;

    (2)conducting of activities beyond the aims and business scope laid down
in its articles of association;

    (3)refusal to accept supervision and inspection or accept supervision and
inspection not in accordance with the provisions;

    (4)completion of change in registration not in accordance with the
provisions;

    (5)establishment of a branch or branches;

    (6)engagement in profit-making business operations;

    (7)encroachment on, sharing in private and diversion to other purposes
of the assets or donation(s) and subsidy(ies) of a people-run non-enterprise
unit; and

    (8)collection of charges, fund raising or acceptance and use of
donation(s) and subsidy(ies) in contravention of relevant state provisions.

    Amount from illegal operations or illegal income from acts prescribed in
the preceding paragraph shall be confisticated and a fine of more than 100%
less than 300% of the amount from illegal operations or a fine of more than
300% less than 500% of the illegal income may concurrently be imposed.

    Article 26  A people-run non-enterprise unit whose acctivities are in
violation of other laws and regulations shall be dealt with by the state
organ concerned according to law; where the state organ concerned holds
that the registration shall be revoked, the registration shall be revoked
by the registration administration organ.

    Article 27  Whoever engages in activities in the name of a people-run
non-enterprise unit on his/her own without registration, or a people-run
non-enterprise unit whose registration has been revoked continues to
carry out activities in the name of the people-run non-enterprise unit
shall be banned by the registration administration organ and confisticated
of the illegal properties; where a crime has been constituted, criminal
liability shall be investigated according to law; where a crime has not
been constituted, penalty for public security administration shall be
imposed.

    Article 28  A people-run non-enterprise unit that has been ordered to
stop operations within a specified time period, its certificate of
registration, seal(stamp) and financial vouchers shall be sealed up
for safekeeping by the registration administration organ.

    A people-run non-enterprise unit whose registration has been revoked,
its certificate of registration and seal(stamp) shall be taken over by
the registration administration organ.

    Article 29  Any staff member of a registration administration organ or
a competent business unit whose abuse of power, malpractices for selfish
gains and negligence of duty constitute a crime shall be investigated for
criminal liability according to law; where a crime has not be constituted,
administrative sanctions shall be imposed according to law.
Chapter VI  Supplementary Provisions

    Article 30  The format of the certificate of registration of people-run
non-enterprise unit shall be drawn up by the civil affairs department under
the State Council.

    No fee shall be collected for the annual inspection of people-run
non-entrprise units.

    Article 31  Those people-run non-enterprise units established prior to
the coming into force of these Regulations shall, within one year starting
from the date of coming into force of these Regulations, apply for
registration pursuant to the relevant provisions of these Regulations.

    Article 32  These Regulations shall enter into force as of the date
of promulgation.



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