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Introduction of Social Organization in China

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Social organization refers to a non-profit organization (“NPO”) formed voluntarily by Chinese citizens to carry out activities in accordance with its articles of association to realize the common wishes of its members.

  1. Characteristics of social organization

    (1) Social organization should possess the legal personality;
    (2) Social organization may not engage in profitable activities;
    (3) Social organization must comply with laws, regulations and relevant national policies, and may not harm national interests, social public interests, and the legitimate rights and interests of other organizations and citizens;
    (4) The branches and representative offices of social organization are part of social organization and do not have legal personality;
    (5) Social organization may not establish regional branches;
    (6) The branches of social organization shall not establish any more branches;
    (7) The legal representative of a social organization may not concurrently serve as the legal representative of other social organizations;
    (8) Social organization shall submit its work report of the previous year to the competent business authority before March 31 of each year, and after receiving initial approval from the competent business authority, submit it to the registration and administration authority before May 31 for annual inspection.

  2. Establishment of social organization

    An application for the establishment of a social organization in China shall be subject to the approval of its competent business authority, and the initiator shall apply for registration with the registration and administration authority. To establish a social organization, the following conditions shall be met:

    (1) Having more than 50 individual members or more than 30 collective members; if a social organization consists of both individual and collective members, the total number of members shall not be less than 50;
    (2) Having a standardized name and corresponding organizational structure;
    (3) Having a stable domicile;
    (4) Having dedicated staff who are suitable for the business activities;
    (5) Having legal assets and sources of funds, national social organizations have more than 100,000 yuan of activity funds, and local social organizations and cross-administrative social organizations have more than 30,000 yuan of activity funds;
    (6) Having the ability to independently bear civil liability.

  3. Name of social organization

    The name of a social organization shall conform to the provisions of laws and regulations and shall not violate social morals and customs. The name of a social organization shall be consistent with its business scope, member distribution, and activity area, accurately reflecting its characteristics. Where the name of a national social organization is crowned by the words "China", "National", "Zhonghua", etc., approval shall be obtained in accordance with the relevant regulations of the State, and the name of a local social organization may not be crowned by the words mentioned above.

  4. Change of registration for social organization

    The registered items of a social organization include name, domicile, purpose, business scope, activity area, legal representative, activity fund and the competent business authority. Where there is a change in the registered item, it shall apply to the registration and administration authority for change of registration within 30 days from the date of approval by the competent business authority.

  5. Deregistration of social organization

    Under any of the following circumstances, a social organization shall apply to the registration and administration authority for deregistration after approval by the competent business authority:
    (1) Having completed the purposes stipulated in the articles of association of the social organization;
    (2) Dissolved on its own;
    (3) Divided or merged;
    (4) Termination due to other reasons.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advice and services in respect of the formation and registration of company, application for various business licenses and permits, any compliance, tax planning, audit, and accounting in China. Please call and talk to our professional consultants for details.

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All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

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