Law of China on the Administration of Activities of Overseas Non-Governmental Organizations within the Territory of China

· Document Number：Order No. 44 of the President of the People's Republic of China

· Area of Law： Public Security

· Level of Authority： Laws

· Date issued：04-28-2016

· Effective Date：01-01-2017

· Status： Revised

· Issuing Authority： Standing Committee of the National People's Congress

Order of the President of the People's Republic of China
(No. 44)
Law of China on the Administration of Activities of Overseas Non-Governmental Organizations within the Territory of China, as adopted at the 20th Session of the Standing Committee of the Twelfth National People's Congress of the People's Republic of China on April 28, 2016, is hereby issued and shall come into force on January 1, 2017.
President of the People's Republic of China: Xi Jinping
April 28, 2016
Law of the People's Republic of China on the Administration of Activities of Overseas Non-Governmental Organizations within the Territory of China
(Adopted at the 20th Session of the Standing Committee of the Twelfth National People's Congress of the People's Republic of China on April 28, 2016)
Table of Contents
Chapter I General Provisions
Chapter II Registration and Recordation
Chapter III Activities Standards
Chapter IV Facilitation Measures
Chapter V Supervision and Administration
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is developed to regulate and guide the activities conducted by overseas non-governmental organizations (“NGOs”) within the territory of China, protect their lawful rights and interests, and promote exchanges and cooperation.
Article 2 This Law shall apply to overseas NGOs conducting activities within the territory of China.
For the purpose of this Law, “overseas NGOs” means non-profit, non-governmental social organizations legally formed abroad, including foundations, social groups, and think-tanks, among others.
Article 3 Overseas NGOs may conduct activities conducive to the development of public welfare undertakings in such fields as economy, education, science and technology, culture, health, sports and environmental protection and in such aspects as poverty alleviation and disaster relief in accordance with this Law.
Article 4 Overseas NGOs shall be protected by law when they conduct activities within the territory of China in accordance with the law.
Article 5 Overseas NGOs conducting activities within the territory of China shall abide by Chinese laws, and may neither endanger China's national unity, security and ethnic solidarity nor damage China's national interests, public interests and the lawful rights and interests of citizens, legal persons and other organizations.
Overseas NGOs shall not engage in or fund for-profit activities or political activities within the territory of China, orillegally engage in or fund religious activities.
Article 6 The public security department of the State Council and the public security organs of provincial people's governments are the registration administrative authorities for overseas NGOs conducting activities within the territory of China.
The relevant departments and entities of the State Council and the relevant departments and entities of provincial people's governments are the competent businessauthorities for overseas NGOs conducting activities within the territory of China.
Article 7 The public security organs of the people's governments at or above the county level and the relevant departments shall supervise, administer and provide services for the activities conducted by overseas NGOs within the territory of China in accordance with the law and within the scope of their respective functions.
The state shall establish a coordination mechanism for the supervision and administration of overseas NGOs to research, coordinate and solve major issues in the supervision and administration of and service facilitation for the activities conducted by overseas NGOs within the territory of China.
Article 8 The state shall commend the overseas NGOs that have made outstanding contributions to the development of China's public welfare undertakings.
Chapter II Registration and Recordation
Article 9To conduct activities within the territory of China, overseas NGOs shall undergo registration formalities for the formation of representative offices in accordance with the law. Where any overseas NGOs that fail to undergo registration formalities for the formation of representative offices need to conduct temporary activities within the territory of China, they shall undergo recordation formalities in accordance with the law.
Overseas NGOs that fail to undergo registration formalities for the formation of representative offices or that conduct temporary activities without undergoing recordation formalities shall not conduct or conduct in disguised form activities within the territory of China, or authorize or fund directly or in disguised form any other entity or individual inside China to conduct activities within the territory of China.
Article 10 Overseas NGOs that meet the following conditions may, according to their business scope, activity areas and the needs for conducting activities, apply for registration of formation of representative offices within the territory of China:
(1) They are legally formed abroad.
(2) They are capable of assuming civil liabilities independently.
(3) The purposes and business scope provided in their articles of association are conducive to the development of public welfare undertakings.
(4) They have existed abroad for two years or longer and substantively conduct activities.
(5) Other conditions as prescribed by laws and administrative regulations.
Article 11 Overseas NGOs that apply for the registration of formation of representative offices shall obtain approval from the competent business authorities.
The directory of competent business authorities shall be announced by the public security department of the State Council and the public security organs of provincial people's governments in conjunction with the relevant departments.
Article 12 An overseas NGO shall, within 30 days from the date when it obtains the approval from the competent business authority, apply to the registration administrative authority for the registration of formation of a representative office. An applicant for the registration of formation of a representative office shall submit the following documents and materials to the registration administrative authority.
(1) An application form.
(2) The certification documents and materials for its conformity with the provisions of Article 10 of this Law.
(3) The identity certificate, resume and certificate or declaration of no criminal recordof the chief representative of the representative office to be formed.
(4) Certification materials on the domicile of the representative office to be formed.
(5) Certification materials on fund sources.
(6) Approval document issued by the competent business authority.
(7) Other documents and materials as prescribed by laws and administrative regulations.
When examining the application of an overseas NGO for the formation of a representative office, the registration administrative authority may organize experts to conduct evaluation as needed.
The registration administrative authority shall, within 60 days from the date of acceptance of the application, make a decision on approving or disapproving the registration.
Article 13 Where the registration of the representative office of an overseas NGO is approved, the registration administrative authority shall issue a registration certificate thereto, and announce it to the public. The registration items shall include:
(1) name;
(2) domicile;
(3) business scope;
(4) activity areas;
(5) chief representative; and
(6) the competent business authority.
The representative offices of overseas NGOs shall, upon the strength of registration certificates, undergo tax registration formalities, carve official seals, open bank accounts with the banks within the territory of China, and submit the photocopies of tax registration certificates, patterns of their official seals and bank accounts to the registration administrative authorities for recordation.
Article 14 Where the representative office of an overseas NGO needs to modify the registration items, it shall, within 30 days from the date of approval by the competent business authority, apply to the registration administrative authority for registration modification.
Article 15 Under any of the following circumstances, the registration administrative authority shall cancel the registration of the representative office of an overseas NGO, and announce it to the public:
(1) The overseas NGO cancels the representative office.
(2) The overseas NGO is terminated.
(3) The representative office of the overseas NGO is deregistered or its registration certificate is revoked in accordance with the law.
(4) The representative office of the overseas NGO is terminated for any other reason.
After the registration of the representative office of an overseas NGO is cancelled, the overseas NGO that forms the representative office shall properly handle the follow-up matters. The representative office of an overseas NGO has no legal person status, and the relevant legal liabilities it involves shall be assumed by the overseas NGO.
Article 16 Where overseas NGOs that have not formed representative offices within the territory of China intend to conduct temporary activities within the territory of China, they shall cooperate with China's state organs, people's organizations, public institutions, and social organizations (hereinafter referred to as “Chinesepartners”).
Article 17 Where an overseas NGO conducts any temporary activities, its Chinese partner shall undergo approval formalities in accordance with the provisions of the state, and undergo recordation formalities with the registration administrative authority at the place where it is located 15 days before the temporary activity is conducted. The following documents and materials shall be submitted for the recordation:
(1) Certification documents and materials on the legal formation of the overseas NGO.
(2) Written agreement signed between the overseas NGO and its Chinese partner.
(3) The name, purposes, areas and duration of the temporary activity and other relevant materials.
(4) Certification materials on project funds and fund sources and the bank account of the Chinese partner.
(5) Approval documents for the Chinese partner.
(6) Other documents and materials as prescribed by laws and administrative regulations.
Where any temporary activity needs to be conducted for disaster relief or rescue or under any other emergency circumstance, the time limit for recordation shall not be subject to the provisions of the preceding paragraph.
The duration of a temporary activity shall generally not exceed one year. Where it is necessary to extend the period, the recordation formalities shall be undergone anew.
Where the registration administrative authority deems that the recorded temporary activity fails to comply with the provisions of Article 5 of this Law, it shall promptly notify the Chinese partner to stop the temporary activity.
Chapter III Activities Standards
Article 18 The representative office of an overseas NGO shall conduct activities in the registered name and within the registered business scope and activity areas.
An overseas NGO shall not establish any branch within the territory of China, except as otherwise provided for by the State Council.
Article 19 The representative office of an overseas NGO shall, prior to December 31 of each year, submit an activity plan for the next year including such content as project implementation and use of funds to the competent business authority, and, within ten days after obtaining approval from the competent business authority, submit it to the registration administrative authority for recordation. Where the activity plan needs to be adjusted under any special circumstance, it shall report to the registration administrative authority for recordation in a timely manner.
Article 20 Overseas NGOs shall not impose any additional conditions that violate Chinese laws and regulations on their Chinese partners and beneficiaries when they conduct activities within the territory of China.
Article 21 The funds for the activities conducted by overseas NGOs within the territory of China shall include:
(1) overseas funds from lawful sources;
(2) interest on bank deposits within the territory of China; and
(3) other funds legally acquired within the territory of China.
Overseas NGOs shall not acquire or use the funds other than those as prescribed in the preceding paragraph when they conduct activities within the territory of China.
Overseas NGOs and their representative offices shall not conduct fundraising activities within the territory of China.
Article 22 Overseas NGOs that have formed representative offices shall manage the funds to be used within the territory of China through their representative offices' bank accounts that have been recorded by the registration administrative authorities.
Overseas NGOs that conduct temporary activities shall manage the funds to be used within the territory of China through the bank accounts of their Chinese partners, and separately keep accounts andearmark such funds for specified purposes.
Overseas NGOs and their Chinese partners and individuals shall not conduct receipts and payments of project activity funds within the territory of China in any other form without through the bank accounts as prescribed in the preceding two paragraphs.
Article 23 Overseas NGOs shall use funds according to the registered business scope and activity areas of their representative offices or the agreements with their Chinese partners.
Article 24 The representative offices of overseas NGOs shall implement the unified accounting system of China, and hire the accounting personnel with qualifications for engaging in accounting in China to conduct accounting in accordance with the law. Financial accounting reports shall be audited by the accounting firms within the territory of China.
Article 25 Overseas NGOs conducting activities within the territory of China shall handleforeign exchange receipts and paymentsin accordance with the provisions of China on foreign exchange administration.
Article 26 The representative offices of overseas NGOs shall handle such matters as tax registration, filing of tax returns and tax payment in accordance with the law.
Article 27 The representative offices of overseas NGOs shall hire employees within the territory of China in accordance with laws and administrative regulations, and submit the information on the employees they hire to the competent business authorities and registration administrative authorities for recordation.
Article 28 The representative offices of overseas NGOs and the overseas NGOs that conduct temporary activities shall not develop members within the territory of China, except as otherwise provided for by the State Council.
Article 29 The representative office of an overseas NGO shall have a chief representative, and may have one to three representatives as business requires.
A person that falls under any of the following circumstances shall not serve as a chief representative or a representative:
(1) The person has no civil conduct capacity or has limited civil conduct capacity.
(2) The person has any criminal record.
(3) The person is the chief representative or representative of a representative office which has been deregistered or of which the registration certificate has been revoked in accordance with the law, and it has been not more than five years since the date of deregistration or revocation.
(4) Other circumstances as prescribed by laws and administrative regulations.
Article 30 Overseas NGOs carrying out temporary activities shall conduct activities in their recorded names.
Overseas NGOs and their Chinese partners shall submit in writing the information on the activities and use of funds, among others, to the registration administrative authorities within 30 days after the conclusion of the temporary activities.
Article 31 The representative office of an overseas NGO shall, prior to January 31 of each year, submit the work report for the previous year to the competent business authority, and, after the competent business authority issues opinions, submit it to the registration administrative authority prior to March 31 for annual inspection.
An annual work report shall include the audited financial accounting report, the information on the activity conducted, and the personnel and institutional changes, among others.
The representative office of an overseas NGO shall publicly disclose its annual work report on the unified website of the registration administrative authority.
Article 32 No entity or individual within the territory of China may accept the authorization or financial assistance of an overseas NGO which has not registered its representative office or conducts any temporary activity without undergoing recordation formalities to act as an agent openly or in disguised form for the overseas NGO to conduct activities within the territory of China.
Chapter IV Facilitation Measures
Article 33 The state shall guarantee and support the activities conducted in accordance with the law by overseas NGOs within the territory of China. The relevant departments of the people's governments at all levels shall provide necessary facilitation and services for overseas NGOs to conduct activities in accordance with the law within the territory of China.
Article 34 The public security department of the State Council and the public security organs of provincial people's governments shall, in conjunction with the relevant departments, develop the catalogues of activity fields and projects of overseas NGOs, and issue directories of the competent business authorities, so as to provide guidance for overseas NGOs to conduct activities.
Article 35 The relevant departments of the people's governments at or above the county level shall provide policy consultation and activity guidance services for overseas NGOs in accordance with the law.
Registration administrative authorities shall, through unified websites, publish the procedures for overseas NGOs' application for the formation of representative offices and for undergoing recordation formalities for temporary activities for the inquiry by overseas NGOs.
Article 36 The representative offices of overseas NGOs shall enjoy tax preferences and other policies in accordance with the law.
Article 37 No fees may be charged for the annual inspection of the representative offices of overseas NGOs.
Article 38 Overseas persons among the chief representatives and representatives of the representative offices of overseas NGOs may, upon the strength of registration certificates and representative certification documents, among others, undergo the employment and other work formalities.
Chapter V Supervision and Administration
Article 39 Overseas NGOs conducting activities within the territory of China shall accept the supervision and administration of public security organs, relevant departments and the competent business authorities.
Article 40 The competent business authorities shall take charge of putting forward opinions on overseas NGOs' formation of representative offices, modification of registration items and annual work reports, direct and supervise the conduct of activities by overseas NGOs and their representative offices in accordance with the law, and assist public security organs and other departments in investigating and punishing the illegal acts of overseas NGOs and their representative offices.
Article 41 Public security organs shall take charge of the registration and annual inspection of representative offices of overseas NGOs, the recordation of the temporary activities of overseas NGOs, and investigation and punishment of the illegal acts of overseas NGOs and their representative offices.
Where the public security organ finds any suspected violation of this Law during its performance of supervision and administration functions, it may take the following measures in accordance with the law:
(1) Holding interviews with the chief representative and other persons in charge of the representative office of the overseas NGO.
(2) Conducting onsite inspection by entering the domicile and activity place of the overseas NGO within the territory of China.
(3) Inquiring of the entities and individuals related to the event under investigation, and requiring them to make explanations of the matters related to the event under investigation.
(4) Consulting and copying the documents and materials related to the event under investigation, and sealing up the documents and materials that are likely to betransferred, destroyed, concealed or altered.
(5) Seizing or detainingthe places, facilities or property suspected of being involved in illegal activities.
Article 42 Public security organs may inquire into the bank accounts of the entities and individuals related to the events under investigation, and the relevant financial institutions and financial regulatory authorities shall give support thereto. The public security organ may, upon the approval of the person in charge of the public security organ of the people's government at or above the level of a districted city, request the people's court to freeze the funds in the bank accounts suspected of being involved in illegal activities. The funds in the bank accounts suspected of being involved in crimes shall be frozen in accordance with the provisions of the Criminal Procedure Law of the People's Republic of China.
Article 43 The national security, diplomatic and foreign affairs, public finance, financial supervision and administration, customs, taxation, foreign experts and other departments shall, according to their respective functions, supervise and administer overseas NGOs and their representative offices in accordance with the law.
Article 44 The anti-money laundering administrative department of the State Councilshall supervise and administer in accordance with the law the compliance with the provisions of anti-money laundering and counterterrorism financing laws by the overseas NGOs' representative offices and Chinese partners as well as the entities and individuals within the territory of China that accept the funds of overseas NGOs in the process of opening and use of bank accounts.
Chapter VI Legal Liability
Article 45 Where the representative office of an overseas NGO, or an overseas NGO conducting temporary activities or its Chinese partner falls under any of the following circumstances, the public security organ of the people's government at or above the level of a districted city shall give it a warning or order it to stop the activities within a prescribed time limit, and confiscate the illegal property and illegal income. If the circumstances are serious, the registration administrative authority shall revoke the registration certificate or ban the temporary activities.
(1) Failing to handle registration modification, recordation or other relevant matters as required.
(2) Failing to conduct activities in the registered or recorded name and according to the registered or recorded business scope or activity areas.
(3) Engaging in or funding for-profit activities, conducting fundraising activities or developing members in violation of the relevant provisions.
(4) Acquiring or using funds in violation of the relevant provisions, or failing to open and use bank accounts or conduct financial accounting as required.
(5) Failing to submit the annual activity plan or submit or publish the annual work report as required.
(6) Refusing to accept or failing to accept as required the supervision and inspection.
Where the representative office of an overseas NGO, or an overseas NGO conducting temporary activities or its Chinese partner acquires the registration certificate for representative offices or undergoes recordation formalities for temporary activities by providing false materials or any other illegal means, or forges, alters, trades, leases out or lends the registration certificate or seal, it shall be punished in accordance with the provisions of the preceding paragraph.
Article 46 Under any of the following circumstances, the public security organ of the people's government at or above the level of a districted city shall ban or order the violator to stop the illegal acts, confiscate the illegal property and illegal income, and warn the directly liable persons. If the circumstances are serious, the violator shall be detained for not more than ten days:
(1) The violator conducts activities in the name of representative office of an overseas NGO or an overseas NGO without undergoing the registration or recordation formalities.
(2) The violator conducts activities in the name of representative office of an overseas NGO after it is deregistered, its registration certificate is revoked or its registration is cancelled.
(3) An overseas NGO conducts activities within the territory of China after the time limit for its temporary activities expires or its temporary activities are banned.
(4) An overseas NGO that fails to register its representative office or undergo recordation formalities for its temporary activities authorizes or funds the entities and individuals within the territory of China to conduct activities within the territory of China.
Where an entity or individual within the territory of China knowing that an overseas NGO fails to register its representative office or undergo recordation formalities for its temporary activities cooperates with such overseas NGO, or accepts its authorization or financial assistance to act as an agent openly or in disguised form for the overseas NGO to conduct activities or conduct receipts and payments of project activity funds, such entity or individual shall be punished in accordance with the provisions of the preceding paragraph.
Article 47 Where an overseas NGO or the representative office of an overseas NGO falls under any of the following circumstances, the registration administrative authority shall revoke its registration certificate or ban its temporary activities. Where no crime has yet been constituted, the public security organ of the people's government at or above the level of a districted city shall detain the directly liable persons for not more than 15 days:
(1) It instigates the resistance of the implementation of laws and regulations.
(2) It illegally acquires state secrets.
(3) It spreads rumors, slanders others or publishes or disseminates other harmful information, endangers national security or damages national interests.
(4) It engages in or funds political activities, or illegally engages in or funds religious activities.
(5) Other circumstances that endanger national security or damage national interests or public interests.
Where an overseas NGO or the representative office of an overseas NGO splits the country, undermines the national unity, subverts the state power, or commits any other criminal act, the registration administrative authority shall punish it in accordance with the provisions of the preceding paragraph. The directly liable persons shall be subject to criminal liabilities in accordance with the law.
Article 48 Where an overseas NGO or the representative office of an overseas NGO is deregistered, or its registration certificate is revoked or its temporary activities are banned due to violation of this Law, the overseas NGO shall not form a representative office or conduct temporary activities within the territory of China within five years from the date when its representative office is deregistered, the registration certificate is revoked or its temporary activities are banned.
Where an overseas NGO conducts activities when it fails to register its representative office or undergo recordation formalities for temporary activities, it shall not form a representative office or conduct temporary activities within the territory of China within five years from the date when its activities are banned.
An overseas NGO that falls under any of the circumstances as prescribed in Article 47 of this Law may be included by the public security department of the State Council in the list of unwelcome overseas NGOs, and shall not form a representative office or conduct temporary activities within the territory of China.
Article 49 Where the representative office of an overseas NGO is ordered to stop activities within a prescribed time limit, the registration administrative authority shall seal up its registration certificate, seals and financial vouchers. For an overseas NGO's representative office which is deregistered or the registration certificate of which is revoked, the registration administrative authority shall take back its registration certificate and seals andannounce them invalid.
Article 50Overseas personnel violating this Law may be ordered to exit China within a prescribed time limit, repatriated or deported by the relevant authorities in accordance with the law.
Article 51 Where any public security organs, relevant departments and competent business authorities and their staff members fail to perform their functions, or abuse powers, neglect duties, practice favoritism or make falsification during the supervision and administration of overseas NGOs, they shall be subject to legal liability in accordance with the law.
Article 52 Whoever violates the provisions of this Law, which constitutes any violation of public security administration, shall be given a public security administration punishment by the public security organ in accordance with the law; or where a crime is constituted, the offender shall be subject to criminal liability in accordance with the law.
Chapter VII Supplementary Provisions
Article 53 Where overseas schools, hospitals or research institutions or academic organizations of natural sciences and engineering technologies conduct exchanges and cooperation with domestic schools, hospitals or research institutions or academic organizations of natural sciences and engineering technologies, the relevant provisions of the state shall apply.
Where the activities conducted by the overseas schools, hospitals or institutions or organizations as prescribed in the preceding paragraph within the territory of China violate the provisions of Article 5 of this Law, they shall be subject to legal liability in accordance with the law.
Article 54 This Law shall come into force on January 1, 2017.