Notice from the Ministry of Civil Affairs Soliciting Opinions on the "Regulations on the Registration and Administration of Social Organizations"

Ministry of Civil Affairs Public Solicitation

Notice on Soliciting Opinions on the "Regulations on the Registration and Administration of Social Organizations" (Draft Revision for Comments)

 

In order to safeguard citizens' freedom of association, protect the legitimate rights and interests of social organizations, strengthen the registration and management of social organizations, and promote the healthy and orderly development of social organizations, our ministry, based on summarizing practical experience, conducting in-depth research, widely soliciting opinions, and repeatedly studying and demonstrating, has drafted the "Regulations on the Registration and Administration of Social Organizations (Draft Revision for Comments)" (hereinafter referred to as the "Draft for Comments"). To widely gather public opinions and further improve legislative quality, the full text of the "Draft for Comments" and its explanation are hereby published to solicit opinions from all sectors of society. Relevant units and individuals who have amendments to the "Draft for Comments" may submit feedback through the following methods:

(1) Log in to the Ministry of Civil Affairs website (URL http://www.mca.gov.cn), click "Interaction" on the top navigation bar of the homepage, enter the "Soliciting Opinions" section (or directly click the "Soliciting Opinions" section at the bottom of the homepage), then click on the "Notice of the Ministry of Civil Affairs on Public Solicitation of Opinions on the (Draft Revision for Comments)" to submit opinions.

(2) Send opinions via email to: zcfgs@mca.gov.cn.

(3) Send opinions by letter to: Policy and Regulations Department, Ministry of Civil Affairs, No. 147 Beiheyan Street, Dongcheng District, Beijing (Postal Code: 100721), and please mark "Soliciting Opinions on the " on the envelope.

The deadline for feedback is August 21, 2016.

 

Ministry of Civil Affairs

August 1, 2016

 

Attachment

 

Regulations on the Registration and Administration of Social Organizations

(Draft Revision for Comments)

 

Chapter 1 General Provisions

Article 1 This regulation is formulated to safeguard citizens' freedom of association, protect the legitimate rights and interests of social organizations, strengthen the registration and management of social organizations, and promote the healthy and orderly development of social organizations.

Article 2 The social organizations referred to in this regulation are non-profit social organizations voluntarily formed by Chinese citizens to carry out activities according to their articles of association to realize the common will of their members.

Organizations other than state organs may join social organizations as unit members.

Article 3 The following social organizations shall be directly registered in accordance with the provisions of this regulation:

(1) Industry associations and chambers of commerce;

(2) Science and technology social organizations engaged in academic research and exchange activities in the fields of natural science and engineering technology;

(3) Public welfare and charity social organizations providing services such as poverty alleviation, relief, elderly care, orphan care, medical aid, disability assistance, disaster relief, medical assistance, and educational assistance;

(4) Urban and rural community service social organizations active within communities to meet the living needs of urban and rural residents;

Social organizations other than those specified in the preceding paragraph, as well as national industry associations and chambers of commerce that must have a business supervisory unit according to laws, administrative regulations, and national provisions, shall be reviewed and approved by their business supervisory units and registered in accordance with this regulation.

Social organizations shall have legal person status.

The following organizations are not within the scope of registration under this regulation:

(1) People's organizations participating in the Chinese People's Political Consultative Conference;

(2) Organizations approved by the State Council's institutional organization management authority and exempted from registration by the State Council;

(3) Organizations established within organs, groups, enterprises, institutions, or communities with the consent of the unit or grassroots mass autonomous organizations, and active within the unit or community.

Article 4 Within social organizations, according to the provisions of the Communist Party of China’s constitution, organizations of the Communist Party of China shall be established to carry out party activities and play the political core role of the party organization. Social organizations shall provide necessary conditions for the activities of party organizations.

Article 5 Social organizations must abide by the constitution, laws, regulations, rules, and national policies; must not oppose the basic principles established by the constitution; must not endanger national unity, security, and ethnic solidarity; must not harm national interests, social public interests, or the legitimate rights and interests of other organizations and citizens; and must not violate social morality.

Article 6 The state protects social organizations in carrying out activities in accordance with laws, regulations, rules, and their articles of association. No organization or individual shall illegally interfere.

Article 7 The civil affairs departments of the State Council and the civil affairs departments of local people's governments at or above the county level are the registration and management authorities of social organizations at their respective levels (hereinafter referred to as registration and management authorities).

Relevant departments of the State Council and relevant departments of local people's governments at or above the county level, as well as organizations authorized by the State Council or local people's governments at or above the county level, are the business supervisory units of social organizations within their respective industries, disciplines, or business scopes (hereinafter referred to as business supervisory units).

If laws and administrative regulations have other provisions on the supervision and management of social organizations, those provisions shall be followed.

Article 8 The state formulates support and encouragement policies to support the development of social organizations.

Social organizations and individuals and organizations that make public welfare donations to public welfare social organizations enjoy tax incentives in accordance with tax laws and administrative regulations.

Social organizations that have made outstanding contributions to economic and social development shall be commended and rewarded in accordance with relevant state regulations.

Chapter 2 Jurisdiction

Article 9 National social organizations shall be registered and managed by the registration and management authority of the State Council; local social organizations shall be registered and managed by the registration and management authority of the local people's government where they are located. Among them, urban and rural community service social organizations shall be registered and managed by the registration and management authority of the county-level people's government where they are located; social organizations spanning administrative regions shall be registered and managed by the registration and management authority of the common higher-level people's government of the administrative regions involved.

Article 10 If the registration and management authority or business supervisory unit and the social organization under its jurisdiction are not located in the same place, the registration and management authority or business supervisory unit of the social organization's domicile may be entrusted to supervise and manage within the entrusted scope.

Chapter 3 Establishment Registration

Article 11 To apply for the establishment of a social organization, the initiator shall apply for registration with the registration and management authority.

The initiator shall be responsible for the legality, authenticity, validity, and completeness of the social organization's registration materials, and for the activities before the registration of the social organization. No activities beyond preparation shall be carried out during the preparation period.

The main initiators shall be candidates for the first board of directors of the social organization.

Article 12 To establish a social organization, the following conditions shall be met:

(1) There are more than 50 individual members or more than 30 unit members; if composed of a mix of individual and unit members, the total number of members shall not be less than 50;

(2) National social organizations have more than 10 initiators, while local social organizations and those spanning administrative regions have more than 5 initiators;

(3) Have a standardized name, constitution, and corresponding organizational structure;

(4) Have a fixed domicile;

(5) Have qualified leaders and full-time staff appropriate to their business activities;

(6) Have necessary assets, with national social organizations having activity funds of more than 100,000 yuan, and local or cross-administrative social organizations having activity funds of more than 30,000 yuan;

(7) Have the capacity to independently bear civil liability.

The members specified in the first item of the preceding paragraph shall have a wide geographical distribution; the initiators specified in the second item shall have social recognition and representativeness within the activity area and business field of the proposed social organization, and shall become members of that social organization.

Article 13 The name of a social organization shall comply with laws, regulations, rules, and national policies, and shall not violate social ethics.

The name of a social organization shall be consistent with its business scope, member distribution, and activity area, accurately reflecting its characteristics.

Social organizations whose names include words such as "China", "National", "Chinese", "International", or "World" shall obtain approval according to relevant national regulations; local social organizations shall not use such words in their names.

Article 14 To apply for registration of a social organization, the initiators shall submit the following documents to the registration authority:

(1) Registration application form;

(2) Capital verification certificate and proof of venue usage rights;

(3) Draft constitution;

(4) List of members, proposed legal representatives, and leaders;

(5) Basic information and identification documents of initiators, proposed legal representatives, and leaders.

The draft constitution, proposed legal representatives, and leaders specified in items three and four of the preceding paragraph must be approved by at least two-thirds of the members or member representatives attending the general meeting or representative assembly.

If the registration of a social organization requires approval from the competent authority, the initiators shall also submit the approval documents from the competent authority to the registration authority.

Article 15 The constitution of a social organization shall include the following matters:

(1) Name and domicile;

(2) Purpose, party-building requirements, business scope, and activity area;

(3) Membership qualifications and their rights and obligations;

(4) Democratic organizational management system;

(5) Procedures for the formation of organizational bodies and rules of procedure;

(6) Conditions for leaders and procedures for their election and removal;

(7) Principles for property management and use;

(8) Procedures for amending the constitution;

(9) Termination procedures and handling of property after termination;

(10) Other matters that should be stipulated by the constitution.

Article 16 The registration authority shall make a decision to approve or disapprove registration within 60 days from the date of receipt of all valid documents listed in Article 14 of these regulations. For national social organizations, if the situation is complex and a decision cannot be made within 60 days, the registration authority head of the State Council may approve an extension, but the extension period shall not exceed 30 days.

When reviewing the documents submitted by the initiators, the registration authority may seek opinions from relevant parties or organize experts for evaluation based on actual circumstances; the time required for this is not included in the registration time limit.

Article 17 The registration authority shall refuse registration and provide written reasons to the applicant in any of the following circumstances:

(1) The purpose and business scope of the social organization applying for registration do not comply with the provisions of Article 5 of these regulations;

(2) The conditions specified in Article 12 of these regulations are not met;

(3) The national social organization applying for registration has the same or similar business scope as an already registered national social organization, and there is no necessity to establish it;

(4) The initiators or proposed leaders are currently or have been deprived of political rights by criminal punishment, or do not have full civil capacity;

(5) There is fraud in the registration application;

(6) Other circumstances prohibited by laws or administrative regulations.

Article 18 For social organizations approved for registration, the registration authority shall issue a "Social Organization Legal Person Registration Certificate" and mark the unified social credit code on the certificate. Registration items include:

(1) Name;

(2) Domicile;

(3) Purpose, business scope, and activity area;

(4) Legal representative and leaders;

(5) Registered capital.

If the registration of a social organization requires approval from the competent authority, the registration items shall also include the competent authority.

Article 19 The legal representative of a social organization shall be the leader stipulated in the constitution; the legal representative shall not concurrently serve as the legal representative of another social organization.

Article 20 Social organizations that have legal person status from the date of approval shall submit the approval documents to the registration authority within 60 days from the date of approval to apply for the "Social Organization Legal Person Registration Certificate." The registration authority shall issue the certificate within 30 days from the date of receipt of the documents.

Article 21 Social organizations shall apply for seal engraving, open bank accounts, and handle tax registration with the "Social Organization Legal Person Registration Certificate." Social organizations shall file the seal pattern with the registration authority.

Chapter 4   Change Registration and Cancellation Registration

Article 22   For changes in registration matters of social organizations, an application for change registration shall be submitted to the registration authority within 30 days from the date the change resolution is made.

If a social organization amends its articles of association, it shall submit the amendments to the registration authority for approval within 30 days from the date the amendment resolution is made.

Social organizations registered after approval by the competent authority shall apply to the registration authority for change or approval within 30 days from the date of approval by the competent authority when applying for change registration matters or approval of amendments to the articles of association.

Article 23   A social organization shall be terminated and apply for cancellation registration with the registration authority under any of the following circumstances:

(1) The purpose stipulated in the articles of association of the social organization has been fulfilled;

(2) Voluntary dissolution;

(3) Division or merger;

(4) Cancellation of registration or revocation of the "Social Organization Legal Person Registration Certificate" according to law;

(5) Termination for other reasons.

Social organizations registered after approval by the competent authority shall obtain consent from the competent authority before applying for cancellation registration.

Article 24   Social organizations shall, within 30 days from the occurrence of the termination circumstances stipulated in Article 23 of these regulations, establish a liquidation team under the guidance of the competent authority, registration authority, and other relevant agencies to carry out liquidation and make a public announcement. If no liquidation team is established or the liquidation team fails to perform its duties, the competent authority and registration authority shall apply to the people's court to appoint relevant personnel to form a liquidation team to carry out liquidation according to law.

During the liquidation period, social organizations shall not engage in activities other than liquidation.

Article 25   The remaining assets after liquidation of a social organization shall be disposed of in accordance with the provisions of the articles of association; if not stipulated, they shall be transferred by the registration authority to social organizations with the same or similar purposes, or used for public welfare purposes.

Article 26   Social organizations shall submit an application for cancellation registration and a liquidation report to the registration authority within 15 days from the completion of liquidation to handle the cancellation registration.

Social organizations that require approval from the competent authority before registration shall also submit the approval documents from the competent authority to the registration authority.

The registration authority shall issue a cancellation certificate upon approval of the cancellation registration, retrieve the registration certificate and seal of the social organization, and handle financial vouchers in accordance with national regulations on accounting archives management.

Article 27   The establishment, cancellation, or change registration matters of social organizations shall be announced by the registration authority.

Article 28   If the "Social Organization Legal Person Registration Certificate" is lost or damaged, the social organization shall declare it void in the designated newspaper by the registration authority and apply for a replacement.

If the registration authority legally makes a decision on change registration or cancellation registration, and the social organization refuses or is unable to return the "Social Organization Legal Person Registration Certificate" or seal, the registration authority shall announce the certificate and seal as void.

Chapter 5   Organizational Structure

Article 29   Social organizations shall establish and improve organizational structures in accordance with laws, regulations, rules, and articles of association, improve internal governance mechanisms, implement democratic elections, democratic decision-making, and democratic management, and carry out activities according to law.

Article 30   The organizational structures of social organizations include the general assembly of members or members' representative assembly, the council, and supervisors or supervisory board.

Article 31   The general assembly of members or members' representative assembly is the authority body of the social organization, exercising powers such as formulating and amending the articles of association and membership fee standards, formulating and amending election methods for leaders, council members, and supervisors, reviewing and approving the council's work report and financial report, deciding on the termination of the social organization, and other powers stipulated in the articles of association.

Article 32   The council is the executive body of the general assembly of members or members' representative assembly, exercising powers stipulated in the articles of association and being accountable to the general assembly or members' representative assembly.

Social organizations may establish an executive council as needed.

Article 33   The general assembly of members or members' representative assembly, council, and executive council shall record the decisions on matters discussed in meeting minutes. The meeting minutes shall be kept by the social organization and communicated to the public.

Article 34   Social organizations shall set up supervisors. If there are three or more supervisors, a supervisory board may be established. Supervisors or the supervisory board exercise powers such as inspecting the social organization's finances, supervising the performance of duties by council members and executive council members, and other powers stipulated in the articles of association.

Article 35   Leaders of social organizations shall comply with laws, regulations, rules, and articles of association, faithfully perform their duties, and safeguard the legitimate rights and interests of the social organization and its members.

Leaders of social organizations shall not have close kinship relations.

Article 36   The following persons shall not serve as leaders of social organizations:

(1) Those who are currently or have been subject to criminal penalties depriving political rights, or those without full civil capacity;

(2) Those who have served as leaders in social organizations whose registration was revoked or whose "Social Organization Legal Person Registration Certificate" was revoked and bear personal responsibility for the illegal acts of the social organization, or those who have served as leaders in banned social organizations, within three years from the date of revocation, cancellation, or ban;

(3) Other circumstances prescribed by laws, administrative regulations, and rules.

Article 37   Branches and representative offices of social organizations are parts of the social organization and do not have legal person status. They shall carry out activities and develop members within the scope of authorization according to the purposes and business scope stipulated in the articles of association of the social organization they belong to, using the standardized full name. Branches of social organizations shall not establish further branches.

Social organizations shall not establish regional branches.

Article 38   Social organizations shall not establish or disguise vertical management relationships between each other.

Chapter 6   Information Disclosure

Article 39   The registration authority shall disclose the following information to the public:

(1) Registration matters of social organizations;

(2) Results of inspections and evaluations conducted on social organizations;

(3) The results of commendations and penalties for social organizations;

(4) Other information that should be disclosed according to laws and administrative regulations.

Article 40 Social organizations shall disclose to the public their articles of association, responsible persons, organizational structure information, the acceptance and use of social donations, and other information required to be disclosed by the State Council registration and management authority. If there are significant changes in the above information, social organizations shall promptly disclose them to the public.

Article 41 Social organizations shall submit the previous year's work report through the unified information platform of the registration and management authority before May 31 each year and disclose it to the public. The content of the annual work report includes: compliance with laws, regulations, rules, and national policies; fulfillment of registration procedures according to this regulation; activities carried out according to the articles of association; changes in personnel and institutions; and financial management.

Social organizations established after approval by the competent authority shall submit the previous year's work report to the competent authority for review before submitting it to the unified information platform of the registration and management authority.

Article 42 Information involving state secrets, trade secrets, personal privacy, and the name, address, contact information, etc., of donors who do not agree to disclosure shall not be disclosed.

Chapter 7 Supervision and Management

Article 43 The sources of social organizations' property must be legal, and no unit or individual shall occupy, divide, or misappropriate it.

The property of social organizations must be used for business activities stipulated in the articles of association and shall not be distributed among members.

Social organizations accepting donations and funding must comply with the purposes and business scope stipulated in the articles of association and use them according to the agreed period, method, and legal purpose with donors and funders. Social organizations shall report the acceptance and use of donations and funding to the competent authority.

Social organizations shall not accept donations that violate laws, administrative regulations, or social ethics.

Article 44 Social organizations must implement the national unified accounting system and financial management system prescribed by the state and accept supervision by the financial department; if the property source is government funding or social donations and funding, they shall also accept supervision by the audit authority.

Social organizations shall conduct financial audits before leadership changes or replacement of legal representatives.

All financial income and expenditure of social organizations shall be included in their opened bank accounts and shall not use bank accounts of other organizations or individuals.

Article 45 Social organizations accepting foreign donations, carrying out foreign cooperation projects, or joining international organizations shall comply with relevant national regulations.

Article 46 The registration and management authority shall perform the following duties for social organizations:

(1) Responsible for the establishment, change, cancellation of registration, and approval of articles of association of social organizations;

(2) Conduct spot checks on social organizations' activities and financial management according to this regulation and their articles of association;

(3) Accept reports from relevant units and individuals about social organizations;

(4) Supervise and inspect social organizations for violations of this regulation and impose administrative penalties for such violations.

Article 47 When performing duties, the registration and management authority may take the following measures against social organizations suspected of violating this regulation:

(1) Interview the responsible persons of social organizations;

(2) Enter the residence or activity premises of social organizations for on-site inspection;

(3) Question units and individuals related to the investigated incident and require explanations regarding matters related to the incident;

(4) Review and copy documents and materials related to the investigated incident, and seal documents and materials that may be transferred, destroyed, concealed, or altered;

(5) Seal or seize places, facilities, or property related to the investigated incident;

(6) Conduct financial audits of social organizations and inquire about bank accounts of units and individuals related to the investigated incident.

Measures specified in item 5 of the preceding paragraph require approval from the main person in charge of the registration and management authority.

There shall be no fewer than two personnel conducting on-site inspections or investigations, and they shall present legal credentials and inspection or investigation notices.

Units and individuals being inspected or investigated shall cooperate and truthfully provide relevant documents and materials and shall not conceal, refuse, or obstruct.

Article 48 The competent authority shall perform the following duties for social organizations:

(1) Responsible for reviewing the establishment, change, cancellation of registration, and approval of articles of association of social organizations before registration;

(2) Supervise and guide social organizations to comply with the constitution, laws, regulations, rules, and national policies and carry out activities according to their articles of association;

(3) Responsible for the preliminary review of social organizations' annual work reports;

(4) Assist the registration and management authority and other relevant departments in investigating and handling illegal acts of social organizations;

(5) Cooperate with relevant authorities to guide the liquidation of social organizations;

(6) Other matters that should be handled by the competent authority.

Article 49 The registration and management authority shall establish an evaluation system for social organizations, credit records for social organizations and their responsible persons, and share social organization registration and management information with the competent authority and other relevant departments.

Article 50 The registration and management authority, competent authority, and other relevant departments shall not charge fees for performing duties stipulated in this regulation.

Chapter 8 Legal Liability

Article 51 If a social organization falsifies information to obtain registration or fails to carry out activities within one year from the date of obtaining the "Social Organization Legal Person Registration Certificate," the registration and management authority shall revoke the registration.

Article 52 If a social organization no longer meets the conditions stipulated in Article 12 of this regulation, the registration and management authority shall order correction and may suspend activities within a time limit; if the situation is serious or not corrected within the prescribed time limit, the "Social Organization Legal Person Registration Certificate" shall be revoked.

Article 53 If a social organization violates the provisions of Article 5 of this regulation and the circumstances are serious, the registration and management authority shall revoke the "Social Organization Legal Person Registration Certificate"; for directly responsible supervisors and other directly responsible personnel who constitute violations of public security management, public security management penalties shall be imposed according to law; if a crime is constituted, criminal responsibility shall be pursued according to law.

Article 54: If a social organization has any of the following circumstances, the registration management authority shall give a warning, order correction, may suspend activities for a limited period, and may order the replacement of directly responsible supervisory personnel; if the circumstances are serious, the "Social Organization Legal Person Registration Certificate" shall be revoked; if it constitutes a violation of public security management, public security management penalties shall be imposed according to law; if it constitutes a crime, criminal responsibility shall be pursued according to law:

(1) Forging, altering, renting, or lending the "Social Organization Legal Person Registration Certificate", or renting or lending the social organization's seal;

(2) Engaging in activities beyond the purposes and business scope stipulated in the articles of association;

(3) The person in charge of the social organization does not meet the requirements stipulated in Article 36 of these Regulations;

(4) Refusing to accept or not accepting supervision and inspection as required;

(5) Failing to handle change registration, cancellation registration, or amendment approval procedures of the articles of association as required;

(6) Establishing branches or representative offices in violation of Article 37 of these Regulations, or neglecting management of branches or representative offices causing serious consequences;

(7) Violating the provisions of Article 38 of these Regulations;

(8) Engaging in profit-making business activities;

(9) Embezzling, misappropriating, or privately dividing the property of the social organization or the donations and funding it has received;

(10) Collecting fees, raising funds, or accepting and using donations and funding in violation of national regulations;

(11) Violating the provisions of the third paragraph of Article 44 of these Regulations.

If the acts stipulated in the preceding paragraph involve illegal business turnover or illegal gains, they shall be confiscated, and a fine of not less than one time but not more than three times the illegal business turnover or not less than three times but not more than five times the illegal gains may be imposed.

Article 55: If a social organization fails to fulfill the information disclosure obligations as stipulated in these Regulations, the registration management authority may list it in the abnormal directory and publicly disclose it to the society through a unified information platform to urge it to fulfill the information disclosure obligations. If a social organization fails to fulfill the annual report obligations in accordance with these Regulations for two consecutive years, the registration management authority shall revoke the "Social Organization Legal Person Registration Certificate".

If a social organization is listed in the abnormal directory, relevant departments shall cancel its qualifications to enjoy tax incentives, undertake government function transfers, and purchase services according to law.

Article 56: If the activities of a social organization violate other laws and regulations, the relevant state organs shall handle them according to law; if the relevant state organs believe that the "Social Organization Legal Person Registration Certificate" should be revoked, the registration management authority shall handle it according to law.

Article 57: Engaging in activities in violation of the provisions of the second paragraph of Article 11 of these Regulations, or conducting activities in the name of a social organization without registration, as well as continuing to conduct activities in the name of a social organization after being deregistered or having the "Social Organization Legal Person Registration Certificate" revoked, shall be banned by the registration management authority, with illegal property and illegal gains confiscated, and a fine of not less than one time but not more than five times the illegal gains may be imposed; if there are no illegal gains or the illegal gains are less than 10,000 yuan, a fine of not less than 10,000 yuan but not more than 100,000 yuan may be imposed; if it constitutes a violation of public security management, public security management penalties shall be imposed according to law; if it constitutes a crime, criminal responsibility shall be pursued according to law.

Article 58: If a social organization is ordered to suspend activities for a limited period, the registration management authority shall seal the "Social Organization Legal Person Registration Certificate", seal, and financial vouchers.

If a social organization is deregistered or its "Social Organization Legal Person Registration Certificate" is revoked, the registration management authority shall confiscate the "Social Organization Legal Person Registration Certificate" and seal. If the social organization refuses or is unable to return the "Social Organization Legal Person Registration Certificate" and seal, the registration management authority shall announce them as invalid.

Article 59: If staff of the registration management authority, competent business units, and other relevant departments abuse their power, engage in malpractice for personal gain, or neglect their duties constituting a crime, criminal responsibility shall be pursued according to law; if it does not constitute a crime, administrative sanctions shall be imposed according to law.

Chapter 9: Supplementary Provisions

Article 60: The person in charge of a social organization referred to in these Regulations means the chairman or president, vice chairman or vice president, and secretary-general of the social organization.

Article 61: The model text of the articles of association of social organizations and the format of the "Social Organization Legal Person Registration Certificate" shall be formulated by the civil affairs department of the State Council.

Article 62: The establishment of international social organizations in mainland China shall be managed with reference to these Regulations, and specific measures shall be formulated by the civil affairs department of the State Council.

Article 63: These Regulations shall come into force on year month day. The "Regulations on the Administration of Social Organization Registration" issued by the State Council on October 25, 1998, shall be repealed simultaneously.

 

Explanation on the "Regulations on the Administration of Social Organization Registration (Draft Revision for Soliciting Opinions)"

 

Social organizations are an important form of social organization and play an active role in China's economic and social development. Since the promulgation and implementation of the "Regulations on the Administration of Social Organization Registration" (hereinafter referred to as the "Regulations") in 1998, social organizations have continuously developed. By the end of 2015, there were 329,000 registered social organizations nationwide, which have played an active role in promoting economic development, prospering social undertakings, innovating social governance, and expanding foreign exchanges. However, new situations and problems have also emerged. To adapt to the current development status of social organizations, promote their healthy and orderly development, and further strengthen and improve legal protection, the Ministry of Civil Affairs initiated the revision of the Regulations. Based on a careful summary of practical experience and in-depth investigation and research, the "Regulations on the Administration of Social Organization Registration (Draft Revision for Soliciting Opinions)" (hereinafter referred to as the "Draft for Soliciting Opinions") was drafted, consisting of 9 chapters and 63 articles. The main amendments of the "Draft for Soliciting Opinions" are explained as follows:

1. Cultivating and Developing Community Social Organizations

The "Draft for Soliciting Opinions" lowers the entry threshold and supports and encourages the development of urban and rural community service social organizations. First, urban and rural community service social organizations established to meet the living needs of urban and rural community residents and operating within the community can be directly registered (Article 3). Second, it clarifies that groups established with the consent of their unit or grassroots mass autonomous organizations and operating within the unit or community are not within the registration scope of these Regulations (Article 3). Third, urban and rural community service social organizations are registered and managed by the registration management authority of the county-level people's government where they are located (Article 9).

2. Clarifying the Scope of Direct Registration

The "Draft for Soliciting Opinions" clarifies that industry associations and chambers of commerce, science and technology, public welfare and charity, and urban and rural community service social organizations can be directly registered, and defines the business scope of these four types of directly registered social organizations. For social organizations established outside the scope of direct registration, as well as national industry associations and chambers of commerce that must have competent business units according to laws, administrative regulations, and national provisions, approval by the competent business unit is required (Article 3).

3. Clarifying the Conditions for Initiators and Prospective Persons in Charge, Strengthening Responsibility and Review

The "Draft for Comments" clarifies the conditions for sponsors and prospective responsible persons, strengthens qualification review, and reinforces the responsibilities of sponsors and prospective responsible persons. First, sponsors are required to be responsible for registration materials and activities prior to registration. The main sponsor should be the candidate for the first council leader of the social organization (Article 11). Second, sponsors should have socially recognized representativeness within the activity region and business field of the proposed social organization (Article 12). Third, the leader of the social organization should faithfully perform duties and safeguard the legal rights and interests of the social organization and its members. The leader of the social organization must not have close kinship relations (Article 35).

4. Improve Internal Governance Mechanisms

The "Draft for Comments" adds Chapter Five "Organizational Structure," guiding social organizations to establish and improve internal governance mechanisms, regulate the rights and obligations of the members' assembly or members' representative assembly, the council, and the supervisory board (committee), improve internal supervision systems, strengthen democratic elections, democratic decision-making, and democratic management, and ensure the lawful autonomy of social organizations. First, it clarifies that social organizations should establish the Communist Party of China organization to play the political core role of the Party organization (Article 4). Second, it establishes that the members' assembly or members' representative assembly is the power organ of the social organization, the council is the executive organ of the members' assembly or members' representative assembly, and clarifies related powers (Articles 31 and 32). Third, it strengthens supervision during and after events, requiring social organizations to record decisions on matters discussed and keep records for public disclosure (Article 33). Fourth, it improves internal supervision mechanisms, requiring social organizations to establish supervisors or supervisory boards and perform inspection and supervision duties (Article 34).

5. Establish an Information Disclosure System

The "Draft for Comments" adds Chapter Six "Information Disclosure," clearly stipulating the information disclosure obligations of registration management authorities and social organizations, encouraging public supervision of social organizations to improve transparency and enhance credibility. First, registration management authorities should publicly disclose information on social organization registration, inspection, evaluation, commendation, and punishment (Article 39). Second, it clarifies that social organizations, as obligated subjects of information disclosure, should proactively and timely disclose important information such as their articles of association, leaders, and organizational structure (Article 40). Third, it replaces the current annual inspection system with an annual reporting system, publicly discloses annual work reports, and accepts public supervision (Article 41).

6. Strengthen Non-Profit Supervision

The "Draft for Comments" strengthens supervision over the use and disposal of social organization assets to effectively ensure their non-profit nature. First, it clarifies that no unit or individual may embezzle, privately divide, or misappropriate social organization assets, nor distribute them among members (Article 43). Social organization asset income and expenditure must not use bank accounts of other organizations or individuals (Article 44). Second, it stipulates the disposal of remaining assets after liquidation of social organizations, ensuring the non-profit nature of social organization assets (Article 25). Third, it clarifies corresponding legal responsibilities for engaging in profit-making activities or embezzling, privately dividing, or misappropriating social organization assets (Article 54).

7. Strengthen Supervision and Management Efforts

The "Draft for Comments" not only actively cultivates and supports but also strengthens supervision during and after events, establishing a comprehensive supervision system combining social organization self-discipline management, social supervision, and government regulation. On one hand, it improves internal governance structures, strengthens self-discipline management, and encourages social supervision through information disclosure; on the other hand, it further stipulates government supervision. First, it strengthens credit constraints on social organizations, exploring the establishment of credit records and abnormal lists for social organizations and their responsible persons (Articles 49 and 55). Second, it clarifies the supervisory responsibilities of registration management authorities and competent business units, and the measures registration management authorities may take when social organizations are suspected of violating these regulations to ensure the implementation of supervisory duties (Articles 46 and 47). Third, registration management authorities establish corresponding evaluation and credit record systems and strengthen information sharing on social organization registration management with competent business units and other relevant departments (Article 49).

8. Clarify Legal Responsibilities

The "Draft for Comments" revises the current Chapter Six "Penalties" to "Legal Responsibilities" to make it more standardized and accurate. First, it streamlines and supplements types of administrative penalties, clarifying circumstances for revoking or canceling registration (Articles 51, 52, and 53). Second, it adds corresponding penalties for directly responsible supervisors and other directly responsible personnel (Article 53). Third, it adds economic penalties in the form of fines alone; besides confiscating illegal property and unlawful gains, corresponding economic penalties may be imposed (Article 57).