Our China lawyers were contacted this month by an American Non-Governmental Organization (NGO) which hoped to promote cultural awareness in China. The NGO had heard about China’s law on management of foreign NGOs and requested legal assistance in navigating the regulations and procedures for carrying out these activities in China.
China’s foreign NGO law was implemented starting January 1
st
2017 to regulate the conduct of foreign NGOs in China. According to the law, NGOs which are established overseas may register a Representative Office (RO) in China to conduct various permitted activities. Alternatively, if the NGO does not intend to establish a long term presence in China, the organization may apply to carry out specified temporary activities in cooperation with local Chinese partners such as China’s state organs, public organizations, public institutions or social organizations.
However not all foreign NGOs are qualified to set up its representative office in China, only those NGOS which have legally existed for more than 2 years or more and the purposes and business scope set forth in their articles of association are conducive to the development of public welfare as decided by the China Public Security Bureau are qualified.
For these qualified NGOS, if they intend to set up an RO and conduct relevant activities related to public welfare, they must first file an application to the competent authorities in the local area which provide government oversight over the range of activities the NGO will conduct. For example, our client seeking to promote cultural awareness would be required to file with the local culture and arts bureau. After the approval documents is obtained from such competent authorities, the NGOS may file registration application to the registry office to obtain a registration certificate.
These application documents must clearly describe the activities the RO will engage in, and the geographic scope and regions in China where it will conduct its activities. Such information will be also stated on the registration certificate, all the future activities the representative office must within the registered scope. If the RO conducts activities outside registered scope or engages in illegal profit-making activities, the RO will be subject to penalty including fines, confiscation of earnings, confiscation of other properties and potentially revocation of its registration.