(Source: https://pltfrm.com.cn)
Introduction
For overseas organizations looking to establish a long-term presence in China, navigating the legal and regulatory landscape is essential. This article outlines the steps needed to ensure a successful and compliant establishment of operations in China under the Law on the Management of the Activities of Overseas NGOs.
1. Setting Up a Representative Office
1.1 Registration Process
Foreign NGOs must register their representative offices with the Ministry of Public Security. This process includes submitting proof of legal establishment abroad and a clear activity plan for China.
1.2 Approval from Supervising Authorities
Before registering, NGOs must obtain approval from relevant supervising authorities, based on their sector of activity. These authorities vary depending on the nature of the organization’s work, such as education or healthcare.
2. Financial Management
2.1 Designated Bank Accounts
All funds used for activities in China must be managed through designated bank accounts. Organizations are required to provide detailed records of all financial transactions.
2.2 Financial Transparency
Annual financial reports must be audited by a certified Chinese accounting firm. This ensures transparency and compliance with local financial regulations.
3. Operational Limitations
3.1 Restricted Activities
Foreign NGOs cannot engage in profit-making, religious, or political activities. All operations must be aligned with the purpose of the organization and its approved sector.
3.2 Limitations on Membership
NGOs are prohibited from recruiting local members without explicit approval. They can only operate within the defined geographical area stated during registration.
4. Case Study: Oxfam’s China Operations
Oxfam successfully set up a long-term presence in China by aligning its poverty alleviation projects with the regulatory requirements. By working closely with local authorities, Oxfam expanded its reach while maintaining legal compliance.
Conclusion
For long-term success in China, foreign NGOs must adhere to strict regulatory requirements, including the proper registration of offices, financial transparency, and adherence to operational limitations. Establishing a representative office is a critical step towards creating a lasting presence in China.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
