Set up a Chinese Foundation

Foundations in China are NGOs (non-governmental organizations) mostly seen in the education field, science, IT, and healthcare, or are established for environmental protection purposes, but are not limited to these. According to the Charity Law and Overseas NGO Law, a foundation can run under the rules of ROs (representative offices in China) and is subject to varied governmental incentives, particularly for tax matters. We invite you to talk to our consultants foropening a company in China and solicit support and information about how you can set up a Chinese foundation.

What are the criteria for founding a charity in China?

A foundation in China can be established with respect to a series of regulations mentioned by the Charity Law, such as:

• a foundation needs to offer strong details about the objectives and the business scope of the entity;
• in the case of litigation, the NGO is liable for damage payments;
• a charity needs to be settled for at least 2 years in order to register the RO in China;
• the foundation in China will be considered a legal entity in the country of origin.

If your NGO meets the above-cited criteria, the Overseas NGO Administration Office, which is part of the Public Security Department of the Provincial People’s Government in China, will deal with the paperwork and the applications in this matter. This institution will determine whether your foundation may activate in China or not. Below is an infographic with details about foundations in China:

What documents do I need to open an NGO in China?

Foreign charity organizations that decide on NGOs in China must provide articles of association and proof that they have been running for at least two years in the country of origin. A statement of a clear criminal record of the representative of the NGO needs to be considered at the time you wish to register the charity. All the documents need to be notarized by a public notary in China.

Types of NGOs available in China

Here are some types of NGOs in China that you should consider when registering a charity:

• Social organizations, the most popular NGOs in China.
• Officially Organized NGOs can be started and sponsored by the government.
• Foreign NGOs with restrictions on specific activities.
• Private Non-Enterprise Units without a membership base.
• International NGOs with representative offices in China.

NGOs in China are also known as popular organizations. Those who want to open a charity in China must understand that NGOs are the right structures for social welfare activities in this country and are accepted by law. It is also worth emphasizing that in China, the term non-profit organization is also used when talking about foundations/charities, but with slight nuances different from NGOs. We invite you to find out more information about charities in China from our local agents.

Legal representative of an NGO in China

Opening an NGO in China also involves appointing a legal representative. According to Chinese Law, this legal representative should be the frontrunner/owner of the respective NGO. However, some clarifications need to be made in this regard. For example, NGO founders cannot act as legal representatives if the respective organization opens its offices in other cities/regions in China. In such situations, the extension is done with the help of independent NGOs in China, with local legal representatives.

Do I need a bank account for my NGO in China?

Yes, if your application for setting up a Chinese foundation has been approved, you may open a bank account, and apply for a tax registration number and a seal. We mention that a power of attorney is necessary for opening the RO in China under which your foundation will activate.

If you would like to open a company in China or if you want to set up a foundation in China, please feel free to talk to our company formation representatives.

Temporary activities of Chinese foundations

Foreign NGOs can carry out their activities in mainland China after registering a representative office. It is possible to obtain a permit for developing temporary activities as an NGO with an RO in China. With this type of permit, temporary activities of a foreign NGO can be carried out, as long as they are in collaboration with the governmental authorities in China. Here are other interesting aspects:

• One needs a Chinese cooperative partner that agrees with the temporary activities carried out by us through an overseas NGO.
• Once the partner is chosen, he will take care of various formalities, in collaboration with the local authorities.
• The record-filing procedures and other formalities must be completed 15 days before the start of temporary activities.
• An agreement between the Chinese cooperative partner and the Chinese foundation is necessary.
• In this regard, documents will be drawn up to certify the name, objectives, and source of funds for temporary activities, as well as their duration.
• Documents and information about the Chinese bank account used will be passed.
• Documents certifying administrative regulations are also required.

It is good to know that temporary activities can be carried out during a year, according to the People’s Republic of China NGO Law. If it takes more than 1 year for this type of activity, another record filing must be made. We invite you to discuss about the company formation in China and Chinese NGOs with our local representatives.

Can Chinese foundations be rejected by the government?

There is a possibility that an overseas NGO may not be able to carry out its activities, especially if they are temporary. This happens because sometimes it is difficult to find a partner in this sense, as mentioned above, among the rules for temporary activities of an overseas NGO. However, if you are faced with such a situation, you should know that you can appeal this decision to the Ministry of Public Security in China. We also mention that the authorities supervise the activities of Chinese foundations to detect those who operate illegally, precisely because of the rejections that may appear from the very beginning.

Why work with us for opening a Chinese foundation?

We have experience working with both local and foreign citizens interested in starting a foundation in China, so we can offer specialized help in this endeavor. We can advise you on the legislation and the best business practices so that you can access the Chinese market with your foundation.

Statistics about NGOs in China

Here are some interesting facts about the presence and activity of NGOs in China:

• There has been an increase in the credibility of NGOs in China. Around 68% of respondents in 2024 said that they trust that charities/foundations are acting in a good direction.
• There was a significant increase in the number of NGOs in China in 2024, compared to 2023. Many important international organizations are now found as representative offices in China.
• In 2024, around 57 NGOs were registered in China, and their total number was 775.

In addition to assistance for opening a foundation in China, our specialists can help you in other situations. You can count on our services when opening a WOFE in China. You can also collaborate with our accountants in China when setting up a business here. Please explore our local services and contact our experts in company incorporation in China for immediate assistance.