Chapter I  General Provisions

Article 1 For the purpose of carrying out the provisions on “permission to set up China-foreign cooperative training institutions of business nature” under the Overall Plan of China (Shanghai) Pilot Free Trade Zone, further expanding the opening of training service industry to the outside, strengthening the foreign exchange and cooperation of training service industry, and in accordance with the Law of the People’s Republic of China on China-foreign Cooperative Ventures, Company Law of the People’s Republic of China, the Regulations of the People’s Republic of China on Cooperative School-running, the Regulations of Shanghai Municipality on Promoting Life-long Education, the Procedures for Administration of China (Shanghai) Pilot Free Trade Zone and other laws, rules and regulations, these Interim Procedures are formulated.

Article 2 China-foreign cooperative training institutions of business nature (hereinafter referred to as the cooperative training institutions) in these Interim Procedures mean corporation-system enterprises set up by eligible foreign enterprises or other economic organizations and Chinese enterprises in cooperation, providing the public with non-public-welfare training service of cultural education or vocational skills.

Article 3 These Interim Procedures apply to the establishment and administration of cooperative training institutions in China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the PFTZ).

Article 4 Training of cultural education in these Interim Procedures means the training activity of business nature relating to subjects set out in the Subject Classification and Code State Standard of the People’s Republic of China. Training of vocational skills in these Interim Procedures means the training activity of business nature relating to technical occupations set out in the Occupational Classification Cannon of the People’s Republic of China. Where laws and administrative regulations and decisions of the State Council provide otherwise, such provisions prevail.

No cooperative training institution shall conduct formal schooling education or preschool education, or provide training programs in such special fields as religion, military, police, politics and Party school.

Article 5 The municipal departments of educational administration and of human resources and social security, the municipal administration for industry and commerce PFTZ sub-bureau (hereinafter referred to as the PFTZ industrial and commercial sub-bureau) and the administrative committee of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the PFTZ administrative committee) shall exercise relevant duty of administration according to their respective functions and duties.

The departments of educational administration and of human resources and social security are the competent departments of cooperative training institutions of educational and occupational skills respectively, mainly performing the following duties:  　　

 1. examine the basic conditions of and access requirements for training programs of business nature applied for by cooperative training institutions, take charge of supervision and special inspection over training programs and training activities;

2. investigate the cooperative training institutions on misappropriation of training funds or mala fide termination of training programs; and

3. investigate in conjunction with the PFTZ industrial and commercial sub-bureau any training activity of business nature conducted without registration or authorization. 　　

The PFTZ industrial and commercial sub-bureau is the register office of cooperative training institutions, mainly performing the following duties:

1. handle the enterprise registration of cooperative training institutions and supervise such matters thereof;

2. supervise the advertising publicity on training recruitment; and

3. investigate in conjunction with the departments of educational administration or human resources and social security any training activity conducted without registration or authorization.

The PFTZ administrative committee is the examination agency for the contracts and articles of association of cooperative training institutions, take charge of examination and approval of the establishment and alteration of cooperative training institutions, and exercise functions as the examination and approval organ.

The public security and other relevant functional departments shall exercise relevant administrative functions according to their respective functions and duties.

Chapter II  Establishment

Article 6 The Chinese and foreign sides of a cooperative training institution shall have experience in educational training investment and management and shall comply with one of the following conditions:

1. be able to provide international advanced experience in educational training administration, management model and service model; and

2. be able to provide training courses, teaching staff and teaching facilities and equipment with international leading level.

Article 7 For setting up a cooperative training institution, apart from compliance with the Law of the People’s Republic of China on China-foreign Cooperative Ventures, Company Law of the People’s Republic of China and other relevant provisions, the following requirements shall be complied with:

1. have a legal representative of company familiar with teaching profession and school running administration; the legal representation shall be the full-time person-in-charge of the company, responsible for training operation activity of the cooperative training institution as required by articles of association and shall be registered according to law;

2. have full- and part-time teachers and administrators suited for the classification, gradation and scale of training;

3. have corresponding training funds and outlay source to guarantee the launching of routine teaching, the school-running funds being not less than RMB 1 million yuan;

4. have premises of the company (teaching building, the same below)  suited to the training program and teaching equipment; and

5. have the administrative system for running school and teaching.

Article 8 The establishment of a cooperative training institution has two steps of preparation and formal opening. No preparation is needed for an enterprise to change into a cooperative training institution or for a cooperative training institution to set up a branch company.

Article 9 The designation of a cooperative training institution shall comply with the Regulations of Enterprise Designation Registration and relevant provisions of laws and rules; the word “training” shall be stated in the trade description and no words “school”, “institute” and “college” shall appear.

Article 10 An applicant for setting up a cooperative training institution shall apply to the PFTZ industrial and commercial sub-bureau for handling designation pre-approval formalities and then log on the PFTZ website “investment handling direct connection”, prepare relevant application materials as required by the department of educational administration or human resources and social security, and make submissions to the “one-widow acceptance” window at the PFTZ industrial and commercial sub-bureau to lodge the setting-up application. The PFTZ industrial and commercial sub-bureau shall forthwith transmit the submissions to the PFTZ administrative committee.

Article 11 The PFTZ administrative committee shall, within 10 workdays after receiving the above-mentioned submissions, seek opinions from the department of educational administration or human resources and social security and inform the investor of the consulting result and at the same time post the consulting result on the PFTZ website.

Article 12 The applicant shall, according to the opinion of approved preparation and the “one-window acceptance“ procedure for setting up foreign-funded enterprises in the PFTZ, complete relevant formalities; in the case of complete and correct materials, the applicant may, within 10 workdays, go to draw relevant licenses at the “one-window acceptance” window.

Article 13 A cooperative training institution, upon obtaining the approval letter, enterprise business license and other relevant documents, shall conduct the preparation activity for training programs within the authorized scope of business, and no recruitment of students shall be made during the preparation.

Upon approval of preparation, the cooperative training institution shall, within six months after the day of approval of preparation, apply to the PFTZ industrial and commercial sub-bureau for alteration of business scope and formal opening, and provide the corresponding school-running capital verification report and other relevant materials.　

Article 14 A cooperative training institution, if setting up a branch company in the PFTZ, shall apply to the PFTZ industrial and commercial sub-bureau according to law by reference to the provisions of Article 7 of these Interim Procedures. The PFTZ industrial and commercial sub-bureau，upon obtaining opinions sought by the PFTZ administrative committee from the departments of educational administration or human resources and social security, make a decision on approval or disapproval of registration.

Chapter III  Alteration and Termination

Article 15 If a cooperative training institution makes application for changing its domicile, legal representative, Chinese or foreign cooperative party, registered capital, business scope (including application for formal opening or for the increase or alteration of training programs), the PFTZ administrative committee shall, upon seeking opinions from the departments of educational administration or human resources and social security, make a decision of approval or disapproval and the PFTZ industrial and commercial sub-bureau shall, according to law, make a decision on approval or disapproval of alteration registration.

Article 16 A branch company of a cooperative training institution, if changing its business premises, person-in-charge, business scope (adding or changing training programs), shall make application to the PFTZ industrial and commercial sub-bureau, which shall, upon obtaining opinions sought by the PFTZ administrative committee from the municipal departments of educational administration or human resources and social security, make a decision on approval or disapproval of alteration registration.  

Article 17 A cooperative training institution in one of the following cases shall go through the formalities of school-running termination:

1. termination as required by the contract or articles of association of the company;

2. termination as required by the resolution of the board of directors or joint administrative committee;  

3. unable to continue school running due to capital liability;

4. the company has declared bankruptcy or has been dissolved, or has its business license revoked according to law, or has been ordered to be shutdown or cancelled; and

5. other cases as prescribed by laws and regulations

Article 18 A cooperative training institution in the case of termination of school running shall apply to the PFTZ industrial and commercial sub-bureau for changing or canceling registration.

When handling the cancellation registration, the PFTZ industrial and commercial sub-bureau shall obtain opinions sought by the PFTZ administrative committee from the municipal department of educational administration or human resources and social security, and collect the receipt of revocation approval letter issued by the PFTZ administrative committee. And, in the case of application for cancellation due to termination of cooperation ahead of schedule, the approval document of the PFTZ administrative committee shall be collected as well.

Chapter IV  Administration

Article 19 A cooperative training institution shall according to the Regulations of Shanghai Municipality on Promoting Life-long Education and relevant provisions, open a special deposit account for tuitions and miscellaneous fees and establish a management system therefor.

A company that applies for changing into a cooperative training institution, shall, in applying for alteration, open its special deposit account for tuitions and miscellaneous fees.

Article 20 When collecting tuitions and miscellaneous fees, a cooperative training institution shall issue a receipt printed under supervision by the Municipal Local Taxation Bureau. The full tuitions and miscellaneous fees shall enter its special deposit account to be used mainly for educational and teaching activities, so as to defend the education receivers’ and teachers’ legitimate rights and interests.  

Article 21 When launching the open training enrollment activity, a cooperative training institution shall sign with trainees or their legal guardians a standard “training service contract or agreement” (hereinafter referred to as the Training Contract), specifying the rights and obligations of both sides.

Article 22 A cooperative training institution shall conduct training activity in the place (teaching building) registered with approval of the PFTZ industrial and commercial sub-bureau.

The premises of the cooperative training institution shall comply with the requirement of its training scale and program and the relevant provisions on teaching building safety and fire safety. 　　

Article 23 A cooperative training institution shall, according to law, sign a Labor Employment Contract with the full-time teachers and administrators, safeguarding the teaching and administrative staff’s legitimate rights and interests.

The cooperative training institution shall employ foreign teachers or administrators according to the relevant provisions of the State and this Municipality.

Article 24 A cooperative training institution shall issue training certificates or certificates of course completion according to the relevant provisions of the State and this Municipality.

Article 25 The relevant functional departments such as municipal departments of educational administration, human resources and social security, commerce, industrial and commercial administration shall establish a mechanism of joint supervision over, communication and coordination with cooperative training institutions.

Article 26 Any training activity of business nature in the PFTZ in contravention of relevant laws, rules, regulations and these Interim Procedures shall be investigated and dealt with according to law.

Chapter V  Supplementary Provisions

Article 27 Enterprises from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan region or other economic organizations and inland enterprises or other economic organizations that intend to set up cooperative training institutions in the PFTZ shall take reference to these Interim Procedures.

Article 28 The Interim Procedures shall be effective as of the date of printing and distribution.

Shanghai Municipal Commission

Shanghai Municipal Commission of Commerce

Shanghai Municipal Human Resources and Social Security Bureau

Shanghai Municipal Administration for Industry and Commerce　　

October 30, 2013