Order of the Ministry of Civil Affairs of the People's Republic of China

No. 48

The Permitting Measures for the Establishment of Elderly Service Institutions, as approved at the executive meeting of the Ministry of Civil Affairs on June 27, 2013 are hereby promulgated for implementation as of July 1, 2013.

Minister: Li Liguo

June 28, 2013

Permitting Measures for the Establishment of Elderly Service Institutions

Chapter I General Provisions

Article 1 In order to standardize the establishment permission of elderly service institutions and promote the healthy development of elderly service institutions, the Permitting Measures for the Establishment of Elderly Service Institutions (hereinafter referred to as the "Measures") are hereby stipulated in accordance with the Law on the Protection of the Rights and Interests of the Elderly of the People's Republic of China, relevant laws and administrative regulations.

Article 2 The Measures shall apply to the application for, acceptance, examination, decision and supervision and inspection of the establishment permission of elderly service institutions.

Article 3 The "elderly service institutions" herein refer to the institutions providing concentrated residence accommodation and care services for the elderly.

Article 4 The civil affairs departments under the State Council shall be in charge of the establishment permission of elderly service institutions in China.

The civil affairs departments under the local people's governments above the county level shall be in charge of the establishment permission of elderly service institutions within their respective administrative areas.

Article 5 The implementation of the establishment permission of elderly service institutions shall be based on the principles of openness, fairness, justness.

Chapter II Conditions and Procedures

Article 6 The establisher shall meet the following requirements when establishing an elderly service institution:

1.    The establisher shall have a name, domicile, articles of association and management system;

2.    The establisher shall provide basic living rooms, facilities and equipment and activity space meeting specifications and technical standards relating to elderly service institutions, national environmental protection provisions, fire protection provisions and health, epidemic prevention requirements and others;

3.    The establisher shall have qualified administrative staff, professionals and service staff to render services;

4.    The establisher shall have the funds corresponding to the service items and the scale;

5.    The establisher shall provide ten or more beds;

6.    Other conditions stipulated by laws and regulations.

Article 7 Legally established organizations and natural persons with full capacity for civil conducts may apply for establishment of elderly service institutions to civil affairs departments under the people's governments at or above the county level where the elderly service institutions are located.

Article 8 Civil affairs departments under the people's governments of counties, cities not divided into districts and districts of municipalities directly under the Central Government shall implement the establishment permission for elderly service institutions within their respective administrative areas.

The civil affairs departments under the people's government of municipalities with subordinate districts shall implement the establishment permission for elderly service institutions, places of domicile of which are within the municipal districts.

The civil affairs departments under the people's government of municipalities with subordinate districts may authorize the civil affairs departments under the people's government of their subordinate districts to implement the permission.

Article 9 The establishment permission of an elderly service institution funded and established by the people's government above the provincial level to realize practical and demonstration functions may be applied to the civil affairs department under the people's government of the same level.

The permission items as specified in the foregoing paragraphs may be authorized to the civil affairs department of the lower people's government for implementation.

Article 10 The permission of elderly service institutions by foreign organizations or individuals with sole proprietorship, or by foreign organizations or individuals jointly with Chinese organizations or individuals in the form of partnership or joint ventures, or by organizations or individuals from Hong Kong, Macao or Taiwan region or overseas Chinese with sole proprietorship, or by organizations or individuals from Hong Kong, Macao or Taiwan region or overseas Chinese jointly with organizations or individuals in Chinese Mainland in the form of partnership or joint ventures shall be implemented by the civil affairs department of the provincial people's governments where the elderly service institutions are located or the civil affairs department (prefectural administrative offices) of the municipal people's government with subordinate districts authorized by the aforesaid government.

Where laws and administrative regulations otherwise agreed, such provisions shall prevail.

Article 11 The permitting authority shall provide guidance and support concerning conditions for establishment, and submission of materials in accordance with the applicant's demands and conditions for setup preparation of an elderly service institution.

Article 12 The applicant shall submit the following documents and materials to the permitting authority when applying for the establishment of an elderly service institution:

1.    Application for establishment;

2.    Evidence of the qualifications of the applicant, proposed legal representative or main principal;

3.    Institution name, articles of association and management system in consistency with the registration provisions;

4.    Final acceptance certificate issued by the construction unit, acceptance report or review opinions issued by the departments of epidemic prevention and environmental protection, opinions on review of fire protection design of the construction project and acceptance of fire protection of the construction project or evidence of fire protection record-keeping issued by the fire protection department;

5.    Ownership certificate of self-owned property right or housing lease contract of the premises;

6.    Lists, identification documents and documentary evidence of health status of the administrative staff, professionals and the service staff;

7.    The proof of source of funds, certificate on capital verification and assets appraisal report;

8.    Other materials that shall be provided in accordance with laws, regulations and rules.

Article 13 The permitting authority shall examine the written documents and materials submitted by the applicant and carry out field inspection within 20 working days immediately after the acceptance of the application for establishment. The applicant meeting the requirements shall be awarded the establishment license of elderly service institution (hereinafter referred to as the "establishment license"); otherwise, the applicant shall be notified of the reasons in written form.

Article 14 For an elderly service institution, permission shall be acquired and registration shall be made according to the law. Before acquiring permission and making registration according to the law, the elderly service institution shall neither collect charges in any name nor accommodate elderly persons.

Chapter III Permission Management

Article 15 Name, domicile, legal representative or main principal, scope of services and term of validity and other information of the institution shall be specified in an establishment license.

An establishment license will be issued an original and a duplicate of the same legal force. The format of the establishment license shall be uniformly specified by the civil affairs department under the State Council.

Article 16 The establishment license has a period of validity of five years. An elderly service institution shall apply for renewal of the establishment license 30 days before the expiration of the establishment license by presenting the establishment license, duplicate of the certificate of registration and the situation report on the provision of elderly services.

The permitting authority shall make the decision on whether to permit the renewal according to conditions for establishment before the expiration, and if no decision has been made within the time limit, the renewal shall be deemed to be permitted.

Article 17 An elderly service institution that intends to establish branches shall, in accordance with the provisions as specified in Articles 8, 9 and 10 hereunder, go through the necessary formalities for establishment permission with the civil affairs department under the people's government above the county level of the place where the branches are located. Where laws and administrative regulations specify other provisions for branches, such provisions shall prevail.

Article 18 An elderly service institution that intends to change its name, legal representative, main principal or scope of services shall go through alternation formalities with the original permitting authority.

An elderly service institution that intends to change its domicile shall go through the reapplication formalities for establishment permission.

Article 19 An elderly service institution that is to be disbanded by itself or fails to continue rendering services shall be terminated, and the establishment license thereof shall be return back to the original permitting authority and nullify its registration.

An elderly service institution that terminates the services shall be liquidated in accordance with the relevant provisions.

Article 20 An elderly service institution that suspends services due to separation, merger, reconstruction,  expansion or other reasons, or terminates services due to disbandment, it shall apply to the original permitting authority, submit resettlement proposals for the elderly, and carry out the same upon approval. The services shall not be suspended or terminated without approval.

Article 21 The permitting authority shall develop a healthy information management system for the establishment permission of elderly service institutions, and make timely disclosure of information on the establishment permission of elderly service institutions.

Chapter IV Supervision and Inspection

Article 22 The permitting authority shall supervise and inspect the changes concerning the items of an elderly service institution specified in the establishment license such as the name, domicile, legal representative or main principal and scope of services, and the elderly service institution shall accept and provide cooperation for the supervision and inspection.

The permitting authority shall not charge any expense for implementing establishment permission of elderly service institutions and the supervision and inspection of the relevant matters.

Article 23 Under any of the following circumstances, the permitting authority or its superior authorities, in accordance with the request put forward by the interested parties or on the basis of powers, may withdraw the permission:

1.    The decision of permission has been made under the condition that officers of the permitting authority abuse power or neglect proper duties;

2.    The decision of permission has been made under the condition of exceeding legitimate authority;

3.    The decision of permission has been made under the condition of violating legal procedures;

4.    The permission has been made to an elderly service institution that does not apply with legal conditions;

5.    Other situations where the permission may be withdrawn according to the law.

The permitting authority shall withdraw the permission once finding that an elderly service institution has obtained the permission by improper means such as deception or bribery.

The permitting authority, after withdrawing the permission according to the law, shall notify the relevant registration management organ.

Article 24 When an elderly service institution is under any of the following circumstances, the permitting authority shall cancel the permission, and make a public announcement:

1.    The establishment license expires but has not been renewed;

2.    An elderly service institution has been terminated according to the law;

3.    The permission has been withdrawn or revoked according to the law;

4.    The certificate of registration has been revoked by the registration management organ according to the law;

5.    The permission items cannot be implemented due to force majeure;

6.    Other circumstances under which the permission shall be revoked as stipulated by laws and regulations .

The permitting authority, after withdrawal of the permission according to the law, shall notify relevant registration management organs.

Article 25 Any unit or individual has the right to report the acts in violation of the Measures to the permitting authority, which shall promptly verify and handle the same.

Chapter V Legal Liability

Article 26 If an elderly service institution commits any one of the following acts, it shall be warned by the permitting authority and be fined up to CNY30,000; if the act constitutes a crime, the it shall be investigated for criminal responsibility in accordance with the law:

1.    Where the institution does not go through alternation or termination procedures in accordance with the law;

2.    Where the institution alters, resells, leases, lends or assigns its establishment license.

Article 27 If an elderly service institution is established without permission, it shall be ordered by the permitting authority to rectify the situation; those elderly service institutions that have caused personal or property damage, shall bear civil liability according to the law; those in violation of the public security administration provisions shall be punished by the public security organ in accordance with relevant provisions of Law of the People's Republic of China on Penalties for the Violation of Public Security Administration; and those whose violation constitutes a crime shall be investigated for criminal responsibility according to the law.

Article 28 If a permitting authority or any of its work staff abuses their authority, neglects their duties or seeks for illegal benefits in establishment permission application, acceptance, examination, decision as well as supervision and inspection of elderly service institutions, it shall be ordered by the civil affairs department of a higher level to make rectifications; in case that serious sequences are incurred, the person in direct charge and other persons in direct charge shall be punished according to the law; if the act constitutes a crime, the offender shall be investigated for criminal responsibility in accordance with the law.

Chapter VI Supplementary Rules

Article 29 For an elderly service institution established prior to the implementation of the Measures, if the conditions required in the Measures are met, it shall go through relevant procedures in accordance with the provisions of the Measures.

For an elderly service institution established prior to the implementation of the Measures, if the conditions required in the Measures are not met, it shall be rectified and reformed within one year after the implementation of the Measures. For a rural five guarantees service agency, it shall be rectified and reformed within two years after the implementation of the Measures.

Article 30 The Measures do not apply to elderly service institutions of urban and rural communities that provide daytime care and mutual aids for the aged.

Article 31 The Measures shall come into force as of July 1, 2013.