What is China’s Education Business License and Who Needs One?

The Education Business License, known as the 教育营业执照 in Chinese, is a legal requirement for any organisation seeking to establish and operate any form of private educational institution in China. This certificate, overseen by the Ministry of Education (MOE), serves as official recognition of the institution’s legal business status. This authorises the institution to conduct educational activities within its approved scope. It is important to note that the Education Business License is the same as China’s Business License (营业执照) but with extra documentation required for the business to qualify and operate under the scope of education.

There are three key laws that form the legal basis for the Education Business License:

• Law of the People’s Republic of China on the Promotion of Privately-run Schools (中华人民共和国民办教育促进法, Amended in 2018) 
• Law of the People’s Republic of China on Administrative Licensing (中华人民共和国行政许可法, Revised in 2019)
• Implementing Regulations for the Law on the Promotion of Private Education (中华人民共和国民办教育促进法实施条例, Revised in 2021).

These regulations are designed to ensure the proper functioning, accountability, and legal compliance of private educational institutions, particularly in sectors critical to social development such as vocational training, language education, and professional skills development. Any entity operating as a private educational institution without this license is considered illegal and risks enforcement actions, including fines and mandatory dissolution.

Who Needs an Education Business License?

If your organisation operates as a private educational institution providing training services or conducting educational activities for commercial purposes, you need an Education Business License. This includes:

Educational Institutions:

• Private vocational training centers
• Language schools and institutes
• Professional skills training academies
• Technical education providers

Training Organisations:

• Corporate training service providers
• Professional certification training centers
• Continuing education providers
• Online education platforms with physical presence

Specialised Training Bodies:

• Trade and craft training institutes
• Technology and IT training centers
• Healthcare and medical training providers
• Financial and business training organizations

Educational Support Organisations:

• Tutoring and supplementary education centers
• Examination preparation institutes
• Educational consulting firms offering training
• Career development and guidance centers

Wholly Foreign-Owned Entities (WFOEs) can obtain this license and are advised to work with local partners, such as AppInChina, to navigate the application process and ensure compliance with all regulatory requirements.

Why Do You Need This License?

All organisations that provide private educational services or conduct training activities for commercial purposes in China must obtain an Education Business License before legally operating.

The license is required for various official activities, including

• Signing cooperation agreements and contracts with students and partners
• Applying for educational grants and funding opportunities
• Handling real estate registration and property rights for educational facilities
• Opening bank accounts and financial services for educational operations
• Tax registration and compliance for educational businesses
• Annual inspections and educational certificate reviews
• Government procurement and bidding processes for educational services

Operating without an Education Business License may result in:

Legal Consequences:

• Fines ranging from 10,000 to 50,000 CNY
• Orders to cease operations immediately
• Confiscation of assets and illegal income
• Criminal liability for responsible individuals

Operational Restrictions:

• Inability to open business bank accounts
• Restrictions on signing official contracts
• Blocked access to government funding and grants
• Exclusion from educational procurement opportunities

Overall, if your company deals with any form of private education in China, acquiring the Education Business License is the basic legal requirement that will help your company establish both compliance and reputation in China’s bustling education market. 

What are the Application Prerequisites?

Below is an overview of what is typically required to apply for China’s Education Business License:

Documentation Requirements:

• Application request for the Education Business License
• Approval form for the Education Business License
• Fixed assets evaluation, registered capital verification reports, and certificates issued by statutory agencies
• Copy of the certificate of ownership of the school premises (or the certificate of ownership of the lessor, and provide the lease contract)
• The main facilities, equipment list, and equipment purchase invoice copy
• School charter, development plan, and various management systems
• Teaching (training) plans, outlines, and teaching materials corresponding to the training occupation (type of work)
• Principals, teaching management personnel, career guidance personnel credentials, including copies of title (qualification) certificate, education certificate and relevant work experience, employment agreement
• Roster of teaching staff with ID card, title (qualification) certificate, education certificate, teacher qualification certificate copy, employment agreement

Qualification Criteria:

• Clear educational mission and objectives
• Adequate funding sources and financial stability
• Qualified management team and professional teaching staff
• Appropriate facilities and equipment for educational activities
• Compliance with relevant educational industry standards
• Approval from sector-specific regulatory authorities

Review Process:

• Initial application submission to local Education Bureau
• Document review and verification (15-30 days)
• On-site inspection of facilities and operations
• Review by expert evaluation committee
• Final approval and license issuance

All documents must typically be submitted in both original and copy form and may require in-person verification at multiple stages.

Can Foreign Companies Obtain this License?

Yes. Wholly Foreign-Owned Entities (WFOEs) can obtain an Education Business License. However, foreign organisations must navigate complex regulatory requirements and benefit from working with local partners such as AppInChina to ensure compliance with all application procedures and ongoing regulatory obligations.

How Can AppInChina Help?

AppInChina provides expert support to help foreign organisations understand and comply with China’s education business licensing requirements. We can help by:

Application Support:

• Document preparation and translation services
• Liaison with local Education Bureaus and institutional affairs departments
• Application tracking and follow-up
• Regulatory compliance guidance

Structural Advisory:

• Educational business structure optimization
• Partnership arrangement guidance
• Governance framework development
• Risk mitigation strategies

Contact us to discuss your educational business registration strategy and discover the most effective path to establishing your private educational institution in China’s regulatory environment.