Legal basis: Article 18 of the Law on the Promotion of Private Education in People's Republic of China (PRC), the examination and approval authority issues a school license to a formally established private school. The examination and approval authority shall explain the reasons for not approving the formal establishment.
Article 19 The organizers of private schools may independently choose to set up non-profit or profit-making private schools. However, for-profit private schools that implement compulsory education may not be established. The organizers of non-profit private schools shall not obtain school income, and all the school balances shall be used for running schools. The organizers of for-profit private schools can obtain school income, and the school balance shall be handled in accordance with the Company Law and other relevant laws and administrative regulations. After obtaining a school license, a private school shall register as a legal person, which shall be handled by the registration authority according to law.
Article 62 If a private school commits any of the following acts, the administrative department of education, human resources and social security of the people's government at or above the county level or other relevant departments shall order it to make corrections within a time limit and give it a warning; If there is illegal income, the illegal income shall be confiscated after the fee is refunded; If the circumstances are serious, it shall be ordered to stop enrolling students and revoke the school license; If the case constitutes a crime, criminal responsibility shall be investigated according to law: (1) splitting or merging private schools without authorization; (2) changing the name, level, category and sponsor of a private school without authorization; (3) publishing false enrollment brochures or advertisements to defraud money; (4) Illegally issuing or forging academic certificates, graduation certificates, training certificates and vocational qualification certificates; (five) management confusion seriously affects education and teaching, resulting in adverse social impact; (six) submit false documents or take other fraudulent means to conceal important facts to defraud the school license; (7) Forging, altering, buying, selling, renting or lending a school license; (eight) malicious termination of running a school, withdrawing funds or misappropriating school funds.