Private non-enterprise units that have been established before the implementation of the Interim Regulations on the Administration of Registration of Private Non-enterprise Units shall apply for registration in accordance with the Regulations and these registration instructions.

First look at its purpose and use. All enterprises, including service-oriented enterprises, aim at maximizing profits through their own business activities, and profit is the starting point of all enterprises. Private non-enterprise units, on the other hand, aim at providing public welfare services to the society and promoting social progress and development through their own service activities, and their purpose is not profit. Social welfare is the biggest feature of private non-enterprise units. It is precisely because of this that the state will implement some special tax relief policies for private non-enterprise units.

Second, it is different from financial management and property distribution system. The profits of enterprises can be distributed among members, and the property after liquidation can be distributed among members, while the surplus of private non-enterprise units and the surplus property after liquidation can only be used for social welfare undertakings, but not among members.