Legal basis: Article 26 of the Regulations of People's Republic of China (PRC) Municipality on the Administration of Registration of Enterprise Legal Persons. Institutions and scientific and technological social organizations shall establish enterprise legal persons in accordance with the relevant provisions of the state, and enterprises shall not engage in business activities until they have been approved and registered by the registration authority and obtained the Business License for Enterprise Legal Persons. Article 27 In accordance with the relevant provisions of the state, institutions that operate as enterprises and whose funds are no longer appropriated by the state and scientific and technological social organizations engaged in business activities can engage in business activities only after they have been approved by the registration authority, applied for registration as an enterprise legal person and obtained the Business License for Enterprise Legal Person.