Legal Analysis: The People's Republic of China (PRC) Private Education Promotion Law divides the nature of training institutions into operating and non-operating ones. According to the nature, the qualifications for running a school are different: for-profit institutions need school licenses and business licenses; Nonprofit organizations need school licenses.

Legal basis: Article 19 of the Law on the Promotion of Private Education in People's Republic of China (PRC), the organizers of private schools can 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.