Guangdong has loosened controls on eight categories of NGOs, allowing them to register without a 'patron' government agency.
While the move indicates a change in the official stance on non-government organisations, analysts warn that those focusing on human rights or politics will continue to be oppressed.
A draft rule on further 'fostering, developing and managing social organisations', scheduled to take effect from July 1, says social organisations will be able to register directly with the civil affairs authorities without the backing of a government agency.
By 2015, most social organisations should be able to provide public services and products with just the government's authorisation, the draft says.
Finding a patron is the biggest hurdle for NGOs, particularly rights advocacy groups, because administrative departments are worried about being held responsible for NGOs' actions. Many rights groups have had to register as companies.
Under the new rule, government agencies in fields including industry, trade, commerce, charity and social services will no longer play the role of 'administrator' but be 'advisers' in the registration process.