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A Guide to Obtaining an ICP License or Filing in China
Updated on April 2023 | By QPSoftware Category:
The policy of China is often evolving. This article reflects the law as of April 2023, and we will update it whenever the rules change.
In this article, we will explain you which license you need to apply to host and operate in China a corporate website, an Ecommerce website, or a web application.
What’s the difference between an ICP filing and an ICP license? And what’s an EDI license?
ICP FILING (ICP 备案)
Also known as 'Bei'an' in Chinese, an ICP filing is required for all websites hosted on Chinese servers.
You can register for an ICP filing as a business or an individual and can apply directly from your server provider’s website. Businesses must apply for an ICP filing from the province the business is registered in.
An ICP filing is a simpler process, it is taking 2 to 4 weeks to obtain and is generally required for non-commercial websites or small-scale commercial websites that meet certain criteria. An ICP filing requires less documentation and takes less time to obtain than an ICP license.
Is an ICP filing necessary?
If you want to set up a website in China and host it on Chinese servers, you are required to have an ICP filing. This is essential for several reasons:
- You can get hosting services in China, which allows your website to load quickly for users in mainland China.
- You can access a China CDN (Content Delivery Network), which can improve the speed and reliability of your website.
- Chinese users value official registration and an ICP filing can help to earn their trust. This trust can lead to increased credibility and user loyalty for your website.
- You can run paid ads on platforms like Baidu PPC.
- You can open up Alipay and WeChat Pay functionality on your website, which is essential for conducting e-commerce in China.
Overall, having an ICP filing is crucial for anyone who wants to establish a website in China and access the vast Chinese market. It not only helps you comply with Chinese regulations, but it also opens up opportunities to reach Chinese users and conduct business more effectively.
ICP LICENSE (ICP 许可证)
An ICP license (Internet Content Provider), is required for large commercial websites that do not meet the criteria for an ICP filing. To obtain an ICP license, the website owner must provide more detailed documentation and meet additional requirements.
The process of obtaining an ICP license in China can be complex and time-consuming (few months).
The ICP license is also referred to as the B25 Information Services License (信息服务业务(仅限互联网信息服务)) in China’s VATS (Value Added Telecommunications Services) licensing scheme.
Both ICP filing and license are issued from the Chinese Ministry of Industry and Information Technology (MIIT).
Is an ICP license necessary?
An ICP license is not required for all websites, only for large-scale E-commerce website.
EDI LICENSE (EDI 许可证)
The EDI license (Electronic Data Interchange License), is only necessary if your E-commerce website sells third party products. Therefore, if you are operating a marketplace platform like Taobao, JD.com or a food delivery service like Elema in China, you will need to register for an EDI license.
The process of obtaining an EDI license in China can be complex and time-consuming (few months).
The EDI license is also referred to as the B21 Online Data Processing & Transaction Processing License (在线数据处理与交易业务经营许可证) under China’s VATS licensing scheme.
Is an EDI License necessary?
An EDI license is only necessary if you plan to allow third-party vendors to use your site as an intermediary in commercial activities.
What are the Requirements?
ICP FILING REQUIREMENTS
For individuals:
- Chinese nationals can apply for an ICP filing using their ID card (身份证).
- Foreign nationals can apply for an ICP filing using their passport, provided they meet the requirements of the province where they are applying. These requirements may include having a Chinese bank account, a Chinese phone number capable of receiving SMS messages, a Chinese address, and fluent in Chinese.
An individual can apply for an ICP filing without registering a company in China, but it must be for personal use only and not for business purposes.
For companies:
- 100% domestic businesses, Sino-foreign joint ventures, and Wholly Foreign-Owned Enterprises (WFOE) can all apply with their Chinese business license.
ICP LICENSE REQUIREMENTS
ICP licenses are only available for companies and have more stringent requirements than ICP filings. To obtain an ICP license, a company must meet the following criteria:
- Business registration: The company applying for the ICP license must be a legally registered entity in China, such as a Wholly Foreign-Owned Enterprise (WFOE) or a Joint Venture (JV).
- The company must have 1 million RMB in registered capital for in-province businesses or 10 million RMB in registered capital for cross-province businesses.
- The company must provide proof of paying three consecutive months of social security for three employees.
- Physical office: The company must have a physical office in China, which can be a rented office or a virtual office with a local agent.
- Content review: The website content must comply with relevant Chinese laws and regulations related to online publishing and data protection.
- Technical requirements: The website must meet technical requirements related to server and network security, such as the use of an ICP-licensed hosting provider.
- Application materials: The company must submit a range of application materials, including business licenses, website registration certificates, and proof of technical capability to host a website in China.
EDI LICENSE REQUIREMENTS
An EDI license requires:
- Business registration: The company applying for the EDI license must be a legally registered entity in China, such as a Wholly Foreign-Owned Enterprise (WFOE) or a Joint Venture (JV).
- Customs declaration experience: The company must have experience in handling customs declaration documents in China and must have a clean record of customs compliance.
- Technical capability: The company must have the technical capability to handle electronic data interchange operations, such as a dedicated server, an electronic signature system, and an approved customs data format.
- IT security: The company must have a secure IT environment to protect the integrity and confidentiality of customs data and must comply with relevant Chinese laws and regulations related to data protection.
- Financial capability: The company must have sufficient financial capability to cover the cost of customs duties, taxes, and other fees related to import and export activities.
- Application materials: The company must submit a range of application materials, including business licenses, proof of technical capability, and financial statements.
How to Get an ICP Filing?
Every province in China has different regulations. We’re not talking about significant differences here, but some provinces are certainly easier to deal with than others. In general, these are the steps you need to follow for an ICP filing:
You must use your real identity/business registration to purchase the domain name. If you are buying a domain as a company, ensure that the business name used is written with the exact same Chinese characters as listed on your business registration.
Verification will take one or two working days.
- Register a domain in China with a Chinese-based domain name registrar. The registrar must also hold an authorization by the MIIT.
If you are submitting your application under a personal capacity, you’ll need to provide: A scan or clear photo of your personal ID information.
If you are submitting your application as a company, you’ll need to provide:
- Buy a hosting plan from a Chinese provider (we’ll use Aliyun as an example).
- Register for the Aliyun ICP Management System and log in to fill out the registration form.
- Apply for ICP Filing through Aliyun. Aliyun will call your phone number to verify the information.
- Business license
- ID/passport of legal representative
- ID/passport of website representative
- Verification of website representative (AWS requires a photo on a specific background, Aliyun requires using a mobile terminal for face verification)
- Company contact information: ID, name, mobile number, address, and email
- Other documents required by different provinces: Domain name certificate, a letter of authorization (if the website representative is not the same as legal representative), a letter of commitment for Shanghai entity, etc
- Verification will take 2-4 weeks and you will receive a text message confirmation once it’s successful.
- Go to the MIIT ICP Filing website, enter your company full name and receive your ICP Filing number.
Example of legal representative verification taken by photo for AWS with a blue background to use sent by post mail.
How Long does It Take to Get an ICP License or an EDI License?
The time it takes to obtain an ICP (Internet Content Provider) license or an EDI (Electronic Data Interchange) license can vary depending on the specific requirements of the licensing authorities in the jurisdiction where you are applying.
The process of obtaining one of these licenses can take anywhere from a few weeks to several months. The specific timeline will depend on the completeness of the application, the complexity of the business operation, and the regulatory requirements.
What is a PSB Filing (Gong’An Bei’An 公安备案)?
The PSB filing is a registration process required by the Public Security Bureau (PSB) specifically for websites that provide services related to public security, such as those involved in news, publishing, and online gaming. It involves submitting an application to the PSB and providing detailed information about the website, including its domain name, hosting provider, and content. Once approved, the website is issued a Gong'An Bei'An number, which must be displayed on the site's homepage.
In most cases, after successfully obtaining your ICP license or filing, you will receive a text message to the number you registered with. The text message will prompt you with the steps to applying for a PSB filing.
This should be completed within 30 days of your website going live.
Where to Place Your ICP Number(s)?
ICP license, EDI license, ICP filing, and PSB Filing numbers must be displayed on your website in a clear and visible way, we recommend placing it on the footer of your website. ICP license numbers also contain a Chinese character that indicates the province in which the licenses were issued.
Here we see the location of both the PSB Filing and ICP License numbers on the footer of Baidu’s website.
ICP Registration Breakdown
|
|
ICP Filing |
ICP License |
EDI License |
|
When |
Before going live |
After getting ICP filing |
After getting ICP filing |
|
Needed for |
All websites hosted on Chinese servers |
Websites with payment functionality |
Marketplace platforms hosting third party sellers |
|
Capital |
None |
1 million RMB for in province businesses, 10 million RMB for nationwide businesses |
1 million RMB for in province businesses, 10 million RMB for nationwide businesses |
|
Who can apply |
Individuals (includes foreigners living in China) and businesses (100% domestic, joint ventures, WFOE) |
100% domestic companies and joint ventures with >50% Chinese ownership |
100% domestic companies and WFOE |
|
Processing time |
Up to 30 days |
From a few weeks to several months |
From a few weeks to several months |
|
Validity Period |
No expiration |
5 years, requires annual inspections |
5 years, requires annual inspections |
|
Example |
University marketing website |
A brand’s E-commerce website selling their own products |
Third party seller platforms like Tmall |
What should Your Next Step be?
If you want to have a stunning website, Wechat mini program or mobile app, host your website in China, register for a Chinese domain name or an ICP filing. Contact us. We will partner with you to make the process as smooth as possible.
China is the largest E-commerce market in the world, with a 1.15 trillion USD market size. Retail E-commerce’s share of total retail sales in China is also the highest in the world, reaching 46.3% in 2022. China’s unique digital ecosystem is also responsible for the rise of the most recent digital marketing strategies, such as livestream sales and social E-commerce.
While growth has slowed down in recent years, China remains by far the most mature E-commerce market in the world, with the largest population of online consumers. Analysts worldwide agree that China still has tremendous growth potential, especially as it emerges from three years of strict COVID policies.
All this means that as entrepreneurs worldwide increasingly target the Chinese market as their next move, they must learn to establish a strong Chinese digital presence.
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