Paid websites require a license; platforms that facilitate transactions need a different type of permit; free sites only need to be registered.

Registration is free of charge. Obtaining a Value-Added Telecommunications Business License, however, involves costs; this license governs whether websites that charge users can legally operate. To apply for this license, you must first establish a company. For operations limited to one province, the registered capital must be at least 1 million RMB; for nationwide operations, it must be at least 10 million RMB. The review period lasts 60 days, and the license remains valid for 5 years.

The regulations state: “The state implements a licensing system for commercial Internet information services and a registration system for non-commercial ones. No entity may provide Internet information services without obtaining a license or completing registration.” In other words, paid services must first secure a license, while free ones must register; operating without either is prohibited. “Commercial services” are defined as activities involving paid provision of information or webpage creation to users. Platforms that facilitate transactions are classified under Online Data Processing and Transaction Processing Services, commonly abbreviated as EDI. These services involve using data and transaction platforms linked to public communication networks to handle data processing and transactions on behalf of users. Such activities include transaction processing, electronic data exchange, and data handling via network devices. Operating without a license or exceeding its scope of permission results in confiscation of all illegal revenues and fines ranging from 3 to 5 times that amount. If no illegal revenues exist or they are under 50,000 RMB, fines between 100,000 and 1,000,000 RMB apply; severe violations may lead to website closure nationwide.

国务院 (2000). 互联网信息服务管理办法（国务院令第 292 号，2024 年 12 月 6 日第二次修订，第三、四、七、十九条）. https://www.gov.cn/gongbao/content/2011/content_1860864.htm ; 国务院 (2024). 关于修改和废止部分行政法规的决定（国务院令第 797 号，第十八项）. https://www.gov.cn/gongbao/2025/issue_11786/202501/content_6997034.html ; 国务院 (2000). 电信条例（2016 年第二次修订，第七、九、十三、六十九条）. https://www.gov.cn/gongbao/content/2016/content_5139478.htm ; 工业和信息化部 (2017). 电信业务经营许可管理办法（工信部令第 42 号，第六、九、十一、十四条）. https://www.gov.cn/gongbao/content/2017/content_5240090.htm

To determine whether your platform qualifies as an EDI service, compare its activities to the definitions listed in the Telecommunications Business Classification Catalogue. No official regulation explicitly states that e-commerce platforms handling transactions and payments must obtain an EDI license. The Ministry of Industry and Information Technology’s guidelines merely advise applying for the appropriate license based on actual business activities. Therefore, this section merely outlines definitions without making any definitive conclusions. Additionally, only legally incorporated companies may apply for this license; individuals are ineligible.