One of the most important licenses for commercial internet operations in China is the ICP License, also known as the B25 License or ICP许可证. Understanding this commercial internet license is essential for any business planning to generate revenue through digital services in China.
This guide will address all of the key questions regarding the ICP License such as the legal foudation, how to apply for one, and how to ensure that you remain compliant.
The ICP License, formally known as the “Internet Information Service License” (互联网信息服务许可证) or B25 Commercial ICP License, is a commercial operating license required for businesses that provide paid internet information services in Mainland China. Unlike the basic ICP Filing which is free and required for all websites, the ICP License is specifically designed for commercial operations that generate revenue through online activities.
The B25 designation refers to the specific category within China’s telecommunications business classification system, where “B25” represents “Information Service Business (Limited to Internet Information Services)” or 信息服务业务(仅限互联网信息服务).
This license serves as the government’s primary mechanism for regulating commercial internet activities, ensuring that businesses operating for profit in China’s digital market comply with local laws, pay appropriate taxes, and maintain proper oversight of their commercial activities.
The ICP License requirement is not optional, it is mandated by Chinese law under the “Administrative Measures for Internet Information Services” (互联网信息服务管理办法). Understanding the legal foundation helps clarify why commercial operations cannot operate legally in China without the ICP License.
Article 3 of the regulations provides clear definitions that directly apply to all forms of online commercial operations in China:
“Internet-based information services are divided into services of a commercial nature and services of a non-commercial nature.
Commercial internet-based information services refer to compensatory services which provide information to or create web pages for online users through the Internet.
Non-commercial internet-based information services refer to non-compensatory services which supply, through the Internet, to online users information which is open to and shared by the general public.”
Article 4 establishes the mandatory licensing framework:
“The State shall implement a license system for internet-based information services of a commercial nature, and implement a filing-for-record system for internet-based information services of a non-commercial nature.
No one shall engage in internet-based information services without having obtained a license or having completed the filing-for-record procedures.”
It is important to note that this applies to all forms of commercial activity, no matter the size of operation, the business model or the client base (i.e, B2B or B2C). As part of the Value-Added Telecommunications Services (VATS) or 增值电信业务, the Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例) also applies to the Commercial ICP License.
Article 7 establishes that all telecommuncations businesses will require a license
“The State shall implement a licensing system for telecommunications businesses in accordance with the classification of telecommunications businesses. Telecom operators shall apply to the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality for a telecommunications business permit pursuant to the provisions of these Regulations. No organisation or individual shall engage in telecommunications business without obtaining a telecommunications business permit.
Article 8 clearly states that there are two types of telecommunications businesses: basic telecommunications and Value-added telecommuncations.
“Telecommunications businesses are categorised into basic telecommunications businesses and value-added telecommunications businesses. Basic telecommunications businesses shall mean the businesses of providing public network infrastructure, public data transmission and basic voice communication services. Value-added telecommunications businesses shall mean making use of public network infrastructure to provide telecommunications and information services.“
Classification of Value-Added Services
According to the appendix of the Telecommunications Regulations, Internet information service is specifically listed as item (8) under “Value-added telecommunications services”
What is the Difference Between the ICP License and the ICP Filing?
Many businesses struggle to understand when they need an ICP License as opposed to an ICP Filing. The distinction is fundamental and based on the commercial nature of your online activities:
It is important to note that the large majority of commercial operations in China require both an ICP Filing and an ICP License. For example, if you operate an e-commerce website that displays product information (requiring ICP Filing) and processes online transactions (requiring ICP License), you need both registrations.
The ICP License is mandatory for businesses engaged in any form of commercial internet activities this includes, but is not limited to:
E-commerce and Online Retail
According to MIIT regulations, companies applying for Value-Added Telecommunications licenses must meet these mandatory conditions:
1. Legal Entity Status: Must be a legally established company registered in China
2. Financial Requirements:
3. Technical and Human Resources: Must have appropriate funding and professional personnel suitable for the business activities
4. Service Capability: Must demonstrate credibility and capability to provide long-term services to users
5. Infrastructure Requirements: Must have necessary premises, facilities, and technical solutions
6. Clean Record: The company and its major investors and senior management cannot be listed on the telecommunications business operations blacklist
7. Compliance History: Cannot have provided false application materials within the past year
Foreign Investment Additional Requirements:
According to official MIIT application forms, companies must designate specific responsible personnel:
All responsible persons must provide valid contact information and meet real-name verification requirements for mobile phone numbers.
Companies must provide comprehensive personnel verification:
The official ICP License application consists of several mandatory sections:
ICP License applications must be submitted to the communications administration bureau in the province where your business is registered. Each province may have additional specific requirements, processing procedures, and approval criteria. Some provinces are more favorable to foreign investment and may have streamlined processes, while others maintain stricter requirements.
The ICP License application process is complex and typically takes 2-3months from initial preparation to final approval. This will however depend greatly on multiple factors, including whether or not a Chinese subsidiary has already been established and how fast the required documentation can be prepared.
Generally, due to the complexity of this process, it is recommended you work with a partner that is familiar with this process, such as AppInChina. This will not only reduce application delays, but will also increase the likelihood of the applicatio being successful.
It is required by the MIIT that any system changes or changes to operations under the ICP License must be reported. An annual review should also be conducted by the agency employed for the license application. If the license was achieved without an agency, this review should be done internally in order to ensure ongoing compliance.
Operating commercial internet services in China without proper ICP licensing can result in severe penalties. Chapter 6 of the Telecommunications Regulations of the People’s Republic of China 中华人民共和国电信条例 (2016修订) outlines the different penalties that can be issued:
Navigating China’s ICP License requirements can be complex and time-consuming. At AppInChina, we provide comprehensive ICP License services to help international businesses succeed in China. We can help by:
Contact us to get started with deploying your commercial solution in China.