The Complete Guide to China’s VATS Licenses
Value-Added Telecommunications Services (VATS) Licenses, or 增值电信业务经营许可证 in Chinese, are mandatory regulatory permits for businesses providing telecommunications and information services in China. These licenses, issued by the Ministry of Industry and Information Technology (MIIT), represent one of China’s most important and complex compliance requirements for digital businesses. From e-commerce platforms to cloud services, understanding the VATS licenses is essential for any company operating in China. This guide covers all of the key questions, including what VATS licenses are, how to apply for them, and what happens when you are non-compliant.
What are China’s VATS Licenses?
China’s VATS licenses authorise businesses to provide value-added telecommunications services using public network infrastructure to deliver telecommunications and information services. China’s telecommunications regulatory framework divides all telecom services into two categories: Basic Telecommunications Services (BTS) and Value-Added Telecommunications Services (VATS). While BTS covers the physical network infrastructure and basic voice/data transmission, VATS encompasses the vast majority of internet-based business activities.
The scope of VATS licensing is broad. The Telecommunications Services Classification Catalogue (电信业务分类目录) defines all VATS categories and specific services, each requiring specific licenses.
Types of VATS Licenses
China’s VATS licensing system includes multiple categories, each addressing different business activities, below are some examples:
| License Type | Services Covered | Learn More |
| B25 ICP License | Information services including commercial websites, mobile apps, content platforms | ICP License Guide |
| B21 EDI License | E-commerce platforms, online transaction processing, B2B data exchange platforms | EDI License Guide |
| B11 IDC License | Internet data centers, server hosting, cloud infrastructure services | IDC License Guide |
| B12 CDN License | Content distribution network services, content caching and acceleration | CDN License Guide |
| B13 VPN License | Domestic virtual private network services | VPN License Guide |
| B24 Call Center License | Domestic call center services, customer service operations | Call Center License Guide |
Why are China’s VATS Licenses Important?
VATS licenses are legally mandated prerequisites for operating digital businesses in China. The requirement stems from three foundational legal frameworks:
- Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例) – The core regulatory framework governing all telecommunications activities. Article 7 explicitly states:
“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.”
- Administrative Measures on Telecommunications Business Permits (电信业务经营许可管理办法) – Issued by MIIT, these measures establish specific eligibility criteria, application procedures, and operational requirements for VATS license holders.
- Telecommunications Services Classification Catalogue (电信业务分类目录) – This catalogue, most recently updated in 2019, defines and classifies each sub-category of telecommunications services, determining which business activities require which licenses.
Operating without required VATS licenses exposes businesses to significant legal and operational risks. Beyond regulatory penalties, unlicensed operations can trigger business shutdowns, payment processing restrictions, and reputational damage that severely impacts market access.
Who Needs VATS Licenses?
Any business providing value-added telecommunications services to users in China requires the appropriate VATS license. The breadth of services requiring licenses extends far beyond traditional telecommunications.
Businesses requiring VATS Licenses include:
- E-commerce Platforms: Third-party marketplaces facilitating transactions between buyers and sellers will require a B21 EDI License
- Commercial Websites and Apps: Any website or application conducting commercial activities or collecting user information will require a B25 ICP License
- Cloud Service Providers: Companies offering infrastructure-as-a-service, platform-as-a-service, or software-as-a-service will require B11 IDC License and potentially B25 ICP License
- Content Platforms: Social media, video streaming, news aggregation, and content distribution services will require a B25 ICP License
- Data Centers: Facilities providing server hosting, colocation, or managed hosting services will require a B11 IDC License
- Online Education Platforms: Distance learning and educational content delivery services will require a B25 ICP License
The determining factor is not the company’s location but rather where services are provided and accessed. If your digital service is accessible to users in China, whether through local servers, CDNs, or cross-border data transmission, VATS licensing requirements likely apply.
Can Foreign Companies Get VATS Licenses?
Yes. Wholly foreign-owned enterprises (WFOEs) established in China’s Pilot Regions can obtain certain VATS Licenses. On April 8, 2024, MIIT issued the Notice on Launching Pilot Work for Expanding Opening Up of Value-Added Telecommunications Services (关于开展增值电信业务扩大对外开放试点工作的通告). This policy removed foreign investment restrictions for certain VATS categories in designated pilot areas.
The Four Pilot Regions:
- Beijing Municipality (designated areas within Beijing)
- Shanghai Municipality (designated areas within Shanghai)
- Shenzhen Municipality (all of Shenzhen)
- Hainan Province (the entire province)
Wholly foreign-owned enterprises (WFOEs) registered in these pilot areas can now apply for the following VATS licenses with no foreign investment cap:
- B11 – Internet Data Center Services
- B12 – Content Delivery Network Services
- B14 – Internet Service Provider Services
- B21 – Online Data Processing and Transaction Processing
- B22 – Domestic Multi-Party Communication Services
- B23 – Store-and-Forward Services
- B24 – Call Center Services
- B25 – Information Services
As a foreign company, if you do not have a WFOE already established in China, you can obtain the VATS license for your solution by publishing under a local Chinese partner, such as AppInChina, that already has the VATS license you need.
How Many WFOEs Have Obtained a VATS License?
On February 28 2025, MIIT announced that 13 foreign-invested businesses in the pilot areas had been granted VATS licenses, the first successful round of applications under the pilot program. Below is detailed information regarding the 13 WFOEs that have acquired VATS licenses under the new pilot zone liberalisation.
| Company Name | Parent Group/Structure | Location & License(s) |
| 北京阿帕科蓝科技集团有限公司 | Pinecone Wisdom (HK) Limited | Beijing, B25 (ICP) |
| 德电（中国）通信技术有限公司 | Deutsche Telekom AG | Beijing, B14 (ISP) |
| 电讯盈科科技（北京）有限公司 | PCCW Limited | Beijing, B22, B25 (ICP), B14 (ISP) |
| 海南邓白氏数据科技有限公司 | Dun & Bradstreet | Hainan, B21 (EDI), B25 (ICP) |
| 汇丰金融科技服务（上海）有限责任公司 | HSBC Holdings plc | Shanghai, B21 (EDI), B25 (ICP) |
| 空中客车（中国）企业管理服务有限公司 | Airbus SE | Beijing, B21 (EDI) |
| 上海同道猎聘科技有限公司 | Liepin / Wise Talent Information Technology Co., Ltd (red-chip structure) | Shanghai, B25 (ICP), B22 |
| 深圳市伊登软件有限公司 | Edensoft International Limited (red-chip structure) | Shenzhen, B25 (ICP) |
| 深圳市优克联新技术有限公司 | uCloudlink Group Inc. | Shenzhen, B25 (ICP), B14 (ISP) |
| 西门子数字科技（深圳）有限公司 | Siemens AG | Shenzhen, B21 (EDI), B25 (ICP) |
| 西门子数字医疗科技（上海）有限公司 | Siemens Healthineers AG | Shanghai, B25 (ICP) |
| 一诺（海南）离岸数据投资管理有限公司 | Acxiom | Hainan, B25 (ICP) |
| 中银金融科技有限公司 | 中银集团投资有限公司 (red-chip structure) | Shanghai, B21 (EDI), B25 (ICP) |
The above 13 companies that successfully obtained licenses represent major, well-established multinational corporations with significant resources. This suggests successful applicants need substantial operational scale and compliance infrastructure. While the pilot program represents the market opening, obtaining VATS licenses as a WFOE remains exceptionally difficult in practice. The approval threshold is extremely high.
How Can I Get a VATS License?
As a foreign company, there are two ways you can obtain a VATS license:
- Establish a WFOE in one of the four pilot regions in China listed above. This method requires a large investment to establish the WFOE and it does not guarantee success when applying for VATS licenses as the threshold remains high.
- Partner with a local entity that can publish your solution. For foreign companies with no China presence, this is the most practical option. A partner such as AppInChina, that already holds the VATS licenses that you require, or is able to obtain them, can publish your solution under their company.
In both options, the application process for all VATS licenses follows the same structure, with some VATS licenses requiring extra documentation or more complex entity requirements. Below is the standard VATS license application process.
Stage 1: Qualification Assessment & Documentation
Before initiating your application, verify that your enterprise meets all eligibility criteria for your target VATS license category. Organize required materials into four primary categories:
- Corporate qualifications (business license, articles of incorporation, shareholder information)
- Personnel documentation (technical staff credentials, social insurance records)
- Business materials (feasibility study, business development plan)
- Security and compliance plans (information security protocols, emergency response procedures)
Stage 2: Digital Application Submission
Applications are submitted through the Telecommunications Business Market Comprehensive Management Information System (电信业务市场综合管理信息系统):
- Create an account or log in to the system
- Complete all required application forms with accurate company information
- Upload supporting documents in PDF format
- Submit the application package for formal processing
Stage 3: Administrative Review
The Communications Administration conducts a two-phase review:
- Formal review: Verification of document completeness and format compliance
- Substantive review: In-depth assessment of qualifications, technical capabilities, and compliance plans
During this stage, authorities may request supplementary materials or clarifications. Applicants should respond promptly to any requests to avoid delays.
Stage 4: On-Site Verification (When Applicable)
Depending on the license type and regional requirements, authorities may conduct physical inspections, including:
- Office premises verification
- Technical personnel interviews and credential validation
- Review of operational websites and platforms
- Physical inspection of server infrastructure and technical facilities
Stage 5: Approval and Notification
Upon completion of the review process, the Communications Administration will:
- Issue an approval decision for compliant applications
- Provide the VATS license certificate with a unique license number
- Send notifications via SMS and email to designated contacts
If the application is rejected, authorities will specify non-compliance issues that must be addressed before resubmission.
Stage 6: License Collection and Display Requirements
Choose between on-site pickup at the issuing authority or mail delivery to your registered business address. VATS licenses are valid for 5 years from the date of issuance. Plan for renewal procedures at least 90 days before expiration.
All license holders must prominently display their license number in the footer of their website or platform. This is a mandatory regulatory requirement for maintaining operational compliance.
The entire process generally takes 40-60 business days (approximately 3 months or less) from submission to approval. Complex applications or additional documentation requests may extend this timeline.
What are the Consequences for Operating Without VATS Licenses?
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 these penalities clearly:
- Criminal liability for serious violations (e.g., security breaches, corruption, market disruption).
- Administrative sanctions such as warnings, correction orders, and confiscation of illegal income.
- Fines ranging from CNY 5,000 to CNY 1 million, or calculated as multiples of illegal income.
- Business restrictions including suspension of operations or revocation of telecom permits in severe cases.
- User-focused remedies such as mandatory apologies and compensation for losses.
- Specialised oversight by product quality authorities for telecom equipment quality violations.
How Can AppInChina Help?
Navigating China’s VATS license requirements demands specialised expertise and a local entity. We can help with:
- Compliance Assessment. We provide a free assessment of your solution to determine which VATS licenses you require, and confirm what options are available to you.
- Publishing. If AppInChina already holds the VATS licenses that you require, or is able to obtain them, we can publish your solution under our company. If you require a highly restricted license, we can identify suitable partners for you to work with.
- License Application. If the VATS licenses that you require can be held by a wholly foreign-owned enterprise (WFOE) then we can advise you on this process.
Contact us to book your free initial call and begin your entry into the Chinese market.