What is China’s Network Culture Business License and Who Needs One?

The Network Culture Business License (网络文化经营许可证), commonly referred to as the 文网文 and sometimes referred to as the Internet Culture Business License, is a vital permit for businesses engaging in commercial internet cultural activities in China. Issued by the Ministry of Culture and Tourism, this license is required for companies operating online games, music streaming, live performances, or digital content services like cartoons and animations. For foreign businesses aiming to succeed in China’s dynamic digital market, securing this license is essential to ensure compliance and unlock growth opportunities. At AppInChina, we provide expert guidance to navigate this complex process, helping you establish a strong foothold in China.

What is the Network Culture Business License?

The Network Culture Business License authorises businesses to engage in revenue-generating internet cultural activities, as outlined in the Interim Provisions on the Administration of Internet Culture (2017 Revision). This includes online games, streaming music or video content, hosting live performances on platforms like Douyin (抖音), or distributing digital art and animations. Valid for three years, the license requires renewal 60 days before expiry. However, any business monetising cultural content through user fees, e-commerce, or advertising must obtain this permit to operate legally.

Why Do You Need This License?

The Network Culture Business License ensures your business adheres to these regulations, enabling legal monetisation of cultural content. The license number must be displayed on the website, displaying the license number on your website enhances credibility, fostering trust among Chinese consumers. As outlined in the Provisions on the Administration of Internet Culture. Operating without a Network Culture Business License risks significant penalties, including fines ranging from 10,000 to 30,000 RMB, orders to cease operations, and potential confiscation of illegal income.

Who Needs the Network Culture Business License?

Any business generating revenue from internet cultural activities in China requires this license. This includes game developers; publishers operating mobile or online games; platforms streaming music or video content; creators distributing digital cartoons or art; and businesses hosting live performances. E-commerce platforms selling cultural products online also fall under this requirement. Companies producing non-monetised content only need to file with the Ministry of Culture and Tourism. However, most digital businesses aiming to thrive in China’s competitive market need the full license to operate legally and effectively.

How Can I Obtain This License?

Securing a Network Culture Business License involves a detailed process with strict requirements. The basic requirement is that businesses must have a legal entity in China that is majority Chinese-owned. The application is submitted to the provincial or municipal cultural administrative department and undergoes a 30-day initial review before being forwarded to the Ministry of Culture and Tourism for final approval, which typically takes an additional 20 days. For domestic companies, the process takes 1-2 months and costs between RMB 15,000 and 30,000, depending on regional variations and service providers.

The application requires the following documentation:

• A written application for the Network Culture Business License.
• Pre-approval notice of enterprise name, business license, and articles of association.
• Details on the source of funds, amount, and credit documents.
• Company profile, including business license (营业执照) and identity certificates of the legal representative, main management, and technical personnel.
• Proof of workplace usage rights and the company’s shareholding structure.
• A business development report and a feasibility report for Internet Content Provider (ICP) business, outlining long-term service capabilities, funding, technical support and operational guarantees.
• Information security measures, including website and user data protection systems.
• Provide content samples or descriptions of the cultural products/services.

For specific sectors such as news, publishing, or education, prior approval from relevant authorities is also required. Approved businesses must display the license number on their website and may need additional permits, such as a Value-Added Telecom Service (VATS) License, for commercial operations and the ICP Filing or ICP Commercial License. AppInChina streamlines this process, handling documentation and regulatory follow-ups to minimise delays.

Can I Obtain this License as a Foreign Company?

Foreign businesses face significant hurdles in China’s internet cultural sector. Wholly Foreign-owned Entities (WFOEs), for instance, cannot obtain the license for music, cartoons, or live streaming and can only obtain this license for games. This means any WFOEs wishing to obtain the license for anything other than games must establish a partnership with a local partner, such as AppInChina, or Variable Interest Entity (VIE) structures. Language barriers, regional regulatory differences, and complex documentation further complicate the process. AppInChina offers tailored solutions, including localization to align content with Chinese standards, and full legal compliance support for licensing and partnerships. 

How Can AppInChina Help?

AppInChina provides end-to-end services to secure your Network Culture Business License and thrive in China’s digital market. Our team manages the entire application process, from document preparation to submission and follow-up, ensuring compliance with the latest regulations. With over a decade of experience, AppInChina empowers businesses to navigate China’s regulatory landscape and achieve sustainable growth.

Ready to enter the Chinese market? Contact us today to secure your Network Culture Business License and grow your business in China.