What is China’s B11 (IDC) License and Who Needs One?
If you are operating or plan to operate a Internet Data Center (IDC) that provides server hosting, cloud infrastructure, or data center services in China, you are required to hold a B11 License, also known as the IDC License or 增值电信业务经营许可证-互联网数据中心业务 in Chinese. This guide outlines the key aspects of the B11 License including the legal foundation, who needs it, how to get it, and how to ensure your business remains compliant with local laws and regulations.
What is the B11 (IDC) License?
The B11 License, formally known as the “Internet Data Center Business License” (互联网数据中心业务许可证) is a commercial operating license required for businesses that operate facilities providing large-scale professional server hosting, space leasing, network bandwidth wholesale, and related infrastructure services in Mainland China. The B11 License is specifically designed for companies that provide data center infrastructure and services to Internet Content Providers (ICP), enterprises, media, and various websites.
The B11 designation refers to the specific category within the Ministry of Industry and Information Technology’s (MIIT) telecommunications business classification system, where “B11” represents “Internet Data Center Business” (互联网数据中心业务).
This license serves as the government’s primary mechanism for regulating data center operations, ensuring that businesses providing IDC services in China’s digital infrastructure market comply with local laws and maintain robust security standards.
What is the Legal Foundation of the B11 License?
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) applies to the B11 License.
Article 7 of the Telecommunications Regulations establishes that all telecommunications businesses 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 telecommunications.
“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.”
Who Needs a B11 (IDC) License?
The B11 License is required when providing Internet Data Center services that involve hosting, managing, or operating infrastructure for third-party users. According to MIIT’s Classification Catalogue of Telecommunication Services (2015), Internet Data Center services refer to:
“the placement, agency maintenance, system configuration and management services provided for users’ servers or other Internet/network-related equipment in a form of outsource lease by utilizing the corresponding machine room facilities, as well as the lease of database systems, servers and other equipment, lease of the storage spaces of such equipment, lease of communication lines and export bandwidth on an agency basis, and other application services.”
MIIT states that IDC services also include Internet Resource Collaboration services such as:
“data storage, Internet application development environment, Internet application deployment, operation and management services provided for users through the Internet or other network-related means featuring availability at any time, use as needed, expansion at any time and collaborative sharing, and by virtue of the equipment and resources established on the data center.”
This therefore means that you will need a B11 License if your business revolves around any of the following:
Basic IDC Business Services:
- Server hosting (主机托管) – Providing space and bandwidth for customers to place their own servers and network equipment in your data center facilities
- Virtual hosting (虚拟主机) – Dividing server resources into virtual hosting spaces for customers to host websites and applications
- Server rental (主机租赁) – Leasing server equipment to customers with hardware maintenance services
- Machine room rental (机房出租) – Providing enclosed or semi-enclosed space for customers’ equipment with independent management
- Bandwidth rental (带宽出租) – Providing shared or dedicated network bandwidth and port access to customers
- IT outsourcing services – Comprehensive management of customers’ IT infrastructure
Value-Added IDC Services:
- Network security services – Security monitoring, protection, and incident response for hosted infrastructure
- Content Delivery Network (CDN) – Distributing content across network edges for accelerated access
- Data storage services – Providing storage space and backup solutions
- Internet resource collaboration services – Cloud-based data storage, application development environments, application deployment, and operation management services featuring on-demand access and collaborative sharing
- Network optimization services – Improving network performance and reliability for hosted services
- Maintenance and management services (代维代管) – Ongoing maintenance and operational support for customer equipment
It is important to note, any business that provides data center facilities, hosts servers or network equipment for third parties, leases bandwidth or communication lines, or provides Internet resource collaboration services will require a B11 License. Simply renting physical space and basic utilities (such as power, cooling, fire safety, and security) falls under real estate rental and does not require an IDC license. However, renting IT facilities (servers, storage, databases, racks) or providing bandwidth falls under IDC operations and requires the B11 License.
What’s the Difference Between the ISP License and the B11 License?
The B11 License and ISP License (B14) are often confused as they both relate to internet infrastructure. The ISP License (Internet Service Provider License, also known as the B14 license) is required for businesses that provide internet access services directly to end users. It applies to companies offering broadband connectivity, dial-up access, or other internet connection services to consumers or businesses. It does not cover data center infrastructure operations.
The B11 License is required specifically for businesses that operate data center facilities and provide infrastructure services such as server hosting, co-location, cloud computing resources, and bandwidth wholesale. Requirements are more stringent due to the critical nature of data center operations and security concerns.
In practice, a telecommunications company providing internet access to homes and offices needs an ISP License. If that company also operates data centers that host servers for business clients, it must obtain both an ISP License and a B11 License.
What are the Basic Requirements to Apply for the B11 License?
Obtaining a B11 License requires meeting specific ownership, operational, and infrastructure requirements set by MIIT.
Ownership Structure
Foreign ownership limits vary by region:
Pilot Regions: According to the Ministry of Industry and Information Technology’s Notice on Launching Pilot Work for Expanding Opening Up of Value-Added Telecommunications Services (工业和信息化部关于开展增值电信业务扩大对外开放试点工作的通告), as of April 8, 2024 Beijing, Shanghai, Hainan, and Shenzhen have eliminated foreign capital restrictions for IDC business. In these four pilot regions, WFOEs (Wholly Foreign-Owned Enterprises) can apply for VATS Licenses, including the B11 License.
It is important to note, while legally permissible, obtaining a VATS license as a WFOE in pilot regions remains exceptionally difficult in practice. Approval thresholds are extremely high, with authorities primarily approving well-known multinational enterprises. As of 2025, only 13 companies total have successfully obtained VATS licenses as WFOEs across all categories since the pilot program began.
Other Regions: According to the Administrative Measures for Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定), foreign-invested enterprises are restricted to 50% foreign capital maximum. Foreign companies must establish a joint venture (JV) structure with a Chinese partner holding at least 50% equity or collaborate with a Chinese partner such as AppInChina.
Domestic companies face no ownership restrictions and can operate with 100% Chinese ownership nationwide.
Company Requirements
Your company must be legally established under Chinese law with “Value-Added Telecommunications Business” (增值电信服务) and specifically “Internet Data Center Business” (互联网数据中心业务) explicitly listed in your business scope.
You need minimum registered capital of RMB 1 million for provincial operations or RMB 10 million for cross-provincial operations.
The company and its key personnel must have clean records with no telecommunications violations in the past three years and cannot be included in the list of dishonest telecommunications business operators.
Technical Infrastructure
Physical data center facilities must be located in China with proper machine rooms meeting national standards. The data center must meet minimum requirements including:
- Machine room area of at least 300 square meters
- Floor load capacity of at least 600 kg per square meter
- Separation from public areas with appropriate isolation
- Dual power supply from different substations (main and backup)
- UPS uninterruptible power supply for at least 30 minutes
- Generator backup power capable of sustaining operations until mains power is restored
- Automatic fire suppression system meeting telecommunications facility standards
- Temperature and humidity control systems
- Lightning protection, waterproofing, and access control systems
Server infrastructure must demonstrate adequate capacity, redundancy, and reliability for the proposed services.
Technical plans must demonstrate data center security, operational procedures, disaster recovery capabilities, and service level agreements.
A cybersecurity department with supporting internal regulations is mandatory, including network security monitoring, incident response procedures, and data protection measures.
Companies must ensure compliance with data localization and cross-border data transfer regulations, along with robust physical and logical security controls.
Personnel Requirements
You need at least 3 Chinese employees with social security (社保) records covering 1-3 months from your company for the application materials.
For IDC operations, you must have at least 10 technical personnel including:
- At least 5 maintenance personnel
- At least 2 dedicated information security personnel
- Technical staff with relevant qualifications in data center operations, network engineering, and cybersecurity
Some regions mandate at least one IT-related professional with recognized certifications or degrees in computer science, network engineering, or related fields.
Foreign Enterprise Requirements
Foreign-invested enterprises face additional requirements:
For pilot regions (Beijing, Shanghai, Hainan, Shenzhen): Foreign enterprises including WFOEs can apply for the B11 License, with the great level of difficulty detailed above, and must submit applications to the Ministry of Industry and Information Technology (MIIT) rather than provincial authorities.
For all foreign-invested enterprises, regardless of region:
Your legal representative must be a Chinese national or permanent resident.
You must demonstrate data center operational experience through facility descriptions, infrastructure diagrams, service contracts, and operational procedures documentation.
Additional documentation required for foreign enterprises:
- Foreign Investment Security Review Decision (《外商投资安全审查决定书》)
- Foreign shareholder overseas registration certificates with notarization and authentication
- Articles of association showing foreign investment structure
- Proof of foreign investor’s financial stability and business qualifications
Physical facility requirements including proof of property ownership or long-term lease agreements for data center spaces, environmental and fire safety certifications, and power supply agreements.
It is worth noting, companies providing cloud services may need cooperation agreements with network operators. Industry-specific licenses may also apply to businesses serving regulated sectors such as financial services or healthcare.
Technical Evaluation Requirements
Before applying for a B11 License, companies must build their data center facilities and corresponding business management systems, and pass technical evaluation conducted by MIIT-designated evaluation agencies. This is a mandatory prerequisite for entering the license application stage.
Required Systems for Evaluation
Companies applying for B11 licenses must pass evaluation for the following systems:
- ICP/IP Address/Domain Name Filing System (ICP/IP/域名备案系统) – Required for all IDC operators to manage website filings and IP address allocation
- Access Resource Management Platform (接入资源管理平台) – Required for managing customer access resources and connections
- Information Security Management System (信息安全管理系统) – Required for monitoring and managing security across hosted services
- IDC Machine Room Operation Safety System (机房运行安全系统) – Required specifically for IDC operations to monitor facility safety and operations
All four systems must be fully operational and pass evaluation before the B11 License application can proceed. These evaluations are provided free of charge by designated evaluation agencies.
How to Apply for the B11 (IDC) License
The B11 License application process is administered through regional telecommunications authorities under MIIT oversight. The process is complex and typically takes 60-90 business days from initial submission to final approval, though it can extend to 6 months for complex applications. Depending on the scale of your operations, the authority managing your application will differ:
Provincial Operations: Approved by the Provincial Communications Administration Bureau (省通信管理局) where the company is registered.
Cross-Provincial Operations: Must apply to the Ministry of Industry and Information Technology (国家工业和信息化部).
Major filing authorities include:
- Shanghai Communications Administration (上海市通信管理局) for Shanghai
- Beijing Communications Administration (北京市通信管理局) for Beijing
- Guangdong Communications Administration (广东省通信管理局) for Guangdong
- Shenzhen Communications Administration (深圳市通信管理局) for Shenzhen
Step 1: Material Preparation
Confirm enterprise qualifications meet requirements and prepare all application materials organized by category: main qualifications, personnel materials, facility documentation, technical plans, and security measures.
Step 2: Online Submission
Access the Telecommunications Business Market Comprehensive Management Information System (电信业务市场综合管理信息系统). Complete and submit application forms, uploading all materials in PDF format.
Step 3: Material Review
MIIT’s local Communications Administration conducts initial formal review followed by substantive review. Some regions may request supplementary materials. Total typical review period is 60-90 business days.
Step 4: On-Site Inspection
Authorities will conduct inspection of data center facilities, verification of technical personnel, review of operational procedures and safety systems, and physical inspection of server infrastructure and environmental controls.
Step 5: Approval Decision
Upon approval, the B11 License is issued with results notified via SMS and email. Rejections include specific reasons for non-compliance that must be addressed before resubmission.
Step 6: Certificate Collection
Choose on-site pickup or mail delivery. The certificate is valid for 5 years and requires renewal before expiration. Finally, to remain compliant with local laws and regulations, companies are required to display the B11 License number provided on the certificate on their website.
The entire process generally takes 60-90 business days (approximately 3-6 months) from submission to approval. Complex applications involving large-scale facilities or additional documentation requests may extend this timeline.
Important: Before applying for the B11 License, you must complete construction of your data center facility and all required business management systems, and pass technical evaluation by MIIT-designated evaluation agencies. The license application can only proceed after successfully passing these technical evaluations.
What Documents are Required for Application?
Company Documents – Business license (营业执照) with telecommunications scope (增值电信服务) and IDC business scope (互联网数据中心业务), company articles, legal representative ID (法人代表身份证) with photo, and shareholder identification.
Personnel Documents – Social security certificates for at least three employees, technical staff educational certificates and certifications where required, and employment contracts.
Business Materials – License application form, business development plan, technical solution demonstrating data center capabilities, data security assurance plan, and disaster recovery procedures.
Facility Documents – Property ownership certificates or lease agreements for data center premises, proof of machine room area (minimum 300 square meters), floor load capacity certification (minimum 600 kg/m²), environmental and fire safety certifications including automatic fire suppression system documentation, dual power supply agreements from different substations, UPS system specifications (minimum 30 minutes backup), generator backup power documentation, and facility layout plans with equipment specifications.
Infrastructure Documents – Server and network equipment lists with specifications, cooling and environmental control system documentation, physical security system descriptions, and network topology diagrams.
Compliance Documents – Cybersecurity department establishment records, data protection regulations and procedures, incident response plans, and operational security policies.
All copies must be stamped with your company seal. Foreign language documents require certified Chinese translations. Requirements will vary by province. 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 application being successful.
What Are the Consequences of Operating Without a B11 License?
Operating telecommunications or internet-based data center services in China without a valid B11 License directly violates Chapter 6 of the Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例) and carries significant legal and operational risks:
- Criminal liability for serious offenses such as data misuse, illegal network operations, or market disruption.
- Administrative penalties including warnings, rectification orders, and confiscation of illegal gains.
- Fines ranging from CNY 5,000 to CNY 1 million, or calculated as 3 to 5 times the amount of illegal income.
- Business restrictions including suspension of operations, forced shutdown of data center facilities, or revocation of telecom permits in severe cases.
- Blacklisting of the entity and key personnel, preventing future telecommunications business operations.
- User-focused remedies such as mandatory service migration support, apologies, and compensation for service disruptions or losses.
- Additional liability for companies and approval agencies if services are carried out during the application process before license approval.
It is critical to note that you cannot operate data center services while your B11 License application is pending. Both your company and the approval agency will face penalties if unlicensed operations are discovered during the application period.
How Can AppInChina Help?
China’s B11 License requirements can be complex and time-consuming. At AppInChina, we provide comprehensive B11 License services to help international businesses succeed in China. We can help by:
- Providing a free compliance assessment to identify what is required for you to stay compliant in China
- Publishing your solution under our Chinese entity to ensure you meet entity requirements, obtaining the B11 License on your behalf.
- Preparing application documents and guiding you through the submission process.
- Translating any documents that aren’t already in Chinese.
- Liaising with provincial authorities throughout the approval process.
- Managing annual audits and ensuring ongoing compliance.
Contact us to get started with deploying your data center and cloud infrastructure solutions in China.