IDC License (Internet Data Center License) – B11 Internet data center services
Chinese Name: IDC 互联网数据中心许可证 – B11互联网数据中心业务
Summary
The B11 License is a license under the VATS (Value-Added Telecommunications Services) licensing scheme required for any company that provides large-scale, high-quality, safe and reliable professional server hosting, space leasing, network bandwidth wholesale, ASP, EC and other services for Internet Content Providers (ICP), enterprises, media and various websites.
Laws
The B11 license is defined in Announcement of the Ministry of Industry and Information Technology on Promulgating the Classification Catalogue of Telecommunication Services (2015) as follows:
“Internet data center (“IDC”) 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.
Operators of IDC services shall provide machine rooms and corresponding supporting facilities, and put in place safety control measures.
IDC services also include Internet resource collaboration services. Internet resource collaboration services refer to the 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.”
Who needs one?
The B11 License (IDC License) is required for any company that provides placement, agency maintenance, system configuration and management services 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.
Requirements to apply for a B11 License
(1) A 100% Chinese-owned company can obtain a B11 License for any of the above-listed business scopes and a foreign-funded telecommunications enterprise established in China with no more than 50% foreign investment is also eligible for a B11 License.
(2) The business operator is a company established pursuant to the law;
(3) It has the requisite funding and staff for its business activities;
(4) It has the reputation or capability to provide long-term services for the users;
(5) The minimum registered capital of an operator operating within a province, an autonomous region or centrally-administered municipality shall be RMB 1 million; the minimum registered capital of an operator operating nationwide or across provinces, autonomous regions or centrally-administered municipalities shall be RMB 10 million;
(6) It has the premises, facilities and technical plans;
(7) The company and its key investors and key management personnel are not included in the list of dishonest telecommunications business operators; and
(8) Any other criteria stipulated by the State.
Special requirements for foreign-funded enterprises
According to the Special Administrative Measures (Negative List) for Foreign Investment Access (Edition 2020), since June 2020, it’s still not possible for a WFOE (wholly foreign-owned enterprise) to obtain a B11 License. To apply for and obtain an IDC License, a company’s foreign investment ratio cannot exceed 50%.
Special requirements for foreign-funded enterprises
According to the Special Administrative Measures (Negative List) for Foreign Investment Access (Edition 2020), since June 2020, it’s still not possible for a WFOE (wholly foreign-owned enterprise) to obtain a B11 License. To apply for and obtain an IDC License, a company’s foreign investment ratio cannot exceed 50%.
Fines and Penalties
Operating these services without the B11 License may result in a fine of up to 3 to 5 times the amount earned until that point, as well as the shutting down and blacklisting of that entity. You cannot carry out your business while applying for an IDC License, otherwise both your company and the approval agency will be punished. (See article 69 of Telecommunications Regulations of the People’s Republic of China)
Validity Time
Depending on the type of operation, IDC Licenses are valid for two, five, or ten years.
Get your B11 license the easy way.
Software and network operators in China must adhere to a set of laws and regulations that can seem opaque and confusing to foreign developers and companies. AppInChina simplifies and demystifies this process for our clients.
AppInChina will analyze your business, determine which licenses are needed, and operate the IDC business under our entity, which already holds the IDC License. Contact us today for a consultation.