IP-VPN License – B13 Domestic Internet Protocol Virtual Private Network Services (IP – VPN License)

Chinese Name: IP-VPN 许可证 – B13国内互联网虚拟专用网业务

Summary

The B13 License is a VATS (Value-Added Telecommunications Services) license that allows a company to provide services such as building a private network, remote access, intelligent encrypted file storage, online behavior management, firewall, network acceleration, traffic management, and load balancing.

Laws

The B13 license is defined in Announcement of the Ministry of Industry and Information Technology on Promulgating the Classification Catalogue of Telecommunication Services (2015) as follows:

“Domestic Internet protocol virtual private network services (“IP-VPN”) refer to the customized Internet closed user group network services provided for domestic users by the operators utilizing their own or leased Internet network resources and adopting the TCP/IP agreement. An Internet protocol virtual private network mainly adopts IP tunnels and other TCP/IP-based technologies, and provides a certain degree of security and confidentiality. In an Internet protocol virtual private network, encrypted transparent packet transmission can be realized.”

Who needs one?

Businesses that provide services such as building a private network, remote access, intelligent encrypted file storage, online behavior management, firewall, network acceleration, traffic management, and load balancing must have a B13 license.

Requirements to apply for a B13 License

To apply for a B13 license, your company must fulfill these requirements:

• A 100% Chinese-owned company can obtain a B13 License for any of the above-listed business scopes; or a foreign-funded telecommunications enterprise established in China, operating within a province, autonomous region, or centrally located municipality. (Note: The foreign capital cannot exceed 50%)
• The business operator is a company established pursuant to the law;
• Have the requisite funding and staff for its business activities;
• Have the reputation or capability to provide long-term services for the users;
• 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;
• Have the premises, facilities and technical plans;
• The company and its key investors and key management personnel cannot be included in the list of dishonest telecommunications business operators; and
• any other criteria stipulated by the State.

How do I apply for a B13 License?

File online with the local MIIT authorities. In the Shanghai Free Trade Zone, file with the Shanghai Communications Administration (SCA). All document and filing requirements vary by region. See Administrative Measures on Telecommunications Business Permits for a list of basic filing materials required.

Receiving the license generally takes three months or less.

Fines and Penalties

Operating these services without the B13 License may result in a fine of up to 3 to 5 times amount earned until that point, as well as the shutting down and blacklisting of that entity. If there is no illegal income or it is less than CNY 50,000, a fine of not less than CNY 100,000 but not more than CNY 1 million will be imposed. You cannot carry out your business while applying, or both you and the approval agency will be punished. (article 69 of Telecommunications Regulations of the People’s Republic of China)

Validity Time

The B13 License (IP-VPN License) must be renewed every 5 years.

Get your B13 license the easy way.

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 scenario, determine which licenses are needed, and apply on your behalf. See this page for other licenses that may be required for features in specialized categories, such as video conferencing and education. Contact us today for a consultation.