First Time to Open E-Store in China, You Need Business License!- 大数跨境

First Time to Open E-Store in China, You Need Business License!

HACOS瀚客企服

2023-10-12

导读：The new E-Commerce Law has stipulated that as long as you sell things online, you should apply for a

In China, people of all ages and both sexes like shopping online, and many foreigners have come to China to open e-stores. In 2015, Jessica Rudd, the daughter of former Australian prime minister, opened her first e-store on Tmall Global, focusing on Australian maternal and child products. Jessica hopes to connect more Australian companies and Chinese consumers through the cross-border e-commerce platform.

"Double 11" in 2015, China's e-commerce sales totaled more than 120 billion yuan, and Jessica's e-store sold 8,000 papaw ointments in that day. It can be seen that the online store has brought huge dividends.

We all know that business license is necessary for a brick-and-mortar store. But, is it also a must for e-stores?

The new E-Commerce Law of China has stipulated that as long as you sell things online, whether in e-stores, Taobao, WeChat moments, live broadcast sales, etc., you should apply for a business license and pay taxes.

Documents required for applying for a business license are as follows

Identity certificate of the applicant

Property right or lease contract of business premises

Application for Registration of Individual Business

Certificate of use of online business premises (With this certificate, you can use your residence place as the business license registration address without renting an additional office.)

If you have an existing business license and just want to open an e-store, you do not need to apply for a new business license.

However, the E-Commerce Law also stipulates several situations in which business licenses are not required.

1️⃣ Individuals sell agricultural and sideline products.

2️⃣ Individuals sell household handicraft products produced by themselves.

3️⃣ Individuals use their own skills to engage in public convenience services for which no licence is required by the law, such as cleaning, washing, sewing, hair cutting, moving, making keys, pipeline dredging, home appliance and furniture repair, etc.

4️⃣ Individuals engage in occasional and low-value transactions (with an annual transaction amount not exceeding 100000 yuan).

5️⃣ Other circumstances where no registration is required by laws or administrative regulations.

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