ICP License
An ICP license may be needed, depending on how consumers transact with you.
The market
China’s E-commerce Market Landscape
Due to the customers’ preferences, Chinese e-commerce platforms are still the key players in the online shopping field. Consequently, using local platforms remains the most effective way to reach Chinese online shoppers for marketing and branding.
Together with Hongda, you can see how to get your online shopping platform account registered with complete e-commerce solutions to expand your market in China.
Opening an online shop in China may require the presence of a Chinese company as the operating entity.
ICP licence
Is an ICP License Required for E-commerce Activities?
The full name of an ICP License is an “Internet Content Provider” License, which is issued by the Ministry of Industry and Information Technology. An ICP License can be further categorized into two types: ICP filing (for non-commercial purposes such as personal websites or blog posts) and ICP Business License (for commercial purposes such as online selling).
Whether an ICP License is required depends on the channels where you will be selling your products.
Platforms
E-commerce Platform Selling
Three platforms are commonly considered for foreign sellers:
- Tmall: the largest B2C platform in China, a great choice for brands looking to open their official shops, especially luxury or high-value products. Running a Tmall shop can be more expensive than other platforms
- JD: the largest self-operated e-commerce enterprise in China, with a strong focus on electronic devices and the most advanced fulfillment infrastructure among Chinese e-commerce companies
- Xiaohongshu (Little Red Book): a community platform where users share product reviews and text introductions, combined with video and live broadcast functions
Platform deposits, technical service fees and sales commissions differ by platform and by product category. Confirm the current figures with each platform before you decide.
How it works
Steps to start an e-commerce operation in China for foreigners.
Quick answer: the route runs in seven steps, from company registration to sending profits back. Select a step for detail.
Stage 1 of 7
Company and bank account
If your chosen e-commerce platform requires a company to register for a shop, the first step is to register a company.
- Form a WFOE in mainland China, or set up a Hong Kong company if you plan to engage primarily in cross-border trade.
- A bank account is also necessary for receiving and making payments.
Stage 2 of 7
Import and export license
The import and export license is a licensing process in which a company undergoes qualification review and registration with government departments to legally conduct import and export of goods or technology.
- Compulsory if you want to import overseas goods in China and sell them to Chinese customers.
- Compulsory if you want to sell Chinese local products to foreign countries or regions.
Stage 3 of 7
Intellectual property protection
Protecting your trademarks and intellectual properties is important, especially for big brand owners.
- Registering a trademark in China gives legal protection to indicate the source or ownership of your brand.
Stage 4 of 7
Online store establishment
Hongda can help you list and present your products on e-commerce sites like Temu, JD, Tmall, and Taobao.
- Recommend suitable website building platforms (such as WordPress and Shopify) based on your needs.
- Services like website development and UI/UX design.
Stage 5 of 7
Payment processing
Hongda can assist you in selecting the appropriate online payment platform and integrating it into your store or website.
- Online payment methods such as PayPal, Alipay, Stripe, or Airwallex.
- Or use your company’s bank account for traditional bank transfers.
Stage 6 of 7
Online marketing and promotion
Hongda can provide marketing strategies across multiple platforms depending on your target client group.
- Paid advertising campaigns.
- Search engine optimization (SEO).
- Social media marketing (e.g., Facebook, Instagram, TikTok).
Stage 7 of 7
Send your profits back
Due to the foreign currency control in China, sending money overseas can be difficult without carefully planning.
- Read our blog on how to repatriate the profits earned in China to overseas, or book a meeting.
Hongda can help with a comprehensive e-commerce launch service package.
Your own store
Opening Your Own Online Store or WeChat Mini-Program
You can open your own online store or WeChat mini-program, but there are many legal requirements that must be met before opening your own e-commerce.
Daigou and taxes
Daigou means buying goods outside China and bringing them into China to resell. Goods brought in for resale must go through the applicable import, customs and tax procedures.
Intellectual property protections
Intellectual property protections must be in place.
Choosing a platform
Choosing the Right Platform
Which platform is best?
There is no “best” platform in China because they all have their expertise in different areas or product categories. Alibaba’s Tmall is the top e-commerce retailer in the country.
Why the market is booming
The main reasons include a high Internet usage rate, a high mobile penetration rate, a highly developed digital ecosystem, efficient logistics systems, a wide variety of products, and willingness to spend money.
Why Hongda
Why Choose Hongda for E-commerce Setup?
Coordinate the entity, licences, store and payments with one China-based service team.
Since 2007
Serving foreign companies in China since 2007, with client relationships that go back to 2008.
One team, end to end
Company setup, banking, tax, payroll and work permits coordinated by one team.
In English, on the ground
English-language project management with a China-based team in seven locations.
Clear scope and limits
We confirm the scope before work begins and say which decisions rest with authorities or banks.
Trusted by companies including
Client voices
Clients who have stayed with us for years.
Travis Perkins
David Finch BA ACMA CMIIA CAMA
Director of Group Business Risk & Assurance, Travis Perkins PLC
With Hongda since 2008
Travis Perkins PLC (a leading builders merchant in the UK) has been using Hongda Business Services since 2008 for accounting and professional services. Throughout this time, we have found the team at Hongda to be very helpful and professional in their dealings with us. We look forward to working with the company in the future.
Sound United
Jack Peng
Vice President, Asia Pacific, Sound United
With Hongda since 2013
Sound United (a leading designer and manufacturer of consumer audio products in the US) has been using Hongda Business Services since 2013. Moving one’s operations to China is not a small task, but Hongda’s expert services helped us set up a company and deal with tax issues so we could get on with growing our business in no time at all, and that’s why we continue to use them today.
Tulip Pacific Ltd.
Erik de Waard
Director, Tulip Pacific Ltd.
With Hongda since 2012
Tulip Pacific Ltd. (Business planning and interim financial management services) has been using Hongda Business Services since 2012. Hongda has helped us set up legal entities in China/HK and takes care of our annual company audits. They are the most efficient business service provider I have worked with to-date, and their professional advice has helped me better advise my own clients and provide greater value to my overall business.
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Your team
The people you will work with.
Meet the three chief consultants at Hongda, including founder Angel Ho and co-founder Bobby Lee.
Angel Ho
Chief Consultant, CEO
Founder of Hongda in 2007. Holds Chinese Tax Agent, IPA (Australia) and IFA (UK) certificates. Provides one-stop services covering market access, company establishment, financial settlement, financial and tax consultation, and human resources management.
Bobby Lee
Chief Consultant
Co-founder of Hongda. Many years of corporate legal consultancy and involvement in managing client enterprises. Familiar with tax, personnel and project management work across Guangdong, Hong Kong and Macau. Excellent English communication skills.
Strong Song
Chief Consultant
24 years in enterprise management, business development, and financial and tax compliance. Has provided financial and tax advisory services for hundreds of companies. In-depth learning and practical experience in IFRS (International Financial Reporting Standards), Generally Accepted Auditing Standards and International Taxation.
Why is China’s e-commerce retail market booming?
The main reasons are an impressive Internet usage rate, a high mobile penetration rate, a highly developed and integrated digital ecosystem (including the blend with social media), efficient logistics systems, a wide variety of products, and willingness to spend money.
Which e-commerce platform is the best in China?
There is no so-called “best” platform in China because they all have their expertise in different areas or product categories. Out of the most popular Chinese e-commerce platforms, Alibaba’s Tmall is the top e-commerce retailer in the country.
Can I open my own online stores or WeChat mini-programs for e-commerce?
Yes, you can. But there are many legal requirements that must be met before opening your own e-commerce, including the right ICP filing or licence, import, customs and tax rules for goods bought abroad, and intellectual property protections.
Is an ICP license required to sell on Taobao, JD, Tmall or Temu?
No. The platforms already hold an ICP license, so you do not need to apply for an individual ICP License of your own.
Contact our team
Still Have a Question? Get in Touch Today!
Share your plans, structure and timing. We confirm the scope with you before any work starts.