Running a website or platform: licenses, filings and servers
If you build a website or platform that takes payments, which licenses do you need and where should the server be?
Tips from this section that apply in the United States. This section describes legal rules, mostly mainland China’s. It is general information, not legal advice; for your own case, talk to a lawyer.
When something goes wrong with what users post, the platform is responsible. You have to build the system: registration, post review, comment review, daily patrols, and how to handle incidents. Put a reporting entry in a prominent place on the page. When you see illegal content, stop it from spreading immediately, keep the records, and report it to the competent authority. If you don't, the fine is 50,000 (5万) to 500,000 (50万) CNY, and more in serious cases.
The three tiers differ not in price but in what you have in hand on the day something goes wrong. A large provider has a filing channel, public credentials, outage notices, compensation terms, and people you can reach. A small provider is half the price, but when it oversells, runs off or is cut off by its upstream, you don't even know whom to ask. A static site with no user data is fine on a VPS that costs a few dozen CNY.
Moderate value
Evidence C
Saves money
Mainland China only 9 tips
These tips describe mainland-China rules and do not apply in the United States; they are here for people living in China.
If the buyer's money goes into your account first and you then pass it on to the seller, you are running a payment business. That business needs approval from the People's Bank of China (中国人民银行) and real capital of 100,000,000 (1亿) CNY. If you do it without approval, you will be shut down, the money you made is confiscated, and you are fined, with the owner and the people in charge fined separately. In serious cases there is a prison sentence. There is only one safe way: the money never goes into your account.
A website that takes money from users mostly has to get a value-added telecom business license (增值电信业务经营许可证) first, and an individual cannot apply for this license. If you only sell goods on your own site or app and do not let others open shops there, you don't need one. Neither do you if you only run a WeChat or Alipay mini program or an online store. If you should have one and don't, and you take money and open the site anyway, your income is confiscated, you are fined, and in serious cases the site is closed.
To run live streaming or game commentary, you need an Internet Culture Operation License (网络文化经营许可证) issued by the provincial culture department. The business scope on the license must state online performance. A decision comes within 20 days of acceptance, and the license is valid for 3 years. You must keep the videos you have broadcast for a full 60 days. If you open without the license, you will be ordered to stop and warned, then fined up to 30,000 (3万) CNY, and if you don't stop you go on a blacklist.
If your server is inside China, you have to file before the site opens. Filing costs nothing; you submit it through your server provider, and it generally takes a few days to a few weeks. Without a filing, you are ordered to correct it within a set time and fined 10,000 (1万) CNY, and if you don't, the site is closed. If the homepage does not show the filing number, you are fined a further 5000 to 50,000 (5万) CNY.
If you let others sell on your platform, you must first check the seller's identity, address, contact details and licenses, then register and set up a file. After the file is set up, check again at least every six months. Who the sellers are is reported to the market regulator (市场监管), and tax information is reported to the tax authority every quarter. Product and transaction records are kept for three years. If you miss any one item, you are first ordered to correct it, and if you don't, you are fined 20,000 (2万) to 100,000 (10万) CNY.
If your website lets people post or chat, you must ask for their real identity information when they sign up for the service. If they don't provide it, they can't use it. The usual way is to store the real name on the back end, let the user choose which nickname shows on the page, and verify with a mobile phone number. If you don't require real-name registration, you are first ordered to correct it. If you don't, the fine is 50,000 (5万) to 500,000 (50万) CNY, and the site may also be shut down.
A person under 16 cannot register a streaming account with you. Those 16 and older must have their identity verified and need the consent of a parent or other guardian. Tipping has three tiers: under 8 cannot tip; ages 8 to 16 need the guardian's consent; those 16 and older need the guardian's consent or verification of proof of income. If a child tips money without the guardian knowing, and the guardian asks for it back, the court will order it returned.
When someone sends an infringement notice with preliminary evidence, you must promptly delete the item, block it or cut the link, and forward the notice to the seller. If you drag your feet, you are liable together with the seller for the extra losses that result. If the seller objects, forward the objection to the other side and wait 15 days. If the other side has neither filed a complaint nor sued, restore the item.
Sending the information of users in China to machines abroad counts as exporting it. Having your server abroad does not mean the data didn't leave. To export it you must take one of four paths: a security assessment by the cyberspace administration (网信部门), certification by a professional body, signing a standard contract, or another route provided by law. You must also tell users who abroad receives the information and what it will be used for, and ask them separately about this one matter.
