Retailing, Franchising, and Consumerism Business Intelligence in China

Online Shops Will Need To Be Licensed From August

According to the e-commerce supervision and management regulation promulgated on its website by the Beijing Administration for Industry and Commerce, from August 1, 2008 profit-making online shops must get a business license before starting operation.

However, the regulation also says that nonprofit online shops that are intended to sell or exchange items for personal use do not need to register.

For the convenience of customers, e-business managers should publicize information such as their company names, business addresses, online shop names, IP addresses and how to contact them.

In addition, e-commerce service suppliers that offer online trading platforms are responsible for checking the business license of their contracted shops and setting up records for completed deals. These records should be kept for at least two years. If these service suppliers are found offering services to unlicensed operators, they will also be punished.

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