Here are the main principles used to determine whether an activity in China is subject to a licence, a prior approval, or a specific registration.
These are general rules applicable to both foreign and Chinese companies.
1. Check the “Negative List”
This is the first and most important step.
China publishes a Negative List for foreign investment, which classifies activities into three categories:
- Prohibited for foreign investors
→ No licence possible (e.g., certain media, defense-related activities). - Restricted / Subject to special approval
→ Require governmental pre-approval (ministries, development commissions, etc.). - Open (not listed)
→ Free access, but may still require a sector-specific licence.
If the activity appears on the Negative List, the procedure is automatically more complex.
2. Check sector-specific regulations
Each sector in China has its own supervisory authority and its own licensing rules.
Examples:
| Sector | Authority | Licence type |
| Finance | CBIRC / PBOC | Financial licence |
| E-commerce / Internet | MIIT | ICP Licence, ICP Filing |
| Education | MOE | Education licence |
| Food / Health | SAMR, NMPA | Health & product licences |
| Logistics | MOT | Transport licence |
| Import/export | MOFCOM, Customs | Import-export registration |
Any “regulated” activity requires prior licensing.
3. Identify whether the activity is considered “sensitive”
Some activities require authorisations even if they are not on the Negative List:
- collection of personal data
- cybersecurity or data hosting in China
- cryptography
- media, publishing, video production
- telecommunications
- medical or pharmaceutical services
- education services
- energy or natural resources
As soon as the activity involves data, health, media, or telecom, a licence is almost always required.
4. Check the Business Scope
In China, companies operate under a declared Business Scope, which defines legally permitted activities.
If the planned activity does not fall within the current scope, the company must:
- amend the Business Scope, and
- obtain any required licences for the new activity.
Every operated activity must strictly match the registered Business Scope.
5. Check if the activity involves regulated products
Some products are automatically subject to licensing or certification:
- medical devices
- cosmetics
- dietary supplements
- electrical equipment
- toys
- imported food
- hazardous products
They often require:
- CCC (China Compulsory Certification),
- registration,
- third-party safety testing.
If your product falls into one of these categories → licence required.
6. Check if the activity involves cross-border transactions
In some cases, an activity may be considered “operated in China” even if performed from abroad, especially when:
- e-commerce targeting Chinese consumers
- an app or platform accessible in China
- software requiring a server inside China
- advertising in Chinese aimed at Chinese users
In such cases, you may need:
- ICP Filing / ICP Licence
- Cybersecurity assessment
- MIIT registration
Even without a local entity.
7. Check local (city/province) rules
Some areas — such as Free Trade Zones, Shanghai, Shenzhen — may have:
- more flexible rules,
- faster licensing procedures,
- activities permitted locally but restricted elsewhere.
Location significantly influences licensing requirements.
For any information, please contact our team to info@opkofinance.com.
