China’s internet user base continues to grow, with 1.1 billion users as of 2024 and projected to reach 1.2 billion by 2026, making it a critical market for businesses. Though one of the largest markets of online consumers globally, China remains largely untapped by many international businesses due to the challenges involved in obtaining an Internet Content Provider (ICP) license, issued by the Chinese Ministry of Industry and Information Technology (MIIT). The permit is necessary to host a website on a server in mainland China for both commercial and informational online services. The topic is vast but important, so here’s an overview of what it is and the impact it has on your online business.
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What's an ICP License?
An ICP license is a legal permit that enables any business, local or international, to host websites, apps, or other types of online services on servers in mainland China. Introduced in 2000 under the Telecommunications Regulations, it ensures compliance with China’s cybersecurity and content laws. There are two types of ICP registration:
ICP Filing (备案, “bei’an”): For non-commercial, informational websites (e.g., corporate websites, blogs, portfolios, content sharing, any other sites without monetization).
ICP Commercial License (许可证,”Xukezheng”): For revenue-generating activities (e-commerce, paid subscriptions, advertising, gaming, streaming, cloud and SaaS offerings, etc.)
The license is required for all eCommerce sites that want to be hosted within China.
Starting in March 2024, mobile apps and mini-programs require separate ICP filings.
The paper ICP License has gradually been replaced by the electronic version
Why do you need an ICP license?
As a legal requirement, it is mandatory to obtain an ICP if you host your online service on a server located within China, regardless whether your business is based in China or overseas. Without it, your site runs the risk of fines, slow loading, being blocked or permanently shut down by the authorities. For mobile apps, they could be removed from Chinese apps stores.
An ICP license enables you to have unfettered access to China’s online market. Without an ICP license, your website will be routinely checked by the country’s public network security to ensure it doesn’t violate national security. This constant scanning of your website content will slow down your site speed, and your site may eventually be blacklisted — even if you abide by all the censorship laws in China. The checks are a part of the Great Firewall of China, the Chinese nationwide network security framework meant to protect the country’s online ecosystem from foreign influences. An ICP enables your content to be displayed to the end-user expediently with low latency and zero lost packets.
Technically you could host your website outside of China without an ICP license, but there are limitations, most notably 10-20 seconds slower than local websites. Check out our article detailing the perils of hosting a website outside of China while trying to reach the Chinese market.
As China’s local search engine prioritizes ICP-licensed sites with .cn domains, it is critical to rank on Baidu to gain visibility in this search-dominated market.
An ICP license also enables your site’s integration with Alipay/WeChat Pay and compliance with data localization laws (e.g., Data Security Law 2021).
How does the ICP license work?
An ICP license tells the Chinese internet authorities that this website has been vetted via the process of applying for a license and its many requirements. The application process of the ICP license ensures that those who hold this license have passed a series of checks.
To fully understand why you need an ICP license, you need to understand the Great Firewall of China (GFoC): In 1978, China opened up to the world for business and quickly developed a fast-growing middle class who desired access to the internet. The Chinese government was concerned about their citizens being exposed to potentially harmful content online from the wider world, such as information on guns, political issues, and pornography. In response to this, the Ministry of Public Security established the Golden Shield Project in 1998 and evolved into what is known as the Great Firewall of China (GFoC).
Where you can find the ICP on a website
The GFoC sought to moderate and control internet traffic into and out of China, giving the government more power than you would see in other countries over the information being transmitted. The GFoC has multiple tools in its arsenal to achieve its objective:
- Apply a total DNS block by checking the IP (Internet address) against a database of blocked IPs and flat out preventing a user in China from loading a site.
- Check for certain keywords inside a URL, and if any of them are deemed sensitive or dangerous, the website will again be blocked entirely.
- Scan content on a webpage to ensure it is acceptable. If any of the content on your page is deemed undesirable, the page will be prevented from loading.
The implementation of the Firewall also called for regulations to support the enforcement. The regulatory framework for ICP licenses was established under the 2000 Telecommunications Regulations.
What are the types of ICP licenses?
As previously mentioned, there are two types of ICP licenses that can be obtained for your website: ICP Filing (for non-commercial websites) and ICP License (for commercial websites). The main difference is that the ICP filing is granted for informational websites that are not monetized. Meanwhile, the ICP commercial license is granted to websites that engage in retail activity, which involves settling payments online.
In 2025, SaaS platforms, IoT services, and blockchain applications now require ICP filings.
It should also be noted that an EDI (Electronic Data Interchange) license is required for 3rd party marketplaces (e.g. taobao or jd), which are not direct sales platforms.
How do I obtain an ICP license?
ICP licenses are offered for companies that have a physical location in China. In case you’re not planning to hold office in China, you can go through affiliated agencies that offer ways on how to get an ICP license. Hosting and domain registration is usually part of their licensing deal as well. Additionally, hosting must be located in China. To get an ICP license, a series of requirements must be submitted to the Chinese Ministry of Industry and Information Technology. If you don’t have a physical office in China, it might be a hassle for you to do everything on your own.
It should be noted that a PSB Filing (Public Security Bureau registration) must be completed within 30 days of launch.
For detailed steps of the ICP license registration process, please check out our post: Obtaining an Internet Content Provider (ICP) license in China.
Opportunities with the ICP license
There’s an assumption that network monitoring in China, which is what the Firewall is mostly about, is very limiting. In truth, these limits can actually open you to more business opportunities if you are able to fulfill them. If you understand how the Great Firewall works, you can do more than just reach potential Chinese customers. You can also gain valuable insights and access into the digital ecosystem of the Chinese market and diversify your business accordingly.
Once you have an ICP license however you can be assured that your message is able to reach its intended audience. Once your business has its own ICP license it will be able to compete on a level playing field with Chinese national businesses inside of China for SEO rankings and visibility. Put succinctly this ensures that you are maximizing on the opportunity provided by the Chinese market. There is no doubt that obtaining an ICP license can help to unlock the Chinese market for foreign companies, but it is true that it can add a layer of bureaucratic complexity to your operations inside of China.
You can see the ICP License status at a glance
Risks of Non-Compliance
Blocking: Offshore-hosted sites may load slowly or be blocked entirely by the Great Firewall.
Fines: Up to RMB 1 million (~$140,000) for violations.
Data Localization Penalties: Stricter enforcement under the Personal Information Protection Law (2021). Businesses need to meet the requirements for storing Chinese user data within mainland China.
Conclusion
An ICP license remains essential for accessing China’s digital market, but success requires more than compliance. Despite the challenges of obtaining an ICP license, it’s worth the effort to smoothen the process of starting an online business in China. Save time and effort by getting in touch with a certified agent such as GoClick China, so you can focus on business matters and leave the rest up to the China internet experts. Our platform offers regular ICP license renewal and compliance checks. We help you not only navigate the regulatory environment, but optimize performance using China-based infrastructure.
To learn more about succeeding in China, check out our other articles.
If you want to learn more about testing in China, check out our solutions.
Disclaimer
For businesses entering China, partnering with a local compliance expert is essential due to rapidly evolving regulations. Licensing requirements, hosting practices, and enforcement priorities can change with minimal notice or without notice. The information in this article is updated in 2025.
