How can foreign investors set up online business in China?
After opening up a physical shop in China, a foreign investor can set up an online store by creating a website through which selling is conducted. This will require the foreign investor to first set up a foreign-invested commercial enterprise (FICE) for the physical store, and then create an online shop selling the same range of products. An Internet Content Provider (ICP) License is not required, but an ICP filing must be made. The online shop is not permitted to engage in delivery and online payment in addition to selling products simultaneously. To engage in delivery, a separate wholly foreign-owned enterprise (WFOE) must be established and a transportation license must be acquired, which is a time consuming and complicated procedure. Most online shops outsource the delivery process to freight forwarders such as EMS, TNT, China Post, etc.
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