If a company aims to provide online sales platform services to third party traders and charge service fees accordingly, just like Taobao or amazon, it shall apply for a valued added telecom service license, also known as ICP license. If the company only sells its own goods via its own China-hosted website and no platform service is involved, it is generally required to complete the ICP filing procedures for its website only. ICP license is not required under this circumstance.

According to the Provisions on the Administration of Foreign-funded Telecommunications Enterprises of the PRC, the major foreign investor that plans to set up a foreign invested ecommerce platform company shall have obtained good business results and operational experience in running ecommerce platform services. An opinion on the establishment of a foreign invested telecommunications enterprise shall be obtained from the Ministry of Industry and Information Technology of the PRC before the incorporation of the company.

Yes. According to the latest version of China's Special Administrative Measures on Access to Foreign Investment (Negative List), foreign investors are allowed to hold up to 100% equity in a company engaging in online data processing and transaction processing service (operational ecommerce).

There is no minimum capital requirement for company registration according to the company law of the PRC. However, when applying for ICP license, the minimum registered capital required for operating within the territory of a province, autonomous region or municipality directly under the central government of the PRC is RMB1 million; while the minimum registered capital required for operating nationwide or across provinces, autonomous regions or municipalities directly under the central government of the PRC is RMB10 million.

An ICP license is valid for 5 years in China. The company shall apply for the renewal of the ICP license with the approving authority 90 days prior to the expiration.