Businesses requiring licenses must wait until they obtain one

Operating a business without a license may result in a temporary shutdown order, confiscation of all earnings, and a fine of up to 10,000 yuan. If you handle goods subject to exclusive distribution rights, or engage in securities, futures, insurance, or payment settlement services without authorization, severe violations may constitute the crime of illegal business operations, punishable by up to five years in prison. Renovating premises first and then attempting a trial run prior to obtaining a license are common mistakes.

No cost involved. Before opening, verify whether your business type requires a license. Restaurants and food vendors must obtain a food business license. Selling only pre-packaged food products does not require a license — only registration is needed. Only then can you officially open for business.

Authorities designated by law will investigate any unlicensed businesses. For operations without a license where no specific penalty is stipulated, operators must cease activities, surrender all illicit earnings, and pay a fine of up to 10,000 yuan. More serious penalties apply to businesses dealing in goods requiring exclusive distribution rights or engaging in securities, futures, insurance, or payment services without approval. Such violations may also constitute illegal business operations, resulting in imprisonment of up to five years and fines ranging from one to five times the illicit profits earned. Particularly egregious cases may incur sentences exceeding five years nationwide.

Licensing requirements for financial, medical, and educational services are governed by separate laws; this entry only outlines general enforcement procedures and relevant criminal statutes. Milk tea shops and snack vendors fall under food services and must secure a food business license. Renovating premises first and conducting trial runs prior to licensing are frequent pitfalls. Details regarding licensing tiers for the food industry and requirements for selling fresh produce are covered in Section 8.

国务院 (2017). 无证无照经营查处办法（国务院令第 684 号，第五、六、十三条）. https://www.gov.cn/zhengce/zhengceku/2017-08/23/content_5219861.htm；市场监管总局 (2023). 食品经营许可和备案管理办法（市场监管总局令第 78 号，第四条）. https://www.gov.cn/gongbao/2023/issue_10606/202307/content_6894763.html；全国人大 (1997). 刑法（第二百二十五条）. https://www.spp.gov.cn/spp/fl/201802/t20180206_364975.shtml