High-Value Life GuideLife's expensive mistakes
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Business and platforms

The code shipped. Did the paperwork?

Starting a business, running a platform, hosting, payments and compliance. Regulatory material primarily concerns mainland China.

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Chapter 12 editorial cartoon: Before startup life: change the world. Enlarge illustration
Before startup life: change the world.
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Editorial cartoon · Chapter 12Before startup life: change the world.

Original illustration with Chinese lettering; the English dialogue is below. Humour is a reading aid, not evidence.

English dialogue
  • Open for business!
  • Keep the family savings off the table.

Three starting points

Selected from 41 guides
Chapter 12 · Guide 1Author's grade B

Only invest money you can afford to lose — never use family savings or borrowed funds

Any debts incurred by a sole proprietorship must be repaid using your personal assets and funds. If it’s unclear whether the business was run by the w…

Cost
Zero upfront cost. Before you start, set a personal limit: this is the maximum amount you …
Benefit
Losing money is not the only risk. For sole proprietorships, debts are tied to personal as…
Chapter 26 · Guide 1Author's grade A

Platforms must never collect payments themselves and then transfer them to sellers; funds must be settled directly via a licensed payment institution.

If a platform first receives buyer payments into its own account and then forwards them to sellers, it is effectively operating a payment business. Ru…

Cost
No monetary cost is involved. However, it requires some time to integrate a product from a…
Benefit
According to regulations, a payment business is defined as “transferring monetary funds ba…
Chapter 26 · Guide 2Author's grade A

Paid websites require a license; platforms that facilitate transactions need a different type of permit; free sites only need to be registered.

Websites that charge users must first obtain a Value-Added Telecommunications Business License. This license is issued solely to companies; individual…

Cost
Registration is free of charge. Obtaining a Value-Added Telecommunications Business Licens…
Benefit
The regulations state: “The state implements a licensing system for commercial Internet in…