There are generally two forms of ICP licenses, which include the following:

ICP Commercial License

An ICP license for commercial websites lets you operate an e-commerce site in China. This license is necessary if your business primarily conducts business online. This license is required if you plan to generate income from any of the following activities in China:
- Make online sales
- Advertise
- Conduct business activities that involve payments through your platform

The following entities may acquire an ICP commercial license:
- Chinese-owned businesses that have a Chinese business license
- Joint-venture companies

Bei'an

A Bei’an or ICP filing is a license for non-commercial websites that provide information to people who use the website. Consumers in mainland China can access this type of site, but you cannot sell your products directly online with this type of ICP license.

Why You Need an ICP License

Acquiring an ICP license is a legal requirement in China in order to operate a website in mainland China.

Having an ICP license also allows you to access a Chinese content delivery network. You can also get hosting services in China with an ICP license, which allows you to have a faster-loading website.

Ultimately, having an ICP license allows you to have a better-performing website so that customers take your business more seriously.

Can You Avoid Getting an ICP?

As stated above, acquiring an ICP is necessary if you wish to host a website in mainland China.

If your site is not hosted on the mainland, you do not technically need an ICP. If you do not plan on marketing to Chinese consumers, you may not wish to go through the extensive process of acquiring an ICP.

However, if you want a serious online presence in China, it is best to pursue this route.

Some businesses take a chance and a site outside China hosts their website. They may hope that their website does not get blocked. They may even try to carefully avert detection by avoiding any politically sensitive keywords and are not hosted on blocked domains.

However, if their site later does get blocked, it cannot be unblocked in the future.

It is also important to understand that even if you have an ICP, that is not a guarantee that your website will not be blocked.

Having an ICP merely means that you are approved to host your website on a mainland Chinese server, not that your site will be visible or will not be blocked.

Some businesses choose to host their Chinese website in Hong Kong to avoid the rules that apply to mainland China sites. There are different rules for Hong Kong than for mainland China.

If you do not acquire an ICP when you need one, you will not be able to purchase hosting in mainland China. All hosts are required to ask for an ICP license before they can release server credentials to a business.

If you defy the laws in China, your site can be permanently blocked and you will have no right to appeal or alter this decision.