For licensed trades, do not open before the permit arrives
In China, unlicensed operation can bring closure, confiscation of proceeds and a fine up to RMB 10,000 under the general rules. Restricted goods and unapproved securities, futures, insurance or payment-settlement businesses can constitute illegal business operations in serious cases, with a basic sentencing band up to 5 years. Renovating before checking eligibility and “trial operation” before approval are common traps.
What it takes
Free to check. Determine whether the business needs a permit before opening. Catering and food sales generally need a food-operation license; selling only already packaged food uses filing instead. Wait for the license.
What you may gain
The department designated by the relevant law investigates operating without permission. Where an unregistered operation has no separately specified penalty, authorities order cessation, confiscate proceeds and may fine up to RMB 10,000. Unauthorized dealing in monopoly, exclusive-sale or restricted goods, or unapproved securities, futures, insurance and payment-settlement business, can constitute illegal business operations when serious. Penalties are up to 5 years' imprisonment or short-term criminal detention plus a fine of 1–5 times proceeds; particularly serious cases carry more than 5 years. Chinese rules apply.
Context & considerations
Finance, medical services and education/training have specific licensing laws; only the general enforcement and criminal rules were verified here. Milk-tea and snack shops are catering services needing food-operation permission. Renovation before approval and early trial operation are frequent mistakes. See entry 8 for food categories and fresh meat/produce.
Research & references
State Council of China (2017). Measures for Investigating Unlicensed and Unregistered Business Operations, Order No. 684, Articles 5, 6 and 13. https://www.gov.cn/zhengce/zhengceku/2017-08/23/content_5219861.htm; State Administration for Market Regulation (2023). Food Operation Licensing and Filing Measures, Order No. 78, Article 4. https://www.gov.cn/gongbao/2023/issue_10606/202307/content_6894763.html; National People's Congress of China (1997). Criminal Law, Article 225. https://www.spp.gov.cn/spp/fl/201802/t20180206_364975.shtml