7

Licensed trades: don't open until the license is issued

Grade ABig benefitFreedomFreeSome timeNo willpower

Opening without a license is handled by the department that governs that license under its rules. With no business license and no specific penalty rule: ordered to stop, illegal gains confiscated, plus a fine of up to 10000 yuan. Selling monopoly or restricted goods, or doing securities, futures, insurance, or payment settlement—serious cases are illegal business operation; the lowest tier is up to 5 years.

Cost
No money. Before opening, check whether your line needs a license. Catering and selling food need a food business license. Selling only others' prepackaged food needs no license—file for record instead. Open only after the license or filing is done.
Benefit
Operating without authorization is handled by the department the law designates. No license where the law doesn't spell out a penalty: stop, confiscate gains, fine up to 10,000 yuan. Heavier track: monopoly or restricted goods without permission, or securities, futures, insurance, or payment settlement without approval—serious cases are illegal business operation, up to 5 years' imprisonment or short-term detention plus a fine of 1–5 times illegal gains; especially serious, above 5 years (nationwide).
Notes
Finance, medical, and training each have their own licensing laws; this item only checked generic enforcement and criminal articles. Milk tea and snack shops are catering—food business license required. Renovate-first, trial-before-license is a common trap. Food tiers and whether fresh meat and vegetables need a license: item 8.
Sources · 3
  1. 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). gov.cn/zhengce/zhengceku/2017-08/23/content_5…
  2. 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). gov.cn/gongbao/2023/issue_10606/202307/conten…
  3. 全国人大 (1997). 刑法(第二百二十五条). spp.gov.cn/spp/fl/201802/t20180206_364975.shtml

← Read the whole chapter: 12. Starting a business: don't bet the family savings

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