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People's Daily Online>>China Society

Online traders to get better deal

By Xu Jingxi (China Daily)

09:05, March 09, 2012

Students at Yiwu Industrial and Commercial College in Zhejiang province turn their dormitory into a warehouse to stockpile products they sell online. A growing number of students in China are setting up online businesses in the fast-growing sector. (Provided to China Daily)

The Guangdong government is planning to relax restrictions on the registration of online stores.

A proposal by the provincial administrative agency for industry and commerce will allow online store owners to use their residences as business premises when they apply for a license.

It will not be compulsory for Guangdong residents to register their online stores if they want to run the businesses as individuals. Instead, they just need to go through the online trading platform's real-name registration procedures.

However, only a limited number of online store owners seem willing to go to the trouble to gather certificates and fill in application forms.

"I wouldn't have opened an online store if I had to handle the complicated procedures. I make a profit of just 1,000 yuan ($158) to 2,000 yuan per month. It's not worth the headache," said Zou Xuan. The 25-year-old engineer working in Guangzhou runs an online store to sell shoes and clothes in his spare time.

He just needed to type in his name and ID number for the online trading platform to be verified by the National Citizen Identity Information Center before he put his goods on sale.

"Besides, I will have to hand in financial reports to the government after getting my online store registered. I may face taxation then," Zou admitted.

None of the online store owners Zou knows have registered their online stores or filed tax returns.

"Most online store owners are running small businesses. It will be an unprofitable business if we have to pay tax."

Zhang Yanlai, a lawyer from Zhejiang Brighteous Law Firm and a member of Policy and Law Committee of China Electronic Commerce Association, admitted that it is difficult for the government to tax an online store that hasn't registered with the administrative agency of industry and commerce.

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