Does Tiktok cross-border e-commerce require a business license? How much investment is needed to do Tiktok?

Many people often wonder if they need a business license when they get involved in TikTok’s cross-border e-commerce sector. In this article, we will explore the operation of TikTok’s cross-border e-commerce and whether a business license is necessary.

1. TikTok’s cross-border e-commerce operations

TikTok cross-border e-commerce refers to selling products on the TikTok platform to users from different countries and regions. This e-commerce model usually involves the following steps:

Select your audience: First, sellers need to identify their target audience in order to provide them with relevant products and content.

Create a TikTok account: Sellers need to create a dedicated business account on TikTok to display and sell their products.

Produce attractive content: TikTok cross-border e-commerce relies on attractive video content to attract users. These contents usually include product demonstrations, tutorials, promotional videos, etc.

Links to e-commerce platforms: Sellers often provide purchase links in their TikTok accounts, directing users to their online stores or third-party e-commerce platforms such as Shopify or Amazon.

Fulfilling orders: Once a user places an order, the seller needs to fulfill the order, including processing payments, packaging the goods, and providing courier services.

Customer Service: Sellers also need to provide good customer service, answer users’ questions, and resolve issues that may arise.

2. Do I need a business license?

In TikTok cross-border e-commerce, whether a business license is required usually depends on the country and region you are located in and the type of goods you sell. Here are some general guidelines:

Country regulations: First, you should be aware of the laws and regulations in the country or region you live in. Some places may require all businesses to have a business license, while other places may allow individuals to sell certain types of goods without a license.

Product Type: Certain product types, such as food, medicine, cosmetics, etc., may require specific permits or licenses, not only on TikTok but also on other e-commerce platforms. Make sure you understand and comply with the regulations regarding the sale of your products.

Tax requirements: You should also consider tax issues. Some places require sellers to report taxes, so you may need to register for a tax account.

Tariffs and import regulations: If you are selling across borders, you need to understand the tariffs and import regulations of your target countries to avoid unnecessary issues.

It should be emphasized that TikTok, as a social media platform, usually does not directly require sellers to provide business licenses. However, this does not mean that you can ignore national and regional regulations. Compliance operations are crucial to avoid legal issues and business risks.