Opening a store without a business license is illegal and will face a series of legal consequences. A business license is a certificate for a merchant to operate legally. Without it, a merchant cannot prove that its business operations are legal and cannot protect its own rights and interests.
1. Face the risk of fines and store closures
If you open a store without a business license, the first thing you face is the risk of being investigated and punished by relevant departments. Once investigated, merchants will face fines. The amount of the fine varies according to the regulations in different regions, but it is usually a large sum. At the same time, merchants may also be ordered to suspend operations for rectification, or even be directly closed down, which will have a huge impact on the business operations.
2. Unable to enjoy legitimate rights and interests
Merchant without a business license cannot enjoy some legitimate rights and interests during the operation process. For example, it is impossible to sign contracts with regular suppliers, unable to issue formal invoices, unable to enjoy some policy preferences, etc. These will have a negative impact on the business operations and even put the business at a disadvantage in market competition.
3. Damage to consumer rights
Merchants without business licenses often have problems with product quality and after-sales service. Once these problems are discovered, they will not only affect the reputation of the merchants, but also harm the rights and interests of consumers. Consumers have the right to require businesses to provide legal certificates when purchasing goods or receiving services. Without a business license, consumers' rights and interests cannot be protected.
In summary:
It is illegal to open a store without a business license. Merchants will face risks such as fines and store closures, will not be able to enjoy legitimate rights and interests, and will also harm the rights and interests of consumers. Therefore, merchants must apply for a business license before opening a store to ensure that their business operations are legal and compliant, so as to protect their own rights and interests and provide consumers with better products and services.
Legal basis:
"Regulations of the People's Republic of China on the Registration and Management of Enterprise Legal Persons"
Article 3 stipulates:
An enterprise must be approved and registered by the registration authority and obtain the "Enterprise Legal Person Business License" before it can obtain the enterprise legal person qualification. An enterprise is established from the date of receipt of the "Enterprise Legal Person Business License". Based on the "Enterprise Legal Person Business License", an enterprise legal person can engrave an official seal, open a bank account, sign a contract, and conduct business activities.
"Measures of the People's Republic of China for Investigating and Punishing Unlicensed Business Operations"
Article 13 stipulates:
Whoever engages in unlicensed business operations shall be subject to The industrial and commercial administration departments shall impose penalties in accordance with relevant laws and administrative regulations. If laws and administrative regulations do not clearly stipulate the penalties for operating without a license, the industrial and commercial administrative department shall order the company to stop illegal activities, confiscate illegal gains, and impose a fine of less than 10,000 yuan.
"Regulations of the People's Republic of China on the Registration and Management of Market Entities"
Article 37 stipulates:
Those who engage in business activities without establishment registration , the registration authority shall order corrections and confiscate illegal gains; those who refuse to make corrections shall be fined not less than 10,000 yuan but not more than 100,000 yuan; if the circumstances are serious, they shall be ordered to close down and suspend business in accordance with the law, and shall be fined not less than 100,000 yuan but not more than 500,000 yuan.