Business scope refers to the categories, varieties and service items that the state allows enterprises to produce and operate, which reflects the content and direction of enterprise business activities, is the legal boundary of the scope of enterprise business activities, and embodies the core content of enterprise civil rights capacity and behavior capacity. Business scope refers to the production, operation and service items that an enterprise can engage in, and is a required item when applying for company registration.
The General Principles of the Civil Law stipulates that "an enterprise as a legal person shall engage in business within the approved and registered business scope." This legally defines the scope of business activities of enterprise legal persons.
Once the business scope is approved and registered, the enterprise has the right and ability within this scope, and at the same time undertakes the obligation not to operate beyond the scope. Once it is exceeded, it will not only be protected by law, but also be punished. The approved business scope of an enterprise is the legal boundary to distinguish between legal and illegal business operations of an enterprise.
Provisions on the administration of registration of business scope of enterprises:
1. In order to standardize the registration management of enterprise business scope, standardize enterprise business behavior and protect the legitimate rights and interests of enterprises, these Provisions are formulated in accordance with the laws and administrative regulations on enterprise registration management.
2. These Provisions shall apply to enterprises registered in People's Republic of China (PRC).
3. Business scope refers to the business scope of an enterprise registered by the enterprise registration authority according to law.
4. Where the business scope of an enterprise applying for registration belongs to the business items that must be approved before registration as stipulated by laws, administrative regulations or the State Council decisions (hereinafter referred to as pre-licensed business items), it shall apply for registration with the enterprise registration authority on the strength of the approval documents and certificates of the examination and approval authority before applying for registration.
5. The enterprise registration authority shall register the pre-licensed business projects according to the approval documents and certificates of the examination and approval authority. If the pre-approved business items are not clearly indicated in the approval documents and certificates, the registration shall be handled in accordance with the relevant laws, administrative regulations or the provisions of the the State Council decision and the classification of national economy industries.