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.
According to the provisions of the Company Law, there are the following requirements for the permitted business scope of an enterprise:
1. The business scope of an enterprise shall be stipulated in the articles of association, and it shall not apply for registration beyond the business scope stipulated in the articles of association.
2. The business scope of an enterprise must be registered according to law, that is, the business scope of an enterprise shall be subject to the approval of the registration authority. An enterprise shall engage in business activities within the business scope approved by the registration authority.
3. Projects within the business scope of enterprises restricted by laws and administrative regulations must be approved according to law before registration.
Extended data:
Penalties for operating beyond the scope
Beyond the approved and registered business scope, in violation of the provisions of the fifth paragraph of Article 4 of the Measures for the Investigation and Ban of Unlicensed Business, the administrative department for industry and commerce shall investigate and deal with it in accordance with the provisions of the Measures for the Investigation and Ban of Unlicensed Business.
1. those who operate without a license shall be banned by the administrative department for industry and commerce according to law, and their illegal income shall be confiscated.