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.
Legal system.
Article 42 of the General Principles of Civil Law of People's Republic of China (PRC) 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.
Extended data
Article 12 of China's Company Law clearly stipulates that the business scope of a company shall be stipulated in the articles of association and registered according to law. A company may amend its articles of association and change its business scope, but it shall register the change. Projects that are required to be approved by laws and administrative regulations in the company's business scope shall be approved according to law. ?
The company's business scope refers to the fields involved in the company's business activities, which is embodied in what kind of production projects, business types and service projects the company has. Companies need to have a certain business scope to carry out business activities. At the same time, determining the company's business scope also involves the following factors:
First, it is convenient for investors to know the investment direction of the company's funds, that is, the projects invested by the funds and the risks that exist or may exist in the projects;
Second, determining the general scope of the company's business activities is conducive to the professional development of the company's business activities;
Third, it is conducive to the company's directors, supervisors, managers and other senior management personnel to clearly understand the company's development prospects and efforts;
Four, is conducive to the establishment and maintenance of a certain management order, business order, to prevent market competition disorder.
Baidu Encyclopedia-Business License
Baidu Encyclopedia-Business Scope