China Company

Company Of Business Scope Change

經營範圍變更

In response to emerging global economic and trade trends, China is actively advancing its policy of opening up to the world by fostering an internationalized and law-based business environment, while enhancing the efficiency of investment, trade facilitation, and regulatory oversight. Pilot Free Trade Zones (FTZs) have been established in locations such as Shanghai, Shenzhen, and Xiamen, offering policy advantages and customs facilitation comparable to bonded areas. For foreign investors intending to establish a company in mainland China, setting up within one of these FTZs—such as in Shanghai, Shenzhen, or Xiamen—requires special attention to the regulations governing business scope. Should there be a need to amend the company’s business scope in the future, it must be confirmed whether the intended scope falls within the industries already liberalized within the FTZ.

It is advisable for investors planning to establish a company or make changes to their business scope within the aforementioned FTZs to consult with experienced professional service agencies in advance, to ensure a smooth process and compliance with applicable regulatory requirements.

I. Definition of business scope

The business scope of a company serves as the legal boundary distinguishing lawful operations from unlawful ones. It refers to the categories, types of products, and service items that a corporate entity is permitted by the state to produce and operate. The business scope reflects the nature of a company’s business activities and its operational direction, constituting the legal limits of its commercial conduct. It also embodies the core aspects of a legal entity’s civil rights capacity and capacity for action. In China, the officially approved business scope is the legal basis for determining whether a company’s operations are compliant or in violation of the law.

II.Provisions of law about changing the business range of China company

According to the General Principles of the Civil Law, an enterprise legal person shall conduct business activities within the approved and registered scope of operations.” This provision legally defines the boundaries of a legal entity’s business activities.

Once a company’s business scope is approved and registered, it acquires the legal right to operate within that scope, as well as the legal obligation not to exceed it. Business activities conducted beyond the approved scope are not protected by law and may be subject to penalties. The approved business scope thus serves as the legal boundary distinguishing lawful from unlawful business operations. If, due to business development, a company needs to expand its scope of operations, it must apply for a formal change to its registered business scope.

  • 1. The establishment of the company in Shanghai, Shenzhen, Xiamen, Kunshan and other areas of China shall be governed by the articles of association and registered in accordance with the law. After the establishment of a company, it may amend the articles of association and change its scope of business, but it should handle the change of registration.
  • 2. The legally established company gets the company’s business license from company registration authority. The date of issue of the business license of the company is the date of establishment of the company. The company’s business license shall set forth the name, domicile, registered capital, paid-in capital, the scope of business and name of the legal representative of the company. If the business license of the company has changed, the company shall change the registration according to law, and the company registration authority shall renew its business license.
  • 3. China company changes the business range should be applied for within 30 days from the date of making the resolution or decision on the change. The change of business scope relates to the laws and administrative regulations or decisions of the State Council project requires approval before registration shall, within 30 days since the applicant company registers the alteration of its business scope approved by the relevant departments of the national day.
  • 4. In China company business range, the provisions of the laws, administrative regulations or decisions of the State Council shall be approved by the project is revoked or canceled license or other approval documents, licenses, or other documents of approval expiration, shall be revoked, revoked license, apply for registration of change within 30 days from other documents of approval or license or other approval document expiry the date or cancel the registration in accordance with the relevant provisions of this ordinance.

III. Conditions for handling the China company business range

  • If the shareholders of a company meet the legally required number and have contributed capital equal to or above the statutory minimum registered capital, any changes to the business scope of a company in China must be submitted to the original registration authority for approval and registration. A company is not permitted to unilaterally amend any registered items without completing the legally required change registration procedures.
  • With years of practical experience in mainland China, Inter Area offers comprehensive support for clients seeking to amend the business scope of their companies in cities such as Shanghai, Shenzhen, Suzhou, and Kunshan. Our services cover the entire process—from strategic consultation and preparation of application documents, to handling local business registration and providing ongoing accounting and administrative support.
  • For those planning to establish a company in locations like Shanghai or Shenzhen, we strongly recommend consulting with a professional advisory firm regarding business scope and related regulatory considerations. Huijia International provides clients with one-stop agency services, aiming to help investors achieve genuine local operation. We serve as a trusted local partner, attentively managing all corporate matters so that investors can focus on expanding their business with confidence and peace of mind.

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