China Company

Company Of Business Scope Change

經營範圍變更

In order to adapt to the new trend of global economic and trade development and actively promote opening up, China has focused on cultivating an international and rule-of-law business environment, striving to build an investment and trade facilitation system with international standards, free currency exchange, efficient and convenient regulation, and a normative legal environment. The free trade zones in Shanghai, Shenzhen, and Xiamen have been opened up, and currently, the role of the free trade zones and bonded zones in the trade of goods is basically the same.

If investors want to set up a company in China and choose to do so in the free trade zones in Shanghai, Shenzhen, or Xiamen, they need to be aware that there are certain areas where they can apply for changes in their business scope. If they want to set up a company or change their business scope in the free trade zones in Shanghai, Shenzhen, or Xiamen, they can first consult with a professional agency.

I.Regulations about the business scope of China company

  • Due to the general principles of civil law: “Enterprise juristic person should engage business within the scope approved and registered.” Legally prescribed the range of enterprise juristic person management and activity.
  • After getting the approval of establishment company range, the enterprise has the rights and undertake the obligation can’t beyond the scope of management, if not, not only are they not protected by the law but also subject to punishment. The approved scope of business is the legal limit to distinguish between the legal and illegal operation of an enterprise.

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

The General Principles of the Civil Law stipulate that “an enterprise legal person shall engage in business within the approved scope of business registration.” This legally defines the scope of business activities for enterprise legal persons. Once the approved scope of business registration for a company is established, the enterprise has the right and capacity to conduct business within this scope, but it also assumes the obligation not to operate beyond it. If the enterprise operates beyond the approved scope, it not only loses legal protection but may also face penalties. The approved scope of business operations for an enterprise is the legal boundary that distinguishes between lawful and unlawful business operations. If a company needs to expand its business scope due to increased demand, it must apply for a change in 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

  • Conditions for handling the China company business range in Shanghai, Shenzhen, Xiamen, and Kunshan.  Shareholders are in compliance with a quorum, the capital contribution of shareholders reaches the minimum amount of statutory registered capital. 
  • Changes in the scope of business registration must apply at the original company registration authority applies for the registration of the scope of business change, if not, the company may not alter its registration without authorization.
  • Inter-Area has years of experience, can service clients not only the registration of the scope of business change in Shanghai, Shenzhen, Xiamen, Kunshan but also complete the direction of the company consulting, application documents, registration of local industry and commerce, to follow-up accounting services agent. If you want to establish a company in Shanghai, Shenzhen, Xiamen, Kunshan, we recommend finding an agency. 
  • Inter-Area provides one-stop service for clients, we also can pay attention to local business affairs. Clients can focus on their company and expanding a business.

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