Answer: Business scope refers to the business activities that a company in China is permitted to engage in, which is registered with the company registration authority and publicly available in China’s National Enterprise Credit Information Publicity System.

Answer: In principle, the company shall carry out business activities within its registered business scope. If a company engages in non-licensed business activities (general business items) outside its registered business scope, the market supervision authority currently will not impose administrative penalties on such behaviors. However, if a company engages in licensed business activities (licensed business items) outside its registered business scope, it will encounter corresponding administrative penalties or even criminal liability.

Answer: If a company engages in licensed business activities outside its registered business scope, the relevant supervision authorities have the right to impose administrative penalties on the company in accordance with the law, including but not limited to ordering it to cease operations, confiscating illegal gains, and imposing fines. Those who commit crimes shall also bear corresponding criminal responsibilities.

Answer: Licensed business items refer to the business activities that require approval from relevant competent authorities and obtain corresponding approval documents or licenses in accordance with laws and regulations.  

Answer: According to the Regulation on the Administration of Registration of Market Entities, if a company changes its business scope, it shall apply for the registration of the change with the company registration authority within 30 days from the date of making the change resolution or decision.