The commodity categories, varieties and service items that the state allows enterprises to produce and operate reflect the content of business activities and the direction of production and operation, are the legal boundaries of the scope of business activities of enterprises, and reflect the core contents of their civil rights and capacity for behavior.
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. The approved business scope of an enterprise is the legal boundary to distinguish between legal and illegal business operations of an enterprise.
Provisions on the administration of registration of business scope of enterprises:
Article 1 These Provisions are formulated in accordance with the relevant laws and administrative regulations for the purpose of regulating the administration of registration of business scope of enterprises, regulating business activities of enterprises and protecting the legitimate rights and interests of enterprises.
Article 2 These Provisions shall apply to enterprises registered in People's Republic of China (PRC).
Article 3 The business scope refers to the business scope of an enterprise registered by the enterprise registration authority according to law.
Baidu Encyclopedia-Business Scope