Administration of Registration of the Scope of Business of Enterprises Provisions

Promulgated by the State Administration for Industry and Commerce on 14 June 2004 and effective as of 1 July 2004.

Article 1　These Provisions have been formulated on the basis of the laws and administrative regulations related to the administration of enterprise registration in order to standardize the administration of registration of the scopes of business of enterprises,standardize the operations of enterprises and protect the lawful rights and interests of enterprises.

Article 2　These Provisions apply to enterprises registered in the People’s Republic of China.

Article 3　The "scope of business" is the scope within which an enterprise engages in business activities,and shall be registered with an enterprise registration authority in accordance with the law.
The scope of business of an enterprise shall be registered by an enterprise registration authority according to law upon the application of the investor(s) or the enterprise. The scope of business of the enterprise shall be consistent with the stipulations of the articles of association or partnership agreement.

Article 4　Scopes of business are divided into licensed operations and general operations.
"Licensed operations" means operations for which an enterprise shall apply for the approval of the relevant authority in accordance with laws,administrative regulations and State Council decisions before applying for registration.
"General operations" means operations for which an enterprise may apply on its own without approval.Article 5　To apply for licensed operations,an applicant shall submit an application to the examination and approval authority in accordance with laws,administrative regulations and State Council decisions and,after the application is approved,apply to the enterprise registration authority for registration on the strength of the approval document and certificate. If the examination and approval authority imposes restrictions on the term of operation of the licensed operation,the registration authority shall register such term of operation,and the enterprise shall engage in operation within the term of operation approved by the examination and approval authority.

To apply for general operations,an applicant shall select on its own one or more business categories by reference to the Industrial Classification of the National Economy and the relevant provisions,and apply directly to the enterprise registration authority for registration in accordance with the law.

Article 6　The enterprise registration authority shall register licensed operations on the basis of the approval document and certificate issued by the examination and approval authority. If a licensed operation is not stated in the approval document or certificate or the statement does not conform to standards,registration shall be made in accordance with the relevant laws,administrative regulations and State Council decisions,and the Industrial Classification of the National Economy.

The enterprise registration authority shall register general operations in accordance with the articles of association,partnership agreement or application of the enterprise by reference to the categories in the Industrial Classification of the National Economy and the relevant regulations.

Article 7　The scope of business of an enterprise shall include or reflect the industry or business characteristics in the enterprise name. In the case of an enterprise that operates in more than one industry,the industry to which the first operation in its scope of business belongs shall be the industry of that enterprise.

Article 8　An enterprise that changes the scope of business shall,within 30 days of the date on which the resolution or decision on the change is made,apply to the enterprise registration authority for a change of registration. If a licensed operation is involved,it shall,within 30 days of the date of approval of the examination and approval authority,apply to the enterprise registration authority for change of registration on the strength of the approval document and certificate.
A partnership or wholly individually-owned enterprise that changes the scope of business shall,within 15 days of the date on which the decision on the change is made,apply to the enterprise registration authority for change of registration.

Article 9　If an enterprise newly established following a division or merger applies for a licensed operation,it shall apply to the examination and approval authority specified in laws,administrative regulations and State Council decisions in accordance with the law before applying for registration and,after the application is approved,apply to the enterprise registration authority for registration on the strength of the approval document and certificate. If an enterprise that continues to exist following a division or merger applies for a licensed operation and such operation has been approved by the examination and approval authority prior to the change of registration,the enterprise shall not be required to complete the examination and approval procedures again.

Article 10　If an enterprise changes its enterprise type,it shall not be required to complete the examination and approval procedures again for licensed operations that have been approved by the examination and approval authority prior to the change of enterprise type,unless otherwise stipulated by laws,administrative regulations or the State Council.

Article 11　If there is a change in the investor(s) of an enterprise,the enterprise shall not be required to complete the examination and approval procedures again after the change of investor(s) for the licensed operations that have been approved by the examination and approval authority,unless If an investor of the enterprise is changed from a domestic investor to a foreign investor or from a foreign investor to a domestic investor,the enterprise registration authority shall register the scope of business anew on the basis of the approval document and certificate issued by the examination and approval authority.

Article 12　The scope of business of a branch incapable of assuming civil liability independently (a Branch) shall not exceed that of the enterprise to which it belongs.

If a Branch engages in a licensed operation within the scope of business of the enterprise to which it belongs,it shall apply to the examination and approval authority for approval,unless otherwise stipulated by laws,administrative regulations or the State Council.

If a Branch is individually approved by the examination and approval authority to engage in a licensed operation,the enterprise may apply for addition of the corresponding scope of business on the basis of the approval document and certificate for the licensed operation granted to the Branch,but the words "(Branch operation)" shall be noted after the scope of business applied to be added.

Article 13　If the scope of business applied for by an enterprise is in the following circumstances,the enterprise registration authority shall not grant registration:
1. the operation is prohibited to be engaged in by enterprises according to laws,administrative regulations or State Council decisions;
2. it is a licensed operation but no approval document or certificate of the examination and approval authority is submitted;
3. the registered capital fails to reach the minimum amount of registered capital required by laws or administrative regulations for engaging in such operation;
4. laws,administrative regulations or the State Council stipulate that enterprises of specific industries may only engage in approved operations,and the enterprise applies for other items;
5. other circumstances specified by laws,administrative regulations or the State Council.

Article 14　If an enterprise is in any of the following circumstances,it shall cease the operation in question and apply to the enterprise registration authority for change of registration or deregistration of its scope of business:
1. after a general operation in its scope of business has been adjusted as a licensed operation by laws,administrative regulations or State Council decisions,the enterprise fails to apply for examination and approval and obtain approval in accordance with the relevant provisions;
2. a licensed operation in its scope of business is required by laws,administrative regulations or State Council decisions to be examined and approved anew,but the enterprise fails to handle the examination and approval procedures and obtain approval in accordance with the relevant provisions;
3. the term of operation of a licensed operation in its scope of business as approved by the examination and approval authority has expired,but the enterprise fails to handle the examination and approval procedures again and obtain approval;
4. a licensed operation in its scope of business is cancelled by the examination and approval authority.

Article 15　If an enterprise engages in licensed operations without approval or registration or in violation of Article 14 hereof,the enterprise registration authority shall investigate and handle the matter in accordance with the Investigating,Handling and Banning Unlicensed Business Operations Procedures.

Article 16　If an enterprise engages in general operations without registration,the enterprise registration authority shall investigate and handle the matter as operation in excess of scope in accordance with the law.

Article 17　These Provisions shall be implemented as of 1 July 2004.