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Setting up a company

Business scope in China: why the wording on your licence matters

Every Chinese company's business licence lists its business scope: the activities it may carry out. Since 2022, scopes are chosen from a standard national catalogue. Activities outside the scope can lead to fines, problems with invoicing and trouble with banks, so the scope should be planned before registration.

What it is

The business scope (经营范围) is printed on your business licence and defines what the company is allowed to do. Since the 2022 business registration rules, scope items are chosen from a standardised national catalogue rather than written freely.

Why it matters

  • Invoicing: the tax system expects your fapiao to match activities in your scope.
  • Banking and customs: banks and customs check transactions against it.
  • Licences: some items are “licensed activities” that need a permit after registration, such as food sales, medical devices or value-added telecom services.
  • Enforcement: operating clearly outside the scope can lead to fines.

Choosing a scope

  1. List what the company will actually do in the next two to three years.
  2. Map each activity to the catalogue wording.
  3. Flag licensed items and check the Negative List.
  4. Avoid padding the scope: unnecessary licensed items can slow registration.

Changing it later

A scope can be amended by shareholder resolution and a filing with SAMR. It’s routine, but it takes time, so it’s better to get it right at the start. We plan the scope as part of every WFOE registration.

Reviewed by Choi & Partners · 3 October 2026. This page is general information, not legal advice.
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