Filling in the business scope when registering a company is a headache for many entrepreneurs. If the business scope is filled in too narrowly, it may affect the development of the company's business; if it is filled in too broadly, it may affect the enjoyment of preferential policies. . In fact, don’t worry. Below, Mande Enterprise Service has compiled some misunderstandings about filling in the business scope. Just don’t fall into these misunderstandings. Let’s learn about them together.
1. Use adjectives
For example, the retail of high-end imported Swiss watches, the production of green organic local specialty foods, the wholesale of Chinese-style clothing for square dancing for elderly women, etc.
Enterprises believe that the adjectives in this type of business scope are necessary to describe their business characteristics. In fact, the business license is not a billboard. The terminology should be objective and neat, without any modifications.
2. Repeated terms
For example, sales of clothing and shirts, manufacturing of metal tools, scissors, and shovels, wholesale of hardware products, wrenches, and pliers, wholesale of building materials, sand, and wood, etc. The problem with this type of business scope is that clothing includes shirts, and metal items include scissors and shovels.
So you only need to apply for items related to clothing, metal tools, hardware products, and building materials. The specific business scope is now included and there is no need to go into details.
3. Colloquial language
For example, planting potatoes, roasting sweet potatoes, etc. are all spoken words, and should be based on the "National Economic Occupational Classification" and related document standards for potato planting, catering services, etc. .
4. Technical terminology
Recycling straw to process feed, connecting factory waste heat to heat residents, XX producing XXX products, and some technical professional terms, etc.
This type of business scope requires that its raw materials, production processes, production techniques, and technical features be added to the business scope. The purpose is generally to express the particularity of its products or services, but raw materials and production techniques are not registered matters. The company makes its own decision and cannot write it on the license.
5. Vague terms
For example, providing various services needed by the public, selling products produced by the company, etc. The former is vague and the occupation cannot be determined. The latter does not need to write sales because the manufacturing industry includes sales.
6. Confusion between management behavior and business behavior
For example, internal recruitment of employees, acquisition of raw materials or fixed assets, warehousing of the company's own products, free product consultation, etc. These non-operating internal behaviors do not need to be included in the business scope.
7. Confusion between civil behavior and business behavior
Non-business house leasing, non-capital market external investment, non-real estate development corporate house construction, etc., are not within the scope of business matter. This is a civil act between the company and the lessor, its subsidiaries, and the construction company. It is not a business act and should not be included in the scope of business.
The above are some misunderstandings when filling in the business scope during company registration. Nowadays, the company registration process is constantly being optimized, but there are still many issues that need attention during the actual operation, so it is best not to have relevant experience. Enlist the help of a professional incorporation agent.