I. Identification and definition of out-of-range operation
Beyond the scope of business is usually manifested in the fact that enterprises or individuals carry out other business activities without authorization outside the business scope stipulated in the business license or relevant certificates. These activities may involve different industries and fields, and may even involve illegal business activities.
Second, the punishment measures for operating beyond the scope
For enterprises or individuals operating beyond the scope, relevant law enforcement departments will take the following punishment measures according to law:
Warning and order to make corrections: For the minor business practices detected for the first time, law enforcement departments will generally give a warning and order them to make corrections within the prescribed time limit.
Fines: Law enforcement departments will impose fines on those who refuse to make corrections or if the circumstances are serious. The amount of the fine shall be determined according to the nature, circumstances and duration of the illegal act.
Confiscation of illegal income: the law enforcement department will confiscate the illegal income from the business beyond the scope according to law.
Revocation of business license or permit: Law enforcement departments have the right to revoke the business license or permit of enterprises or individuals that have seriously exceeded the scope of business or repeatedly violated the law, so that they cannot continue to engage in related business activities.
Iii. Effects and consequences after punishment
After being punished, an enterprise or individual that operates beyond the scope will not only bear the corresponding legal responsibilities, but also face the following impacts and consequences:
Reputation damage: Exceeding the scope of business activities may lead to the reputation damage of enterprises or individuals, and affect their image and reputation in the market.
Business restriction: after being punished, an enterprise or individual may not be able to continue to engage in certain business activities, resulting in limited business scope.
Loss of partners: exceeding the scope of operation may lead to the trust crisis of partners, which in turn leads to the loss of partners.
To sum up:
It is illegal to operate beyond the scope, and enterprises or individuals should strictly abide by relevant laws and regulations to ensure that business activities are carried out within the permitted scope. Law enforcement departments will take corresponding punishment measures for business activities beyond the scope according to law to maintain market order and a level playing field. At the same time, enterprises or individuals should fully realize the harm and consequences of operating beyond the scope, consciously abide by laws and regulations, and standardize business practices.
Legal basis:
Company Law of the People's Republic of China
Article 12 stipulates:
The business scope of the company is stipulated in the articles of association and registered according to law. A company may amend its articles of association and change its business scope, but it shall register the change.
Projects that are required to be approved by laws and administrative regulations in the company's business scope shall be approved according to law.
Regulations of People's Republic of China (PRC) Municipality on the Administration of Enterprise Legal Person Registration
Article 30 provides that:
If an enterprise as a legal person is under any of the following circumstances, the registration authority may give a warning, a fine, confiscation of illegal income, suspension of business for rectification, temporary suspension and revocation of the business license of the enterprise as a legal person according to the circumstances:
(a) concealing the real situation in the registration, practicing fraud or opening business without approval;
(2) changing the main registered items without authorization or engaging in business activities beyond the approved and registered business scope;
(3) Failing to cancel the registration in accordance with the provisions;
(4) Forging, altering, leasing, lending, transferring or selling the Business License of Enterprise as a Legal Person and its duplicate;
(5) evading, transferring funds or hiding property to evade debts;
(6) engaging in illegal business activities.
Measures of People's Republic of China (PRC) Municipality on the Administration of Partnership Enterprise Registration
Article 26 provides that:
In any of the following circumstances, the partnership enterprise shall be ordered by the enterprise registration authority to make corrections and be fined between 5,000 yuan and 50,000 yuan; If the circumstances are serious, the enterprise registration shall be revoked and a fine of not less than 50,000 yuan but not more than 200,000 yuan shall be imposed:
(a) failing to go through the registration of change in accordance with the provisions of these measures;
(2) engaging in business activities beyond the registered business scope;
(3) Forge, alter, lease, lend or transfer the business license.