Many individuals who register companies in Guangzhou are aware that before obtaining a business license through industrial and commercial registration, it's necessary to provide the company name and scope of business. However, many clients are not clear on how to write the scope of business and what to pay attention to when filling it out. Below, the editor has compiled several points to note when filling out the scope of business during company registration in Guangzhou.
Misconception #1: Not Paying Attention to the Order of Business Scope
Many businesses face this situation: when operating in multiple industries, the scope of business in the company's scope of operation should align with the industry it belongs to. This is because tax authorities refer to industry standards during audits. Beware of potential losses due to incorrect classification!
Case: Company A specializes in business services with a secondary focus on goods sales. However, when drafting its business scope, it mistakenly placed sales as the primary activity. During the tax bureau's case selection process, comparing with the wholesale and retail sector, Company A had a lower tax burden, and thus was arbitrarily targeted by the tax authorities.
Myth Two: Arbitrary writing of branch offices
The company has established a branch office. However, as the branch cannot independently assume civil liabilities, its business scope must not exceed that of the parent company. Therefore, the branch's business scope should be within the parent company's scope.
If a subsidiary is established, its scope of business does not need to be within the parent company's scope. Since the parent and subsidiary often provide services to each other, the parent company should expand its business scope to include commercial services, and the subsidiary should increase its scope to include services provided to the parent company.
Misconception Three: Failure to Consider Assessed Collection
Newly established businesses planning to apply for a tax levy authorization should avoid including business scope that is not eligible for tax levy authorization.
Myth Four: The more business scope, the better.
Due to the inability to self-issuance for business activities outside of the scope, it's necessary to go to the tax bureau for assistance. Many companies, to save trouble, list all potential business scopes they can think of. However, they often fail to realize that certain business scopes are not eligible for tax incentives. Moreover, a disorganized list of business scopes can give an unprofessional impression.
Myth Five: Copy经营范围 at Will
Many clients may find themselves in a situation where, due to not being clear about the company's scope of business, they end up looking online. Regarding the process of registering a company, I suggest that while these scope of business references can be helpful, don't copy them entirely. Different companies have very different focuses in their operations. The scope of business should highlight the company's main business, avoiding overpayment of taxes.
All information on this site is provided for reference and learning purposes only and does not constitute legal basis for actual operations. For any inquiries or related needs, please consult Guangzhou Yida Zongchuang Space Co., Ltd.
