Contexts
Corporate Law
Translation Equivalents
- Permitted Business Activities
- Business Purpose
- Business Activities
- Public benefit purpose
Analysis
Business activities (or purpose) in Chinese law refer to the activities that a corporation is permitted to carry on. The source word is ambiguous in Chinese, but highly defined in English and the ontologically accurate English equivalent will depend on the indexical object of the source word. In American law, this depends greatly on the field. For the qualification to do business in a province, the business activities permitted within that region are the ‘permitted business activities’. Where the corporate entity itself is described, this refers to the business purpose as it is known under corporations law, in America today only public benefit corporations will have a limitation on their operating activities during filing for a certificate of incorporation.
Use of this term in legal documents is essential in order to be unambiguous about the legal results that will occur for parties to a business entity formation. See our Article on Chinese law for more details. In addition, because the cultural practice in China is so different from the United States, we have written an article explaining for clients how this system works.