What is the purpose of reserving the company name in China ?
Before reserving the company name in China, the administration shall verify that the name chosen for the company to be established is not already used by another company within the same city/province where the FIE is to be incorporated.
This verification step is required by the law, and has to be carried out before the approval of the incorporation documents which shall indicate the company name.
Moreover, reserving the company name enables to protect the name and to benefit from an exclusive right of use.
Is it mandatory to select a Chinese company name?
Yes, the registration and reservation of the company name are only related to the Chinese name of the company. Therefore, it is mandatory to select a company name in Chinese characters.
It is not possible to register a company name in Latin characters. So only the Chinese name of the company can be protected by the registration, and not the foreign name.
There are two approaches when selecting the Chinese commercial name of your company:
- Choosing a Chinese commercial name which is a literal translation of the phonetic of the English name, or
- Choosing a Chinese commercial name translating the aim and the purpose of your business.
According to the applicable regulations, the name of the company shall at least include:
- A commercial or identification name selected by the investors;
- The activity of the company, such as Trading, Consulting, Manufacturing;
- The company place of registration, for example: 上海Shanghai;
- The form of the company, for example: Company Limited.
-> This article may also be of interest to you : The Approval and Filing Procedure – Foreign Investment in China
To know more, download our legal handbooks related to “Setting up a new business structure in China”…
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