A Brief Introduction on China’s

Company Name Approval

Xiao YunEnterprise Registration

BureauSAIC

The authorities for company registration and company name approval are Administrations for Industry & Commerce (AICs) at different levels.

I. Characteristics of Company Name Approval The total number of companies is large. Company name approval is carried out by

authorities at different levels. Examination is carried out before company

names are approved for using.

A. The total number of companies is large.

8. 579. 19

9. 64 9. 7110. 43

0

2

4

6

8

10

12

2005 2006 2007 2008 2009

1509, 28%

3939, 72%

B. Company name approval is carried out by AICs at different levels.

Over 3000 AICs inclusing SAIC are authorities for company name approval

Company names should begin with geographical indications (county/ city/ province).

Company names are approved by the specific AIC at the same level.

Company names without geographical indications are approved by SAIC.

C. Examination is carried out before company names are approved for using. Composition Appropriateness Industrial description Similarity with prior names

a. Composition

Geographical indication + trade name + industrial description + form of organization =a company name

E.g.

Qingdao Haier electronic appliance co. Ltd.

Geographical indication

Trade name

Industrial description

Form of organization

b. Appropriateness

Not Against social order Deceiving or misleading Other inappropriateness

c. Industrial description

Standard for classification of industries in national economy

Scope of business

d. Similarity with prior names

Geographical indication + trade name + industrial description + form of organization =a company name

Names with different geographical indications are not similar names.

Similar names are searched within the jurisdiction of each AIC.

e.g.

Shandong sunshine advertising co. Ltd.

Vs.

Beijing sunshine advertisement co. Ltd.

not similar names.

II. Major problem

Trademarks Vs. trade names

Reasons

Not protected as prior right Different registration system

Trademarks – uniform

Company name – AICs at different levels

III. Suggested solution

Reduce name approval authorities to provincial AICs.

Thank you