To set-up a new China company, you will first need to reserve a name for the new company. Many people would think this is a simple thing, and should hardly be considered a step by itself. How hard could it be? Not as easy as you think.
The chosen name, specifically each word in the company name must meet the requirements of relevant rules and regulations for registering a company name. Generally speaking, a company name is composed of these elements: trade name, organizational form, industry or business operation characteristics and the name of the administrative area where the enterprise is located.
Except the first element, the other elements are easy to confirm. And the trade name shall be composed of two or more Chinese characters. Additionally there are specific content that should be avoided to be used in the name, including the name of any political party, any government or armed force agency, any people’s organization, any social organization or any military unit.
To meet the investing companies standard practice, some companies may want to add words like “group” “general” or “international.” There are specific requirements which must be meet by the company before such terms may be used.
If the preferred name has been registered by other companies already, the name cannot be used again and the investor will have to decide on another name for the new company. It is advisable therefore, before filing a name reservation form with the local Administration of Industry and Commerce (“AIC”), to prepare as many names as possible in case one or more of the top choices are taken. We recommend eight alternatives, though we have seen a situation in which 40 prospective names were submitted but all ad previously been registered.
After the names are prepared and the AIC officer has confirmed that the chosen name may be registered, a Company Name Reservation Notice will be issued within five business days. Only at this point can you be sure of your new company name.