Company names in China: New rules apply
China has recently revised its regulations on company names. The new circular introduces updated requirements on the structure and composition of company names, alongside separate rules on filing procedures and name comparison. The Ecovis experts explain the essential naming requirements.
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Mandatory structure of company names
Under Chinese law, a company name must consist of standardised Chinese characters. Foreign scripts, pinyin, letters, Arabic numerals, and non-standard or traditional characters are generally prohibited unless expressly permitted.
Names must also follow a fixed order:
- administrative region + trade name (字号) + industry description + legal form
This structure is mandatory unless special statutory exceptions apply. The name must be truthful, lawful, and should not mislead the public. The administrative region needs to correspond to the company’s actual place of registration.
The trade name (字号)
The trade name is the most distinctive element of the company name. It must contain at least two Chinese characters and may not consist of administrative divisions, industry terms, or legal forms. It must not violate laws, public order, or mislead the public. In practice, the trade name is central to the official comparison process for identical or similar names.
We check whether your company name complies with all legal requirements in China.
Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany
Industry description and legal form
The industry description is required to reflect the company’s principal business activity. If the main business changes, the company name must be amended accordingly.
The legal form stated in the name needs to correspond to the actual corporate structure, such as limited liability company, joint stock company, partnership, or sole proprietorship. Generic terms such as “centre” or “institute” cannot replace a legally recognised corporate form.
Use of “group” (集团)
A company may use the designation “group” only if it controls at least three legal entities and completes the required registration. The group name must remain consistent with the parent company’s administrative region, trade name, and industry description.
Foreign-invested enterprises
Foreign-invested enterprises may include “(China)” in their company name. The trade name must correspond to the foreign investor’s name or its Chinese translation.
The revised rules strengthen transparency and legal certainty in China’s company registration system. Careful review of a proposed company name is essential when establishing or restructuring a business in China.
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