The State Council has issued the Provision on Administration of Enterprise Name Registration on December 28th, 2020, this new provision lists the specific regulations for enterprise name registration, aiming to protect the rights of enterprises and meanwhile improve the business environment. Details as follows:
First thing is to establish a new system for independent declaration for enterprise name and clearly regulate the relevant requirements. The applicant could file relative information or documents, search, compare and filter the proposed name and also select the name that meets the requirements through the Enterprise Name Declaration System or at the service counter of the enterprise registration authority. The applicant shall promise that if the legal right of other person or enterprise is violated due to the name similarity between the applicant and the other party, the applicant would take the legal responsibility according to law.
It’s clarified that, the enterprise name shall be composed of name of the administrative area, title, industry field or business characteristics, and organization form. For those enterprises whose business operations are cross-provinces, name of the administration area could be not included. And for those enterprises whose business operations are cross-industries and comprehensive, industry field or business characteristics could be not included.
According to the requirements, if there is term such as “China”, “Chinese”, “Central”, “National” or “State” in the enterprise name, it shall be strictly examined and report for the approval from the State Council. Those terms above shall be limited term of the industry. Foreign-funded single shareholder or interest holding enterprises under the title of their foreign investor may use the term “China” in their enterprise name.
There are several cases which are prohibited for enterprise name which are: 1) damage to the dignity and interests of the State; 2) damage to public interest or public order; 3) use or disguised use of the names, abbreviations, specific appellations and military force numbers of political party, government and military; 4) use of names, abbreviations and specific appellations of foreign country (region) and international organization; 5) obscenity, pornography, gambling, superstition, terror and violence; 6) ethnic, racial, religious, gender discrimination; 7) disobeying public order and good customs or possibly other adverse effects; 8) content that may be deceived or misunderstood by the public.
If any dispute on enterprise name occurs, it could be turned to the dispute dissolving mechanism. When the enterprise found the name of another enterprise infringes upon the lawful right and interest of their own, it could be brought into a suit to the court or ask the enterprise registration authority which registered for the suspected infringing enterprise to handle the case. If mediation fails, the enterprise registration authority shall make an administrative decision within the prescribed time limit.
Other unit or individual who considers the registered enterprise name is not compliant with the provision may ask the enterprise registration authority to rectify. If the court or the enterprise registration authority determines that the use of enterprise name should be stopped, the enterprise shall apply for registration to change within the prescribed time limit. If it’s overdue, the enterprise registration authority shall put this enterprise into the abnormal list of operations.
This provision would be effective from the date of March 1st, 2021.
If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=15809
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Mr. Mike Chang (Partner)