Page 16 - The South China Business Journal
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PTH
Streamlining company Naming your company more complicated with the new
registration restrictions. Xu warns that “Based
The new guidelines underscore the on China’s new regulations on
While the new guidelines add intricacies of naming a company in naming enterprises, there is a
a variety of rules to company China - which foreign businesses find possibility that foreign companies
naming in China, the SAIC most especially challenging. Just as Chinese with puns, cultural references, or
likely designed them to filter out companies translating their names religious undertones, among other
egregious and politically sensitive literally into English can find their features, could have their names
names, rather than to strictly brands sounding awkward or in some rejected during the registration
regulate the naming process. In cases offensive, foreign companies process. Getting approval will
addition to eliminating duplicate opting for literal translations can run depend on the extent of their
names and intellectual property into similar situations. compliance with rules, the existence
infringers, the guidelines aim to of companies with similar names,
limit the potential for company Although a direct translation can and the discretion of local
names that authorities may find sound innocent on the surface, a government authorities.”
embarrassing to China. name might unintentionally be
associated with an offensive or Further, even if the local branch
China seems determined to absurd word or phrase, given the approves a name, authorities could
save face linguistically and similarities in Chinese characters, review it again in the future. Xu
architecturally as well. Earlier this tones, or cultural symbols. For continues, “Any organization or
year, authorities released new example, the French auto company individual who thinks a registered
standards for the use of English Peugeot’s Chinese name, Biaozhi, enterprise name is inappropriate
translations on public signage in an can sound similar to the word for may request the registration
attempt to curb China’s infamous prostitute (Biaozi). authorities to correct it. As
“Chinglish” mistranslations. Last such, a strange, controversial, or
year, authorities also banned Many foreign companies localizing provocative company name might
the construction of “bizarre” their products to China strive for be problematic for businesses.”
buildings after both domestic and a name that sounds phonetically
international observers derided similar to the original, but also Beyond complying with the new
numerous questionably designed captures the essence of the product. enterprise naming restrictions,
buildings across China. One well-known example is the soft preexisting laws stipulate that a
drink Coca-Cola, whose Chinese name must consist of more than
Allan Xu, Business Advisory name Kekoukele means “Tasty Fun”. two Chinese characters. The SAIC
Services Manager at Dezan Shira & The home sharing company Airbnb does not accept names containing
Associates, notes that the new rules tried to use this strategy earlier this foreign languages or alphabets,
are part of a larger effort to manage year when announcing its Chinese as well as numbers and special
China’s sprawling private sector. name, Aibiying (“Welcome each characters. Before submitting the
“Every day, more than 10,000 new other with love”), but Chinese application, businesses can conduct
companies get registered in China, netizens ridiculed it, saying the a preliminary check through the
resulting in a total amount of about name was hard to pronounce and local Enterprise Name Query System
30 million nationwide. This huge sounded like a sex product. to identify similar company names
number makes it difficult for new that are already registered. Further,
companies to find a name that is not Navigating the various businesses should prepare at least five
similar to any of the existing ones.” considerations of naming a potential names for AIC approval.
company in China just got
To prevent duplicate names, Naming companies in China is a
last year the SAIC established the Article by China Briefing. delicate art, and foreign entrants
“Enterprise Name Query System”, now have additional considerations
which enables companies to check Since its establishment in 1992, Dezan Shira when developing their local name.
their prepared names online. & Associates has been guiding foreign clients Foreign businesses looking to
The SAIC also recently issued the through Asia’s complex regulatory environment develop a Chinese company name
Rules for Comparison of Similarity and assisting them with all aspects of legal, that both captures their brand
between Enterprise Names, which accounting, tax, internal control, HR, payroll, and complies with government
also seeks to streamline the naming and audit matters. As a full-service consultancy regulations should enlist professional
process by limiting duplicate and with operational offices across China, Hong Kong, consultation services to successfully
similar sounding names. India, and ASEAN, we are your reliable partner for localize their name to China’s unique
business expansion in this region and beyond. business environment.■
For inquiries, please email us at info@dezshira.com.
Further information about our firm can be found at:
www.dezshira.com.
14 AMCHAM SOUTH CHINA
Streamlining company Naming your company more complicated with the new
registration restrictions. Xu warns that “Based
The new guidelines underscore the on China’s new regulations on
While the new guidelines add intricacies of naming a company in naming enterprises, there is a
a variety of rules to company China - which foreign businesses find possibility that foreign companies
naming in China, the SAIC most especially challenging. Just as Chinese with puns, cultural references, or
likely designed them to filter out companies translating their names religious undertones, among other
egregious and politically sensitive literally into English can find their features, could have their names
names, rather than to strictly brands sounding awkward or in some rejected during the registration
regulate the naming process. In cases offensive, foreign companies process. Getting approval will
addition to eliminating duplicate opting for literal translations can run depend on the extent of their
names and intellectual property into similar situations. compliance with rules, the existence
infringers, the guidelines aim to of companies with similar names,
limit the potential for company Although a direct translation can and the discretion of local
names that authorities may find sound innocent on the surface, a government authorities.”
embarrassing to China. name might unintentionally be
associated with an offensive or Further, even if the local branch
China seems determined to absurd word or phrase, given the approves a name, authorities could
save face linguistically and similarities in Chinese characters, review it again in the future. Xu
architecturally as well. Earlier this tones, or cultural symbols. For continues, “Any organization or
year, authorities released new example, the French auto company individual who thinks a registered
standards for the use of English Peugeot’s Chinese name, Biaozhi, enterprise name is inappropriate
translations on public signage in an can sound similar to the word for may request the registration
attempt to curb China’s infamous prostitute (Biaozi). authorities to correct it. As
“Chinglish” mistranslations. Last such, a strange, controversial, or
year, authorities also banned Many foreign companies localizing provocative company name might
the construction of “bizarre” their products to China strive for be problematic for businesses.”
buildings after both domestic and a name that sounds phonetically
international observers derided similar to the original, but also Beyond complying with the new
numerous questionably designed captures the essence of the product. enterprise naming restrictions,
buildings across China. One well-known example is the soft preexisting laws stipulate that a
drink Coca-Cola, whose Chinese name must consist of more than
Allan Xu, Business Advisory name Kekoukele means “Tasty Fun”. two Chinese characters. The SAIC
Services Manager at Dezan Shira & The home sharing company Airbnb does not accept names containing
Associates, notes that the new rules tried to use this strategy earlier this foreign languages or alphabets,
are part of a larger effort to manage year when announcing its Chinese as well as numbers and special
China’s sprawling private sector. name, Aibiying (“Welcome each characters. Before submitting the
“Every day, more than 10,000 new other with love”), but Chinese application, businesses can conduct
companies get registered in China, netizens ridiculed it, saying the a preliminary check through the
resulting in a total amount of about name was hard to pronounce and local Enterprise Name Query System
30 million nationwide. This huge sounded like a sex product. to identify similar company names
number makes it difficult for new that are already registered. Further,
companies to find a name that is not Navigating the various businesses should prepare at least five
similar to any of the existing ones.” considerations of naming a potential names for AIC approval.
company in China just got
To prevent duplicate names, Naming companies in China is a
last year the SAIC established the Article by China Briefing. delicate art, and foreign entrants
“Enterprise Name Query System”, now have additional considerations
which enables companies to check Since its establishment in 1992, Dezan Shira when developing their local name.
their prepared names online. & Associates has been guiding foreign clients Foreign businesses looking to
The SAIC also recently issued the through Asia’s complex regulatory environment develop a Chinese company name
Rules for Comparison of Similarity and assisting them with all aspects of legal, that both captures their brand
between Enterprise Names, which accounting, tax, internal control, HR, payroll, and complies with government
also seeks to streamline the naming and audit matters. As a full-service consultancy regulations should enlist professional
process by limiting duplicate and with operational offices across China, Hong Kong, consultation services to successfully
similar sounding names. India, and ASEAN, we are your reliable partner for localize their name to China’s unique
business expansion in this region and beyond. business environment.■
For inquiries, please email us at info@dezshira.com.
Further information about our firm can be found at:
www.dezshira.com.
14 AMCHAM SOUTH CHINA
