Premier Li Keqiang of the State Council recently signed an order of the State Council to promulgate the revised "Regulations on the Administration of Enterprise Name Registration" (hereinafter referred to as the "Regulations"), which will come into effect on March 1, 2021.

The Party Central Committee and the State Council attach great importance to deepening the reform of "delegation, management, and service" and optimizing the business environment. The reform of the enterprise name registration management system is an important task for optimizing the business environment, which is conducive to improving the convenience of starting a business, reducing the cost of starting a business, and stimulating market vitality. The “Regulations” implement the deployment requirements of the Party Central Committee and the State Council on deepening the reform of “delegating control and servicing” and optimizing the business environment, fully respect the right of enterprises to independently choose business names, further release enterprise name resources, simplify the enterprise name registration process, and reduce the start-up costs of enterprises, strengthen supervision during and after the event, safeguard the legitimate rights and interests of enterprises and good market order, and ensure that the reform of the enterprise name registration management system is open, accessible, and well managed.　

There are 26 articles in the "Regulations on the Administration of Enterprise Name Registration", and the main contents include:

The first is to establish an independent declaration system for enterprise names, clarify the responsibilities of the enterprise registration authority, and clarify the specific requirements for the independent declaration of enterprise names. Applicants can submit relevant information and materials through the enterprise name declaration system or at the service window of the enterprise registration authority to inquire, compare and screen the proposed name, and select a name that meets the requirements. The applicant shall promise to bear legal responsibility in accordance with the law if their business name is similar to the name of another person’s business and infringes on the legal rights of others.

The second is to improve the basic norms for corporate names. The "Regulations" improve the basic elements and composition specifications of enterprise names, refine the prohibitive requirements for enterprise names, and clarify the registration rules for foreign-invested enterprises, enterprise branches, and enterprise group names.

The third is to establish a mechanism for handling enterprise name disputes. If the enterprise believes that other enterprise names infringe on the legitimate rights and interests of the enterprise name, it can file a lawsuit with the people’s court or request the enterprise registration authority that registered the suspected infringing enterprise; after the enterprise registration authority accepts the application, it can conduct mediation. If the mediation fails, the enterprise registration authority Administrative rulings should be made within the prescribed time limit.

The fourth is to strengthen supervision during and after the event. When the enterprise registration authority discovers that the name of the enterprise does not meet the requirements when handling the enterprise registration, it shall not register and explain the reasons in writing; if it finds that the name of the registered enterprise does not meet the requirements, it shall promptly correct it. If other institutions or individuals believe that the registered enterprise name does not meet the requirements, they may request the enterprise registration authority to correct it. Anyone who uses the name of an enterprise to conduct an unfair competition or other acts shall be dealt with in accordance with the provisions of relevant laws and administrative regulations. If the people’s court or the enterprise registration authority determines that the use of the enterprise name should be stopped in accordance with the law, the enterprise shall complete the change registration within the prescribed time limit. If it fails to complete the registration within the specified time limit, the enterprise registration authority will include it in the list of abnormal operations.