Setting up a Wholly Foreign Owned Enterprise (WFOE) in China can be a challenging process, and one important step is choosing an appropriate name for the WFOE company. The name should follow specific Chinese laws and policies to ensure it is approved by the relevant authorities. In this article, we will discuss the key factors to consider when choosing a name for your WFOE in China.
#1:
The name for WFOE should reflect the nature of the business and the industry in which it operates. For example, if the company is involved in technology, consider incorporating words like “innovation” or “tech” into the name.
#2:
The name must include the location of registration, the business activity, and end with an appropriate abbreviation for the company type (e.g. Co., Ltd).
#3:
In China, the Chinese version of the company name is considered the primary name, while the English name is supplementary and typically only appears on the company’s official seal and banking system.
#4: How to choose the Chinese name?
To increase the likelihood of the Chinese version of the WFOE name being accepted, it is advisable to use similar-sounding characters to the English version. While translating the name with the same meaning may seem like a good option, it’s important to note that some characters may have vulgar or improper connotations, or they may already be in use due to their popularity. This could result in rejection of the name. Opting for similar-sounding characters with no particular meaning can improve the chances of approval.
Example #1: Trading company (import/export)
Shanghai Silk Road International Trading Co., LTD
This English name carries:
Place of registration: Shanghai,
Chosen name: Silk Road,
Business Scope: International Trading, and
Company Type abbreviation: Co., LTD.
But it only appears on the company’s official seal and banking system.
Therefore, the primary name will be the Chinese name that we chose following the above requirements: 上海司可国际贸易有限公司 (Pinyin: Shànghǎi sī kě guójì màoyì yǒuxiàn gōngsī), i.e. Chinese name also carries the required elements mentioned above.
Chinese characters: 司可 (sī kě ) do not mean anything particular, but they sound like “Silk Road”.
If we try to register the direct translation of “Silk Road”, it will be rejected 100 percent, because one can assume with certainty that the name “Silk Road” has already been registered – it’s too popular and common to be left available.
Example #2: Consulting Company
Shanghai Silk Road Business Consulting Co., LTD
The primary name will be: 上海司可商务咨询有限公司 (Pinyin: shànghǎi sī kě shāngwù zīxún yǒuxiàn gōngsī)
Other variation: To accommodate clients who prefer not to write the place of registration at the forefront of the company name, we suggest placing it within parentheses immediately after the chosen name, for e.g.:
XXX (Shanghai) International Trading Co., LTD: Silk Road (Shanghai) International Trading Co., LTD
XXX (Shanghai) Business Consulting Co., LTD: Silk Road (Shanghai) Business Consulting Co., LTD
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