According to Xinhua News Agency, Premier Li Keqiang signed a State Council Order a few days ago to announce 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 "delegating power, regulating services, and optimizing the business environment. The enterprise name registration management system’s reform 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 decentralization, regulation and service, and optimizing the business environment, fully respect the right of enterprises to independently choose business names, further release business name resources, simplify the business name registration process, and reduce the costs to start businesses, strengthen supervision during and afterwards, safeguard the legitimate rights and interests of enterprises and maintain 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", and the main contents include: First, establish an independent enterprise name declaration system, clarify the duties of the enterprise registration authority, and clarify the specific requirements for independent enterprise name declaration. Applicants can submit relevant information and materials through the enterprise name declaration system or at the enterprise registration authority’s service window to inquire, compare and screen the proposed name, and select a name that meets the requirements. The applicant shall undertake to bear legal responsibility according to the law if its business name is similar to other’s business name and infringes on others’ legal rights.
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 an enterprise name dispute resolution mechanism. 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 finds that the enterprise name does not meet the requirements when handling the enterprise registration, it shall not register and explain the reasons in writing; if the registered enterprise name does not meet the requirements, it shall promptly correct it. If other units 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 carry out acts such as unfair competition shall be dealt with in accordance with relevant laws and administrative regulations. If the people's court or the enterprise registration authority determines according to law that the use of an enterprise name should be discontinued, the enterprise shall register the change within the prescribed time limit. If it fails to do so within the prescribed time limit, the enterprise registration authority shall list it in the directory of abnormal operation.
