Understanding Chinese company names is the first critical step in verifying business legitimacy. Unlike Western naming conventions, Chinese company names follow a strict structural formula mandated by law. This guide will decode each component and provide actionable verification methods.
The Anatomy of a Chinese Company Name
Chinese company names consist of four mandatory elements in this exact order:
- Administrative Division (行政区划)
Indicates the company’s registered location (province/city/county).
Example: “Beijing” in “Beijing Huawei Technologies Co., Ltd” - Trade Name (字号)
The unique identifier chosen by the company (2+ Chinese characters).
Example: “Huawei” in the above example - Industry (行业)
Describes primary business activities based on national classification.
Example: “Technologies” - Organizational Form (组织形式)
Legal structure (e.g., Co., Ltd, LLC).
Example: “Co., Ltd”
Why This Structure Matters for Verification
China’s Enterprise Name Registration and Administration Regulations enforce this standardized format to:
- Prevent deceptive naming practices
- Enable systematic government oversight
- Facilitate cross-regional business identification
Step-by-Step Verification Process
1. Validate the Administrative Division
- Cross-check with the claimed headquarters address
- Verify regional economic policies (some locations offer tax incentives that attract shell companies)
- Use our Official Enterprise Credit Report to confirm registration jurisdiction
2. Investigate the Trade Name
- Search for duplicate names via National Enterprise Credit Information Publicity System (gov.cn)
- Check for naming violations (e.g., prohibited terms like “China” or “National” without special approval)
- Verify trademark registration through CNIPA
3. Assess Industry Description Accuracy
- Compare stated industry with:
- Unified Social Credit Code (9th-10th digits indicate industry)
- Actual business scope in registration files
- Physical operations (when possible)
4. Confirm Organizational Form
Common valid forms include:
- 有限责任公司 (Limited Liability Company)
- 股份有限公司 (Joint Stock Limited Company)
- 分公司 (Branch Office)
Red flags:
- Mismatch between claimed form and capitalization
- Unregistered foreign entity designations (e.g., “Group” without approval)
Advanced Verification Techniques
Cross-Reference With Official Documents
Essential records to request:
- Business License (营业执照)
- Articles of Association (公司章程)
- Latest Annual Report (年度报告)
Pro tip: Our Professional Enterprise Credit Report consolidates these documents with verification.
Check Naming History
Chinese companies must disclose all name changes. Significant frequent changes may indicate:
- Ownership instability
- Regulatory violations
- Rebranding after negative publicity
International Considerations
For companies operating overseas:
- Verify name consistency across jurisdictions
- Check for Apostille certification of registration documents
- Confirm bilingual name registration with SAIC
Common Name-Related Scams
- Imposter Names
Slight variations of reputable brands (e.g., “Huawei Technologies” vs “Huavei Technologies”) - Geographic Misrepresentation
Using “Shanghai” or “Shenzhen” prefixes to appear more established - Industry Obfuscation
Tech-sounding names for non-tech companies to attract investors
Verification Tools and Resources
| Tool | Purpose | Access |
|---|---|---|
| National Enterprise Credit System | Basic registration check | |
| China Judgments Online | Litigation history | wenshu.court.gov.cn |
| CNIPA Database | Trademark conflicts | |
| Third-Party Reports | Comprehensive verification | ChinaBizInsight Reports |
When to Seek Professional Verification
Consider professional assistance when:
- Dealing with high-value transactions (>$50,000)
- The company operates across multiple provinces
- Discrepancies exist between claimed and registered information
- English-language documentation is insufficient
Our verification experts at ChinaBizInsight have helped clients uncover:
- 23% of checked companies had name discrepancies
- 17% falsely claimed provincial-level registration
- 9% used trademark-infringing trade names