Which of the following(s) could be or is a real company name for a Chinese Mainland company?
- PRD Group Limited
- 芬中營運有限公司
- Guangzhou Minshi Trading Limited
- 我喜欢绿色的猫和狗
- Zhege (China) Limited
- 广州刘克贸易有限公司
Answering correctly does not require knowing all the companies in the world or even in China, nor does it require peeking at a business registry.
Mainland China is that part of China that is not Hong Kong, Macao, or Taiwan, which have their own laws, authorities, etc.
Name of a Chinese Company
The names of Chinese companies follow a specific pattern and often reveal more than the names of Western companies.
Every Chinese company name contains:
- Place of registration: Most commonly it is a city, but for larger companies it can be a province, and for really large and/or state-owned companies, the place of registration is stated as China, meaning the central government level. The place of registration in the name is determined by where the company is registered, so if a company is registered in Guangzhou, for example, that is where it is located. If a company is small but states “China” as its place of registration in its name, that name is most likely not genuine.
- Actual name component: The only part the company can freely decide is the actual “name” part of the company name. Assuming that the name is available. Common and good names include Mega, Lucky, Grand, Victorious, and other positive expressions.
- Line of business (Industry): The company name mentions the primary line of business based on its registered industry. For example: import and export, consulting, hotel, etc.
- Company form (Entity type): At the end of the company name is the entity type, which is most commonly translated into English as a limited company (Co., Ltd.).
Oh, by the way. A Chinese company’s real name is written in Chinese characters and not in the Latin alphabet. China’s commercial register is entirely in Chinese and contains no Latin letters, unless a shareholder or key individual in the company is a foreigner.
Real and Fake Chinese Company Names
Now that we know what a Chinese company name looks like, let’s go through the options presented in the quiz at the beginning of the article.
1. PRD Group Limited: Written in the Latin alphabet, so it cannot be found in the Chinese commercial register. The name mentions a corporate structure and a geographical region “PRD” (Pearl River Delta), which is not, however, an administrative area.
2. 芬中營運有限公司: Alright! Chinese characters, so looking good! But no. This name cannot be found in the Chinese commercial register either, because the characters are Traditional and not Simplified, which are used in the Chinese commercial register. At the end of the company name is 有限公司, which is written the same in both Traditional and Simplified characters and means limited company, but if the name contains even one Traditional character, then the name is not the real name of a Chinese company. Nor does it even mention a place of registration. In fact, this name is the Chinese name of my Hong Kong company, China Operations Support Co., Ltd.
3. Guangzhou Minshi Trading Limited: The Latin alphabet is visible, so it cannot be found in the Chinese commercial register. Otherwise, all the necessary elements are present. This name is actually the English translation of a real Chinese company name, but it is not precise enough to uniquely identify the company. There can be multiple companies named Guangzhou Minshi Trading Limited in China, because the word “Minshi” can be written with numerous different Chinese characters.
4. 我喜欢绿色的猫和狗: Chinese characters, but otherwise complete nonsense.
5. Zhege (China) Limited: Latin alphabet, so it does not qualify. Besides, the line of business is missing.
6. 广州刘克贸易有限公司: Chinese characters OK, Guangzhou stated as the place of registration OK, name component Liu Ke OK, line of business foreign trade OK, and limited company at the end OK. Full points! This is/could be a real Chinese company name.
Why Knowing a Chinese Company’s Name Is Important?
This is a topic for the next article, but identifying a business partner is extremely important everywhere. For example, if a party is not unambiguously identified in a contract, anyone can imagine how easy it will be to enforce such an agreement later.
A vast number of Finnish companies buying goods from China do not really know who they are actually buying from. Frankly speaking, this terrifies me. The situation does not have to be this way, because PRD Group offers sourcing services in China for this.
