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The procedures for changing the name of a company in China turns out to be quite complex, though it is far simpler, for example, than changing one’s business scope. Because a company’s name is displayed on several types of official documents (such as its business license, company chop and tax registration certificate), any changes to this information must be filed with each respective governing authority. It is crucial that companies duly prepare for each step in the process prior to filing an initial application, as deadlines at later steps are incurred by the completion of earlier ones. This article is to introduce the procedures of Shanghai WFOE company name change for your reference.
Step1: Filing the company name change with the local State Administration for Industry and Commerce (SAIC) at which the company was originally registered
Similar to an initial application for name pre-approval, a written application for a change of company name should contain at least 3 proposed names (including a preferred one) in compliance with “Measures for Implementing the Administration of Enterprise Name Registration” effective from June, 2004. If the first proposed name has already been registered by another company, then officials will approve one of the other proposed names.
Step 2: Filing an application with its original SAIC body of registration for a change of information on its business license.
Take note: Applications to do so must be submitted within 30 days of the change in company registered information as completed in Step 1.
A decision will be issued by the authorities within 30 days of the receipt of an application. The related fee is subject to the determination of local SAIC. Failure to register a change in registered information can result in fines and an injunction to rectify the situation within a specified time limit.
Step 3: Updating other documents on which its name appears, including various types of chops.
The chops include Financial Chop, Company Chop, Customs Declaration Chop, etc.), which must be newly carved and registered with the company’s local Public Security Bureau.
Other documentation to be updated includes the company’s registered information with State Administration of Foreign Exchange (SAFE), the Finance Bureau and the Statistics Bureau, as well as its Customs registration, banking information, foreign trade operator registration with MOFCOM and its taxpayer registration.
Updating tax registration is quite complex, but is a crucial step in the overall process, as it affects the company’s ability to issue fapiaos (and thereby allow its customers to deduct input VAT).
Moreover, the company will have to make changes to all ongoing contracts with suppliers and clients. The related parties are not required to sign a new contract, however, but may instead sign an amendment to the original. The same applies to all labor contracts with employees, for which amendments should be signed by both the employer and employees.
As illustrated by the above, changing the name of a company in China is no easy task. Given the proper planning, however, it can be done. Depending on the number of documents needing to be updated, the overall process can carry on for months, excluding the time required for the company to prepare internal documents. For these and other reasons, companies are strongly advised to contract the expertise of an experienced services provider, such as the professional tax and legal advisory team of us.
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