Chinese Law Prof Blog

Editor: Donald C. Clarke
George Washington University Law School

Tuesday, June 23, 2009

Yet another barrier to entrepreneurship in China

I was talking the other day to a friend who is trying to get a small company registered in Beijing. Among the many roadblocks thrown up by the Beijing Administration of Industry and Commerce is this amazing (to me, anyway) one: she has to provide an explanation of why she chose the name she did for the company. While certain words and implications (for example, "China National ..." if you aren't a centrally-owned SOE, or cuss words) are understandably prohibited, her proposed name implicated none of these. It's just the interfering instincts of overly idle bureaucrats, as far as I can tell.

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That is how bureaucrats work in China. Process, though little by little, has been made in the past 20 years. It could be case that your friend will not be asked such a bizarre question when she registers another company in 2029.

Posted by: David | Jun 25, 2009 9:13:43 AM

Domestic company or WFOE? I've never heard of this...

ANSWER: Purely domestic company.

Posted by: Dan | Jun 26, 2009 4:23:30 PM

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