Setting up
Sole proprietorship business name rules in Hong Kong
The IRD registers a Chinese name, an English name, or both. It refuses names that suggest limited liability or a Government link that does not exist, so no “Limited” for a sole proprietor.
At a glance
- Who checks the name
- Inland Revenue Department, not the Registry
- Name options
- Chinese only, English only, or both
- Chinese name
- May include English letters, not English words
- Refused
- Suggests limited liability the business lacks
- Also refused
- A Government link that does not exist
A sole proprietorship’s name is checked by the Inland Revenue Department (IRD) when you apply for business registration, not by the Companies Registry. The IRD lets you register a Chinese name, an English name, or both. It will not register a name that suggests limited liability when the business does not have it, a name that suggests a Government or public body connection that does not exist, or (for an incorporated business) a name that suggests a different incorporated name. Those rules are on the IRD’sbusiness registration page. The upshot for a sole proprietor: no “Limited” in any form.
Your three choices
The IRD asks you to take one of three options for the business name:
- A Chinese name only
- An English name only
- Both a Chinese name and an English name
A Chinese name may include English letters but not English words. For illustration only: a Chinese name with a pair of initials such as “AB” in it fits that wording, while a Chinese name with the English word “Studio” in it does not. If you want an English word in the name, register it as the English name and keep the Chinese name in Chinese.
Names the IRD will not register
The IRD’s page lists three kinds of name that must not be used:
- A name which suggests that the business is incorporated with limited liability when it is not
- Where the business is incorporated with limited liability, a name which suggests that it is incorporated under a different name
- A name which suggests a connection with the Government or any public body when no such connection exists or has existed
A sole proprietorship is not incorporated, so the first rule is the one that bites. “Limited” and “Ltd” in English, and 有限公司 in Chinese, are the clearest examples of words that suggest limited liability. Those are the endings a Hong Kong limited company uses. If you are unsure whether another word reads that way, ask the IRD before you print signs or invoices.
The third rule catches names that read as official. A name that implies you are a Government department, or linked to a public body, is refused unless that connection is real or has been real in the past.
Business name versus company name
A limited company’s name is a separate system, run by the Companies Registry. ItsGuideline on Registration of Company Namesandcompany-name FAQset the rules on that side. The two systems differ in the places people most often trip up:
| Point | Sole proprietorship business name (IRD) | Limited company name (Companies Registry) |
|---|---|---|
| Languages | Chinese only, English only, or both | English, Chinese, or both |
| Mixing scripts | A Chinese name may include English letters, not English words | One name may not combine English words or letters with Chinese characters |
| Ending | Nothing that suggests limited liability | English name must end with “Limited”; Chinese name with 有限公司 |
| Same as an existing name | Not one of the refusal grounds the IRD lists | Refused if the same as a name on the Index of Company Names |
| Other refusals | A Government or public-body connection that does not exist | Same as a body set up under an Ordinance; use would be a criminal offence; offensive or contrary to the public interest |
The full company-side rules, including the words that need the Registrar’s approval, are onHong Kong company name rules.
If someone else already uses the name
The Companies Registry refuses a company name that is the same as one already on its Index. The IRD’s published list for business names has no matching rule: none of its three refusal grounds is about a name another business already trades under. Read that the right way round. A business registration certificate in your name records that you registered it. It is not a ruling that nobody else has a better claim to the name.
Before you commit to a name, search it. The Companies Registry’se-Services Portalshows company names on its register, and an ordinary web search shows who is trading under it. If a name is close to another firm’s brand, take advice from a lawyer before you spend money on it.
Picking a name: a short checklist
- Decide whether you need a Chinese name, an English name, or both.
- Strip out “Limited”, “Ltd”, 有限公司 and anything else that reads as limited liability.
- Remove words that suggest a Government or public-body link you do not have.
- In the Chinese name, keep any English to letters, not words.
- Search the Companies Registry and the web for the same or a similar name.
- Register the business with the IRD. The steps are onhow to register a sole proprietorship.
If you want “Limited” in the name
Then you want a limited company, not a sole proprietorship. A Hong Kong limited company’s English name must end with “Limited” and its Chinese name with 有限公司, and it is registered at the Companies Registry rather than only at the IRD. The trade-offs between the two structures are onsole proprietorship or a limited company. If you decide to incorporate,company formation firmsare listed in our directory. None of this is legal advice. The IRD decides whether your business name is registered.
Questions people ask
Can a sole proprietorship use “Limited” or “Ltd” in its name?
No. The IRD will not register a name which suggests that the business is incorporated with limited liability when it is not. A sole proprietorship is not incorporated, so “Limited”, “Ltd” and 有限公司 are out. Those endings belong to limited companies registered at the Companies Registry.
Can I mix English and Chinese in one business name?
You can register a Chinese name only, an English name only, or both. A Chinese name may include English letters but not English words. If you want an English word, put it in the English name.
Will the IRD refuse a name another business already uses?
Being the same as another business’s name is not one of the three refusal grounds the IRD publishes. The Companies Registry does refuse a company name that is the same as one on its Index. A business registration certificate is therefore not a ruling that the name is free for you to use, so search before you commit.
Can my business name suggest a link with the Government?
Only if the connection is real. The IRD will not register a name which suggests a connection with the Government or any public body when no such connection exists or has existed.
Are business name rules the same as company name rules?
No. Business names are an IRD matter. Company names follow the Companies Registry’s rules: an English name must end with “Limited”, a Chinese name with 有限公司, and one name may not combine English words or letters with Chinese characters.