Company Name Rules in Japan: Romaji, Symbols and Trademark Risks

A Japanese company name, or trade name (商号, shogo), may use Latin letters (romaji), Arabic numerals and six symbols in addition to kanji, hiragana and katakana. It must always contain the characters indicating the type of company, such as 株式会社 (kabushiki kaisha) or 合同会社 (godo kaisha). A name can be registered as long as no company with the same name exists at the same address, but conflicts with other companies’ rights, such as trademarks, must be checked separately.

Basic rules for trade names

Under the Companies Act, a company’s name is its trade name. The name must also include characters corresponding to the type of company: 株式会社 for a kabushiki kaisha (KK) and 合同会社 for a godo kaisha (GK).

• 株式会社 may come before or after the name (for example, 株式会社ABC or ABC株式会社).
• 株式会社 cannot be replaced with “K.K.”, “Co., Ltd.”, “Inc.” or similar.
• Characters that could cause the company to be mistaken for another type of company cannot be used. A godo kaisha cannot call itself 株式会社.

If you have not yet decided on the company form, see also Kabushiki kaisha vs godo kaisha.

Requirements for using Latin letters, numerals and symbols

A 2002 amendment to the Commercial Registration Regulations allowed Latin letters and other characters in trade names. The permitted characters and symbols are as follows.

Restrictions on where symbols appear

Symbols cannot be used at the beginning or end of a trade name. As an exception, a period indicating an abbreviation may be used at the end, as in 株式会社A.B.C.

No symbols other than the six above may be used. Trade names containing exclamation marks, question marks, at signs, hash signs, slashes, brackets and the like cannot be registered, so treat them separately from logos and brand styling.

Chinese character forms and foreign spellings

Simplified characters used in mainland China and character forms used in Hong Kong sometimes include characters that cannot be used in Japanese registration. In that case, consider replacing them with Japanese character forms or using a romanized name.

Furigana reading

Since 12 March 2018, registration applications have included a field for the furigana (phonetic reading) of the trade name. Symbols cannot be given as furigana, so “＆” is written in katakana, for example as アンド (“and”).

Rules on identical and similar trade names

A company cannot be registered if a company with the same trade name is already registered at the same head office location (Article 27 of the Commercial Registration Act). Conversely, if the address differs, registration itself is possible even with the same trade name.

Before the Companies Act took effect in 2006, a “similar trade name rule” prohibited registering a name confusingly similar to that of another company carrying on the same business in the same municipality. This rule was abolished when the Companies Act took effect.

Registered does not always mean usable

Registration does not examine conflicts with other companies’ rights. Note the following laws.

• Companies Act, Article 8: Using, for an improper purpose, a name likely to be mistaken for another company is prohibited. A company whose interests are infringed can demand that the use stop.
• Unfair Competition Prevention Act: Using a name confusingly similar to another company’s well-known name or indication may lead to an injunction or damages.
• Trademark Act: Using a name identical or similar to another company’s registered trademark for identical or similar goods or services may infringe the trademark right.

Protecting your own trade name

Registering a trade name alone does not prevent other companies from using the same name at a different address. If you want exclusive use of a name, trademark registration is an effective means. Also secure the domain name early and keep records showing when you began using the name.

If you receive a warning from another company demanding that you stop using a name, do not comply immediately or ignore it; consult a patent attorney (弁理士) or an attorney (弁護士) and decide how to respond.

Prohibited and sensitive words

• Some words, such as 銀行 (bank), 保険 (insurance) and 信託 (trust), may by law not be used by companies without the relevant license for that industry.
• Words denoting part of a company, such as 支店 (branch) or 事業部 (division), are regarded as not usable in a trade name.
• Words contrary to public order and morals cannot be used.

Many Japanese companies use the same name as their overseas parent. Even then, it is prudent to check whether the parent’s name is registered as a trademark in Japan.

Acceptable and unacceptable examples

Trade names versus trademarks

Registering a trade name does not give you trademark rights. For names you will use as a brand, also consider trademark registration in Japan. Registered trademarks can be searched free of charge on J-PlatPat, the database provided through the Japan Patent Office.

Checks before deciding on a trade name

1. Decide the company type and prepare several candidates that include 株式会社 or the equivalent.
2. Check that they comply with the rules on permitted characters and symbols.
3. Check the registry for any company with the same trade name at the planned head office address. You can also search companies by name on the National Tax Agency’s Corporate Number Publication Site.
4. Search J-PlatPat for identical or similar trademarks that are registered or pending.
5. Check that the domain name and social media account names are available.
6. Set out the trade name in the articles of incorporation and, if needed, also specify the English rendering.

Points for foreign companies choosing a trade name

• Adding “Japan” or ジャパン to the parent company’s name is common and makes the group relationship clear.
• Romanized trade names can be hard to read. Showing the katakana reading in company brochures and on the website helps.
• In bank transfers, the payee’s name is generally shown in katakana. Choose a reading that business partners can easily verify.
• If you plan to set up several Japanese companies within the group, agree naming conventions in advance.

The English rendering (for example, ABC Japan Co., Ltd.) is not registered. Setting it out in the articles of incorporation lets you standardize the form used in contracts and invoices.

A trade name can be changed after incorporation. For a kabushiki kaisha, the articles of incorporation are amended by special resolution of the general meeting of shareholders and the change is registered. The registration and license tax is 30,000 yen. Changing the trade name does not change the corporate number, but you must notify banks, the tax office, business partners and others. If you hold permits or licenses, change notifications for those may also be required. Signs, business cards and contracts will also need updating, so it is important to check thoroughly at the outset. The overall incorporation process is explained in How foreign nationals and companies set up a company in Japan.

Summary

A trade name must include characters indicating the company type. Latin letters, numerals and six symbols may be used, but there are restrictions on where symbols appear. A name can be registered if the same name does not exist at the same address, but you need to check conflicts with trademarks and other companies’ names yourself.

Working with partner judicial scriveners (司法書士) and patent attorneys (弁理士), TIMOA supports you from checking trade name candidates and drafting the articles of incorporation through to trademark searches and applications. For details, see our Japan Entry & Company Setup page.