Businesses that operate in China and Hong Kong often utilize what is known as a company chop – a version of the signature often used by Western countries to give approval for operational decisions and financial actions.
In this article, we will break down the basics of company chop, from what chop is to how you can begin the process to apply for one with the help of Fastlane. Read below to learn:
1. What Are Company Chop?
Across many parts of China and Hong Kong, companies will utilize a seal or stamp known as a company chop to conduct legal business. In some cases, the use of a company chop is mandatory to complete transactions or decisions. The company chop or seal acts as the physical representative and legal authority for the company to conduct business in other countries across the globe.
2. When Do I Need A Company Chop?
When conducting business in China or Hong Kong, you will often need a company chop in order to ratify documents as legally binding. This means that a company that desires to do business with other entities in these countries – as well as those outside the country – will need the legal power of their chop in order to finalize documents, decisions, and transactions. Knowing which company chop to obtain, and how to obtain them, is essential for seeing your business succeed.
3. What Are The Main Types Of Company Chop?
Official Company Chop
The main chop that an entity will register and obtain is known as the “company chop.” The company chop is mandatory any time that a document is signed that requires legal authority. This may include actions such as changing the company’s name, scope of business, opening financial accounts, and any other large-scale actions that a company may take in the course of business.
A company’s official company chop can be used in a variety of instances, and holds the highest level of authority in the company. All official letters, documents, contracts, and other legal documentation will be stamped with the company chop – unless a secondary specific chop is used.
To allow a company to open and manage financial accounts and disburse funds, a financial chop may be used. This chop is mandatory for many financial actions on behalf of the company, but in many instances the company chop can be used as well. This chop must be registered with the financial institution that the actions are taken with.
If you need to sign and validate contracts with other parties, a contract chop can be used. The contract chop has less authority than the company’s main chops, but does allow for individuals to make agreements with others on behalf of the company in contracting.
In many cases, the issuing of invoices and tax receipts may require the use of an invoice chop. This chop is used to declare that a purchase is a business expense for the company.
A newer version of a company chop is an electronic chop. This chop is utilized in online, digital transactions. As of 2019, the Electronic Signature Law of the PRC allows for electronic chops to have the same legal power as physical chops.
4. How Can I Register & Obtain A Company Chop?
You will need to partner with a corporate expert in the country in order to obtain the right paperwork for filing for a company chop, and in some cases you will first need a chop in order to finalize the registration of one.
To register and obtain a chop, you will need to contact a chop maker and provide the necessary business information and documentation. Once complete, your chop maker will create a unique and specialized company chop that will apply only to your company. The company chop will then need to be kept in the secure hands of the company’s trusted legal advisor or head decision maker.
How Can FastLane Help to Register A Company Chop?
To ensure that you successfully obtain a company chop and any other chops that you need, you should partner with a firm that specializes in helping companies obtain company chops quickly. At FastLane, our team of experts have years of experience helping companies obtain their official company chop, as well as any other chops that they may find useful for their day-to-day business operations.
To learn more, contact FastLane today to set up a free consultation.