A company chop serves as a rubber seal, stamp, or imprint.
It is used to authenticate and validate official company documents, letters, deeds, certificates, and records, effectively operating as a signature.
Not mandatory in Hong Kong but beneficial for certain transactions. In jurisdictions where it is required, obtaining a chop involves providing business registration certificates, identification documents, application forms, and a company chop design.
While not necessary, using a company chop/stamp is recommended for ease when dealing with clients, customers, or government authorities.
Many businesses use a company chop stamp to validate contracts and official documents. But is it legally required in Hong Kong?
While some countries mandate the use of a company chop, Hong Kong does not require businesses to have one. Still, many companies find it useful for banking, contracts, and daily operations.
In this article, we’ll break down what a company chop is, when you need it, and how it compares to a common seal—so you can decide if your business should have one.
What Are Company Chops?
In Hong Kong, a company chop is normally a small round stamp in blue or red ink. It normally includes the company name in English and/or Chinese.
The company's registration number or business registration number may also appear on the stamp. However, this is not mandatory.
The term “company chop” refers to a rubber seal, stamp, or imprint. It is also recognized in other common law jurisdictions such as India, China, Australia, and Canada, to name a few.
Company Chop vs. Common Seal
Although a company chop and a common seal serve similar purposes, they differ in formality, material, and usage. Here’s a simple table to quickly see the key differences between a company chop and a common seal:
| Feature | Company Chop | Common Seal |
|---|---|---|
| Purpose | Used for day-to-day documents like contracts, invoices, and agreements | Traditionally used for highly formal documents like share certificates and legal deeds |
| Material & Application | Rubber stamp that uses ink to imprint company details | Metal embosser that presses company details into paper or wax |
| Legal Requirement | Not legally required but commonly used in business transactions | Previously required in Hong Kong but made optional in 2014 |
| Formality | Considered less formal but widely accepted | Considered more formal but rarely used today |
| Usage Today | Most businesses use a company chop for daily operations | Rarely used, unless a company prefers added formality |
What Is the Company Chop Stamp Used For?
The function of a company chop is a mix of Chinese and Western models, and it is very common in commercial and corporate use.
The company chop/stamp is used to authenticate and validate official company documents, letters, deeds, certificates, and records.
To put it simply, a company chop in Hong Kong operates as a signature. Due to the similar nature of a company chop and a signature, a company chop is not always required as a signature has the same effect.
However, some business transactions specifically require a company chop, such as:
- Opening a company bank account (the application form must be signed and chopped).
- Sponsoring an employee visa (requires both signature and chop).
Company chops have greater use and official value in Mainland China.
Company Chop in Hong Kong vs. in Mainland China
Hong Kong and Mainland China have different company chop rules because they follow separate legal systems. In Hong Kong, a company chop is optional, while in Mainland China, it is legally required for business operations.
Key differences between Hong Kong and Mainland China company Chops:
| Key Differences | Hong Kong Company Chops | Mainland China Company Chops |
|---|---|---|
| Legal Importance | Optional, mainly for formality | Required for contracts, bank transactions, and issuing invoices (fapiaos) |
| Government Registration | No registration required | Must be registered with the Public Security Bureau (PSB) and Administration for Industry and Commerce (AIC) |
| Usage in Transactions | Signatures are usually sufficient | Required to validate documents |
Hong Kong company chops are not valid in Mainland China. Since the two places have different legal systems, a Hong Kong company must get a separate Chinese company chop if doing business there.
Likewise, Mainland China company chop does not automatically work in Hong Kong. A Mainland business must follow Hong Kong’s rules and may need a separate Hong Kong company chop if required.
If you operate in both places, you need a separate company chop for each jurisdiction to avoid legal issues and delays.
Different Types of Company Chop Stamps
Hong Kong businesses typically use one of two types:
1. Round Chop
A round chop is commonly used for general business purposes, such as confirming the receipt of goods or signing service contracts. Some banks and corporate service providers may request a company to stamp documents with this chop, even though it has no legal requirement.
2. Long Chop (Signing Chop)
A long chop is mainly used for signing legal documents, contracts, and banking transactions. It often includes a space for an authorized signature along with the text “For and on behalf of [Company Name]”, making it more formal than the round chop.
Since signatures are legally sufficient in Hong Kong, many businesses operate without a company chop.
Legal Requirements for Company Chop Stamp in Hong Kong
If a company chooses to have a chop, it must follow Section 124 of the Hong Kong Companies Ordinance:
- If the company has both an English and Chinese name, both must appear on the chop.
- If the company has only one language name, it must match exactly as written on the Business Registration Certificate.
A signature alone is legally sufficient for most transactions, but some banks and partners may still request a company chop for added formality.
How To Get a Company Stamp in Hong Kong?
A company can design its company chop or company stamp based on its own standards and choices.
Air Corporate will create your company stamp when registering your company.
We can also help you create a digital version of your company chops for electronic signature.
Simply contact us if you did not incorporate with us but require a company chop/stamp.
Where to Keep Your Company Chop
If you run your business from overseas, the easiest option is to leave it with a trusted service provider in Hong Kong, such as:
- Your company secretary: Handles paperwork and filings.
- Your accountant or lawyer: Can keep it safe and ensure it’s used correctly.
- Your registered office: Keeps it in Hong Kong for easy access when needed.
Some service providers offer chop storage as part of their services or for a small fee.
Here are other best places to store it:
- In a locked safe or cabinet if you keep it yourself.
- With limited access so only trusted staff can use it.
- With a usage log to track when and why it’s used.
- Avoid sending it overseas unless absolutely necessary, as shipping costs can add up.
How to Replace a Lost or Stolen Company Chop
You don’t need to report the loss to authorities. However, if your chop was used for banking or contracts, notify your bank or business partners to prevent misuse.
You can do the following to get a new one:
- Order a replacement from a stamp maker or company secretary.
- A new chop can be ready in 1–2 days at a low cost.
- Consider making two sets—one for daily use and one for backup.
To avoid losing it again, you can:
- Store it safely in a secure place.
- Limit access to trusted people only.
- Keep a spare in case of emergencies.
If you think your lost chop could be misused, alert banks, service providers, or partners immediately.
Final Words on Company Chops in Hong Kong
While a common seal is not necessary nowadays, we strongly recommend that you use a company chop/stamp for your company.
Having a company chop will simply make your life easier when dealing with clients, customers, or government authorities in Hong Kong, Mainland China, or elsewhere.
Register your company in Hong Kong with Air Corporate today, and you'll get a company chop included in your business kit!
FAQs
Separate contract chops are needed when signing multiple contracts or documents that require distinct authorization or when different parties are involved in the agreements.
The Legal Representative Chop is used to authenticate and legally bind official documents, contracts, and agreements on behalf of a company by its authorized representative. It serves as a formal endorsement of the document's validity and commitment to its terms.
"Chopped and signed" refers to the process of affixing a company's official seal (chop) and signature to a document, typically to authenticate it and signify the company's agreement or approval. This combination ensures the document's validity and legal recognition.
