Everything You Need to Know About Company Chop Stamp

A company chop stamp or corporate stamp is mandatory in certain jurisdictions and replaces the signature of a director or legal representative to validate and bind a document or a contract.

Applicable laws in Hong Kong on company chops/stamps changed over the years.

This article explains the function of a company stamp and its significance.

We also explain if a company chop/stamp is required in Hong Kong.

What is a company chop?

In Hong Kong, a company chop is normally a small round stamp, in blue or red ink.

The company stamp 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 was a prevalent term during the 17th century.

Company chops are also recognized in other common law jurisdictions such as India, China, Australia, and Canada, to name a few.

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 a requirement as a signature has the same effect.

However, certain business transactions specifically require a company stamp.

For example, a company will be required to sign and chop the application form when applying for a bank account.

That is also the case when sponsoring an employee visa.

Company chops have greater use and official value in Mainland China.

Therefore, companies that do business with or have a subsidiary in Mainland China are recommended to use a company stamp to avoid any complications.

Legal Requirements for Company Chop Stamp

In some countries, having a company chop stamp is mandatory, and failure to comply with the legal requirements can lead to severe consequences. To obtain a company chop stamp, the company must follow the local laws and regulations, which may vary depending on the jurisdiction. Typically, the company must provide the following documents to the relevant authorities:

Business registration certificate: This document proves that the company is registered with the government and has the legal right to operate.

Identification documents: The company’s legal representative must provide a valid identification document, such as a passport or national identity card.

Application form: The company must fill out an application form, which usually includes information about the company’s name, address, and other relevant details.

Company chop design: The company must provide a design for the chop stamp, which may include the company’s name, logo, and registration number.

Once the application is submitted, the relevant authorities will review the documents and may conduct an inspection of the company’s premises before issuing the company chop stamp. The process may take several weeks or even months, depending on the jurisdiction.

Using an unauthorized company chop stamp, or using the company chop stamp for illegal purposes, can have serious legal implications. Therefore, it is crucial for companies to comply with the legal requirements for obtaining a company chop stamp. In case of any doubt, the company should seek legal advice from a qualified professional.

Different types of Company Chop Stamps

In China, company chop stamps or seals are used for a variety of purposes, including signing contracts, approving transactions, and more. They are an essential part of doing business in the country, and there are several different types of company chop stamps available. Let’s explore the different kinds of company chop stamps in detail.

A. Traditional Rubber Stamps

The traditional rubber stamp is the most common type of company chop seal, and it is widely used by small businesses and startups in China. These stamps are made of rubber, and they are usually mounted on wooden blocks. Traditional rubber stamps require a separate ink pad, and they are often used in conjunction with red ink, which is considered lucky in Chinese culture.

B. Pre-inked Stamps

Pre-inked stamps are a popular alternative to traditional rubber stamps. These stamps contain ink in their design, and they do not require a separate ink pad. Because of this, pre-inked stamps are cleaner and more convenient to use than traditional rubber stamps.

C. Self-inking Stamps

Self-inking stamps are another popular option for businesses in China. These stamps have a built-in ink pad that automatically re-inks the stamp after each use. Self-inking stamps are durable and long-lasting, making them an excellent choice for businesses that need to use chop seals frequently.

D. Electronic Stamps

Electronic stamps are a more recent addition to the world of company chop seals. These stamps use digital technology to create a seal instead of physical ink. Electronic stamps are more secure than traditional stamps, as they can be programmed to only work with specific accounts or transactions. However, they are also more expensive than traditional stamps.

Companies should carefully consider their needs and business requirements before choosing a particular type of company chop seal.

How to get a company stamp?

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.

Final words

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!

Focus on your business. We take care of the rest.