Got Your Chop?

In China your signature is not enough. For a document to be legally binding, you have to place your company chop on it. Your chop will affix your credit and your promise. It will serve as your company’s signature and it will close that final deal.  In the west a chop would be referred to as a company seal or stamp. In China it is usually a piece of solid plastic that has the company name carved in the face to imprint the Chinese characters that signify your company name.  Some western executives also have personal chops in English that spell out their personal name or company name but these chops have no legal value for the company.

What kind of chops do you need?
There is a whole range of them and standard chops in a WFOE include company chop, legal representative chop, invoice chop, customs chop, agreement chop and account number chop plus there could be more.  To obtain your three basic chops (company, legal representative, and financial), you will need:
• a business license from the SAIC
• to be registered with the local Public Security Bureau (PSB)
• PSB approval to receive chops from an appointed chop company.

Other chops such as agreement, invoice or custom chops can be obtained from the appointed chop company as well. In order to do so you will need to present your business license and your company chop. The account number chop can be obtained from your bank.

Types of chop & application

CHOP	USED FOR	KEPT BY
Company Chop	Annual inspection, official documents, administration & personnel documents	Legal representative or others appointed by him
Legal Representative Chop	Various official documents, bank notes, etc.	Legal representative
Financial Chop	Bank notes, etc.	Accountant
Invoice Chop	Invoices issued by company	Accountant
Custom Chop	Custom documents	Legal representative or others appointed by him
Agreement Chop	Agreements between company & client	Legal representative or others appointed by him
Account Number Chop	Bank notes	Accountant

That said, a chop alone is not always enough. For some important official documents, in addition to the chop, the signature of the legal representative is required. He also has the overall responsibility for the chop’ s safekeeping. Some other facts to consider: If a company changes their name, the company chop will have to change accordingly and be approved by the Public Security Bureau. If your company ceases to exist the chop will be destroyed by the SAIC. And no chop may be duplicated - only originals are allowed.

In China chops mean business. Make sure you’ve got them in order.

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