Company chops also are known as a seal or stamp, are mandatory for doing business in China and replace signatures that are used in Western countries.
A company seal is a tangible representative and legal evidence of the company’s activities abroad.
As such, the rights and obligations
arising should be borne by the company, not the holder or custodian.
Foreign-invested enterprises (FIEs) must produce the company chop after registering with the Administration for Market Regulations (AMR).
Recently, a spate of business disputes have surfaced in China,
concerning the misappropriation, misuse, or forgery of company chops— placing the spotlight on a long-held and powerful system that has very much been ingrained in China’s business culture.