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Company Seal / Chop Custodian Services

One of the requirements for doing business in China is to own and use an official seal or chop to legally authorize documentation. The company stamp chop contains the registered name of the company and must be approved by the Public Security Bureau. The number of seals companies need to hold may differ depending on the business scope or the different types of official documentation.

Although it is a unique and non-transferable asset of the company, a company seal stamp is vulnerable to unauthorized use by non-accredited individuals, organisations or being copied and manipulated by an impostor, which can be detrimental to a business. While one person within a company can in theory hold all company chops, we would advise a segregation of duties to be created or to assign the chops to a trusted chop custodian services provider. LehmanBrown can provide chop custodian services to create this segregation and protect your business from fraud, the establishment of unauthorized bank accounts, unauthorized chopping of legally binding agreements and other risks.

How do we confirm the validity of a seal?

The best thing to do if you own a seal for your company is to register it with the local authorities even though it’s not mandatory to do it in China. This allows the authorized people of your company or legal entities to compare documents that have been sealed with a legitimate seal with those which have been stamped with an illegitimate seal.

How to prevent the company chop or seal being used in an unauthorized manner?

At LehmanBrown we can help to ensure the safety of company chops. Though our Company Seal and Chop Custodian Services, we can ensure that the chops are physically safeguarded with clear policies in case of absence of the custodian, combined with a dedicated maintenance log where the information of each use including the date/time, user’s name, signature and purpose of use. We can also help in constructing clear written policies that define the circumstance and/or purpose for the use of each chop; the authorized custodian for each chop and the custodian’s responsibility for the chop.

To make an enquiry about chop custodian services, please contact us at enquiries@lehmanbrown.com

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