Why chops matter
In China, a document stamped with the company chop is generally treated as the company’s act, often without any signature. That makes chops more powerful than a signature in most Western systems, and a common source of disputes.
The main chops
| Chop | Chinese | Used for |
|---|---|---|
| Official company chop | 公章 | Contracts, official letters, government filings |
| Finance chop | 财务章 | Bank transactions, cheques, tax filings |
| Legal representative chop | 法人章 | Bank transactions together with the finance chop |
| Contract chop | 合同章 | Signing contracts (optional) |
| Invoice (fapiao) chop | 发票专用章 | Issuing fapiao |
Chops are carved by licensed makers after the business licence is issued and filed with the Public Security Bureau.
Controls that work
- Separate custody: never let one person hold both the finance chop and the legal-representative chop.
- A usage log: record every use, with date, document and approver.
- Clear authority: set out in writing who may approve chop use and for what.
- Plan for departures: retrieve chops on day one when a key manager leaves.
If a chop goes missing
Report it to the police, publish a loss notice, and apply for a replacement. Notify your bank and key counterparties so they don’t accept documents stamped after the loss.
Chop control is part of our annual compliance checks for clients.