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Company Seal Management

For foreign investors unfamiliar with Chinese company seals, opting for a company seal management and custody service would be an excellent choice!

Why Managing Seals is Important for Your Company in China?

For many foreigners encountering company seals for the first time, the act of stamping may seem unfamiliar. In Western practices, documents and letters are typically signed by individuals to confirm responsibility or ownership. However, in today’s Chinese business environment, the company seal represents the entire company and is crucial for both internal management and external dealings. Once a document is stamped with the company seal, it signifies the company’s endorsement, granting the document legal validity. Therefore, the proper use of company seals is vital for the survival of a business, as improper use can lead to serious consequences. For more insights into company seals, you can explore our previous blog post: The Importance of Company Seals in China.

 

What Items Are Included in the Chop Management Services?

Seal and Certificate Authorization Management

  • Assisting with Authorization: We help your company designate an authorized contact person responsible for managing and using company seals and certificates.
  • Providing Management Specialists: We assign professional seal and certificate management specialists (keepers) to ensure the usage process is secure and well-organized.

Seal and Certificate Usage

  • Usage Requests: Your authorized contact person or other employees can submit usage requests to our management specialists (Keepers) based on business needs.
  • Execution: Once confirmed by the authorized contact person, our specialists handle the use of seals or certificates according to the request.

Usage Records and Tracking

  • Strict Record-Keeping: We meticulously document every instance of seal or certificate usage, including details such as documents used, time, purpose, and other relevant information.
  • Long-Term Record Keeping: We provide long-term storage of usage records to ensure the integrity and traceability of your documents.

Regular Reporting Service

  • Detailed Monthly Reports: Each month, we compile and generate comprehensive reports detailing all seal and certificate usage, providing feedback and updates to your company.
  • Optimization Suggestions: We analyze the data and offer recommendations to help your company further standardize and improve its usage processes.

By offering these services, we ensure that your company's seal and certificate management is professional, compliant, and efficient, minimizing risks while optimizing operational workflows.

 

How to Use the Company Seal After Choosing Hongda’s Service?

Seal Authorization Confirmation

  • Authorization Preparation: We assist your company in preparing and establishing an authorization matrix document to clarify the authority for seal management and ensure that all relevant parties’ responsibilities are clearly defined.
  • Signing and Confirmation: We help you complete the signing of the authorization document and ensure the final version is properly recorded by our custodian.

Seal Usage Process

  • Application Assistance: Your company’s employees can submit a seal usage request, attaching a copy of the document to be stamped, while we ensure all requests are copied to the authorized approver and our seal custodian. We will facilitate the submission of original documents to the custodian’s office for processing.
  • Approval and Stamping: Our seal custodian verifies the authorization and confirms the stamping requirements, including the type of seal, number of copies, and document details. We will carefully apply the seal to the document, create a scanned copy of the stamped document, and log all usage records.
  • Document Delivery: We deliver the stamped documents to the designated recipient or address and notify your team via email to ensure the process is fully completed.

Seal Borrowing Process

  • Application and Handover Management: We guide your team in filling out borrowing request forms, specifying purpose, borrowing duration, and other details, and submit the requests to your company’s authorized approver.
    Once approved, our custodian prepares a handover list and ensures the seal is transferred securely.
  • Return Verification: Upon the return of the seal, we verify its condition, update the usage records, and ensure proper control and accountability for your company’s seal.

Through these comprehensive services, we enable your business to manage seals securely, efficiently, and in full compliance with relevant regulations.

Why Choose Hongda?

Quick Processing

With our experienced team members, we can process your projects faster than others.

No Success, No Charge

Hongda's promises that we only charge once your project is successfully completed.

Tailored Services

We will provide the most suitable business proposal based on your own case.

Trackable Process

Hongda has an online system for you to track any updates of your projects.

Frequently Asked Questions

Still have a question? No worries! We are glad to answer!

What is the difference between a company seal and the signature of the legal representative?

The company seal and the signature of the legal representative differ in legal effect. The company seal represents the will of the company itself and usually requires authorization from the board of directors or shareholders, whereas the legal representative's signature represents their personal will and has a different legal effect. In most cases, formal company documents and contracts should use the company seal, rather than just the legal representative's signature.

Will there be legal liability for the misuse or mistakes involving the company seal?

Yes, if the misuse or mistakes involving the company seal cause the company to suffer losses or violate laws and regulations, the responsible individuals (such as the seal manager or legal representative) may bear legal liability. If the misuse of the seal results in an invalid contract or financial losses, civil compensation liability may apply, and in serious cases, criminal responsibility may be involved.

Does the company seal need to be updated regularly?

The company seal does not need to be updated regularly, but it needs to be replaced under the following circumstances:

  • When the company name changes.
  • When the legal representative changes.
  • If the seal becomes damaged or ineffective.
  • If the company decides to update the seal for security purposes.

What should be done if the company seal is lost?

If the company seal is lost, the following actions should be taken as soon as possible:

  • Report the loss to the police and obtain a report of loss.
  • Apply to the relevant authorities (e.g., the
  • State Administration for Industry and Commerce) for the cancellation and re-registration of the seal.
  • Replace the seal with a new one and invalidate the lost one to prevent unauthorized use.
  • Investigate the loss and report it to the company’s senior management.

Sound United is the leading designer and manufacturer of consumer audio products in the US. Sound United has been using Hongda since 2013. Moving one’s operation to China is not a small task. But Hongda’s expert services helped us set up a company and deal with tax issues so we could get on with growing our business in no time at all, and that’s why we continue to use them today.



Jack Peng

Asia Pacific Vice President | Sound United

Sound United

Still have a question? Get in touch today!