Vivian Mao interviewed by The Wall Street Journal on Company Chops in China
In recent months, Chinese news has been full of stories regarding several company’s internal struggles over one of their most valuable assets – company chops.
Company chops are government issued seals (or stamps), mandatory for conducting or operating a business in China. These chops are typically used for legally authorizing documents instead of a signature and replace signatures, which are commonly used in western countries.
For those doing business in China, the importance and implication of official company chops cannot be overstated, with companies going to great lengths to ensure they are secure and in the custody of trusted parties.
Recently Vivian Mao, Partner in our Shanghai office, sat down with the Wall Street Journal to discuss the importance of these chops to China’s businesses.
‘Managing control over a company chop is like arranging a prenuptial agreement,” explains Ms. Mao, “No one thinks about it in the beginning, when everyone is happy and gets along with each other. They only realize how important control over the chop is when there is internal disagreement or when business relationships break apart.’
To read the full article, please click here.
At Dezan Shira & Associates, our China offices are outfitted with special “chop rooms” where the prized rubber stamps are kept under lock and key. Looking for a secure place to store your company chop? Contact us today.
Upcoming Webinar on ‘Protecting Your Company Against Fraud Risks’
For many companies, times of economic hardship create a perfect storm of factors that leave them especially vulnerable to fraud risks. During these times, it is critical for businesses to assess their risks to fraud and quickly address any areas of concern.
On August 11, Ines Liu, International Business Advisory Assistant Manager, will discuss how a crisis such as the Covid-19 pandemic increases the risk of fraud and what businesses can do to protect themselves.
This webinar is free of charge. Click here for more information and to register.
To stay up-to-date with our publications, covering all aspects of doing business in Asia, you can visit our publication store, Asia Briefing. It also houses in-depth business guides and magazines for multiple regions in Asia.
Our website, China Briefing, is also home to a wealth of business intelligence on legal, tax, and operational issues in China from a practical perspective. Find more articles on Legal & Regulatory updates such as:
- Company Chops in China: What Are They and How to Use Them
- China’s Support Policies for Businesses Under COVID-19: A Comprehensive List
- Business Risk Management in China in the Era of COVID-19
Don’t forget to subscribe to our investor resource library, Asiapedia, for more related resources.