Signature, stamp, signature and stamp… ? it is easy to get confused about how to execute a contract in China.
From a legal point of view, the signature of the legal representative or the affixing of the company’s stamp (or Company Chop) is sufficient to bind the company in the eyes of third parties.
In practice, however, the Company Chop is perceived as the supreme and undeniable instrument of society’s commitment. It is thus commonly accepted that a contract is only subject to Company Chop, without the signature of the legal representative. The opposite is not true.
The ownership and use of Company Chop is therefore crucial for the proper functioning of a company.