what is a company chop hong kong

She had not been authorized by the defendant for this transaction. The court noted the requirements that :-. The key representation that was made here was the use of the company chop. In Hong Kong, you can either use a company chop or your signature. There are a lot of providers who can create custom company chops for entrepreneurs. Home > Resources > Do You Need a Company Chop/Stamp in Hong Kong? A Hong Kong company chop is like your business’s signature. It usually has the name and registration number of the company engraved on it. is often more recognizable and carries more weight than a stamp. A company chop is more of a tradition than something mandatory. Share on google. If … The toner supply company refused to accept the toner back, and reported the matter to the police. 1, 17/F, Unit 1, Glenealy, Central, Hong Kong | +852 3594 4334 |  TCSP licence: TC006483 | Privacy Policy & Terms and Conditions. It's the corporate equivalent of a signature. Fortunately, it is not very difficult to get a company chop in Hong Kong. With this background, the toner supply company no doubt felt justified in wanting the contract to be enforced and for it to get paid for the delivered goods. You can also create your company stamp at any mailroom store. In fact, the court here found that the defendant’s permission for the receptionist to use the defendant’s rubber chop was a representation to the toner supply company that she could act for the defendant in situations where the use of the defendant’s rubber chop would do. The defendant was particularly courageous in appealing to the High Court over such a small sum. It is possible to use a letterhead or stamp/chop that has these details included. Do You Need a Company Chop/Stamp in Hong Kong? Share on twitter. However, today there is no need for extensive paper documentation or legal requirement to keep hard copy record. The defendant appealed to the High Court. However, in the present case, the court noted that for matters involving representation, the toner supply company could not rely on it if such reliance was irrational. Companies entering into contracts to provide goods or services should ensure that staff are alert to factors that seem out of place or for significant orders made by inappropriate or junior staff, and that they do not rely on representations that simply ‘can’t be right’. This is why company chops are no longer as important as they used to be. Home > Resources > Do You Need a Company Chop/Stamp in Hong Kong? Dispute Resolution - Commercial Litigation, Dispute Resolution - International Arbitration. Just remember not to leave the chop in everyone’s hands, especially those who are not acquainted with all your business operations. The chop (stamp) is used to validate official documents such as contracts, certificates, deeds, and so on. A company chop is the stamp of a company (usually rubber) and is something which is unique to Hong Kong and a select few other jurisdictions. There are some regions around the world where a signature is all that is needed for such documents to be legal. Robertsons: A well-established independent Hong Kong law firm with an international focus and over 35 years of experience. As a Hong Kong company’s owner, do you need a company chop (stamp) to render valid documents? The creation process usually takes a couple of days. The toner supply company sued for the price of the first batch of cartridges for the rather small sum of HK$12,898 in the Small Claims Tribunal, and won. However, nowadays, the documents signed by directors alone can be subject to legal interpretation as the act or deed carried out by the individual on behalf of the company. In other words, a document without a stamp may be equally valid as one with a stamp on it. Back in the day of typewriters and handwriting, Green Box was used for keeping company records together with the stationery. © Conventus Law 2020 All Rights Reserved. Each business has to render legal documents and contracts, this practice being common for most legal systems in the world. You can either use a Hong Kong company chop or your own signature and it works the same way. The legal costs would have been significant compared to the amount they were ordered to pay by the Small Claims Tribunal. Our recommendation To be safe and secure when doing business both with Mainland China and other countries, it would be best to create your company stamp. The other requirements also seemed to be in place so that the representation in the use of the chop seemed to place the defendant in a difficult position. The defendant argued that the receptionist was only a clerk, who purchased toner under instructions from senior staff, and in ordering and accepting the toner from the plaintiff, had acted outside of the defendant’s internal procedures that govern buying office supplies. Company chops in Mainland China are registered with the government. This is due to the fact that company chops in Mainland China are registered with the government. However, a stamp is often not required and in most cases, a signature can replace a company chop. Most of the countries worldwide will not require a chop, but if your company has or will in the future have business with companies in mainland China, our recommendation would be to order a company chop to be safe. In the present case, had the defendant not been able to show the court that the receptionist was not allowed to enter into this contract, the result may well have been very different. In simpler terms, a Hong Kong company chop is like a business signature. The stamp you would find on a paper document meant that a company was committed to the contract or act. These documents need to be authorized by an official stamp or signature of a director or other person with legal authority. The term ‘chop’ is a term coming from colonial Indian English and it is common to a small portion of jurisdictions, Hong Kong included. The Court accepted that there was no actual authority for the receptionist to enter into the contract, and applied the law when a party (here the toner supply company) can enforce a contract against a company (here the defendant) that was entered into by an agent (here the receptionist) who does not have the authority to do so. As mentioned above, the signature of an individual with authority (CEO, CFO, etc.) In Hong Kong, however, the company chop functions as a hybrid between the Western and Chinese systems and is widely used in commerce, although, legally speaking a chop is not needed for valid execution of a document. This means that a chop may not always be a necessity. Each business has to render legal documents and contracts, this practice being common for most legal systems in the world. The chop (stamp) is used to validate official documents such as contracts, certificates, deeds, and so on. The court noted that the rubber chop, which is not the same as the common seal, does not have legal significance under the Companies Ordinance, but can be a representation of authority to enter into a contract. However, even though a stamping chop is no longer required, it still is a mark of identity for a corporation. (i) the company’s permission to the receptionist to use its chop was a representation limited to showing 3rd parties that the receptionist could act on behalf of the company where only affixing the chop would suffice; (iii) given the total value of the contracts, the contractor was reckless in accepting the company’s representation that its receptionist had the power to conduct business on its behalf; Non-parties Access to Court Documents granted by the U.K. Supreme Court, Discovery of documents in employer / employee situations, Compulsory Liquidation and Statutory Demands. These documents need to be authorized by an official stamp or … Share on facebook. Company chops are more important in Mainland China. Hence, all companies based in Hong Kong that do business with China should have a company chop. The evidence accepted by the Small Claims Tribunal was that the receptionist had completed order forms, and applied the defendant’s chop in between the words “accepted and order confirmed by”, and the words “authorized chop”. A company chop refers to a company’s rubber stamp. Instead, paperless filing is encouraged across the globe, especially in Hong Kong, which is a leading commercial center. The term ‘chop’ is a term coming from colonial Indian English and it is common to a small portion of jurisdictions, Hong Kong included. Here, the company was free to enter into the contracts and they did not require a signature (or to be in writing) to be valid and enforceable. The court found that it was reckless hence irrational for the toner supply company to rely on the receptionist with the representation of a rubber chop, to enter into contract for this large amount of money. The evidence was that it was part of the receptionist’s job to order stationery, and the defendant had given the receptionist permission to use the company’s rubber chop in the conduct of the defendant’s business. StartupsInvestorsE-commerceMarketplace       Dormant Companies, IncorporationCompany secretaryRegistered addressAccountingPricingFree consultation, BangladeshIndiaIndonesia                         MalaysiaPhilippines                             ThailandUnited StatesVietnam, About usPlatformSecurityPartnershipsContactAffiliates, © 2019 Sleek Hong Kong Limited | Tower No.

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