Why is seal management important for your company in China?
For many foreigners who come into contact with the company seal for the first time, the act of affixing the seal may seem unfamiliar. In Western practice, documents and letters are usually signed by individuals to confirm responsibility or ownership. However, in today’s business environment in China, the company seal represents the entire company and is crucial for both internal management and external transactions. Once a document is stamped with the company seal, it indicates endorsement by the company and grants legal effect to the document. Therefore, the correct use of the company seal is crucial for the survival of the enterprise, as improper use may lead to serious consequences. For more information about company seals, you can browse our previous blog post: The Importance of Company Seals in China.
What are the items included in seal management services?
Seal and certificate authorization management
Assist in authorization:We will assist your company in designating an authorized contact person responsible for managing and using the company seal and certificates.
Provide management experts:We assign professional seal and certificate management experts (custodians) to ensure safe and orderly use.
Use of seals and certificates
Usage request:Your authorized contact person or other employees can submit usage requests to our management experts (custodians) based on business needs.
Execution:After confirmation by the authorized contact person, our experts will handle the use of seals or certificates as required.
Usage records and tracking
Strictly record:We carefully record every use of the seal or certificate, including details such as the documents used, time, purpose, and other relevant information.
Long term record retention:We provide long-term storage of usage records to ensure the integrity and traceability of your documents.
Regular reporting service
Detailed monthly report:Every month, we prepare and generate comprehensive reports detailing the usage of all seals and certificates, and provide feedback and updates to your company.
Optimization suggestions:We analyze the data and provide recommendations to help your company further standardize and improve its usage processes.
By providing these services, we ensure that your company’s seal and certificate management is professional, compliant, and efficient, while optimizing operational workflows and minimizing risks.
How to use the company seal after choosing Simon services?
Seal authorization confirmation
Authorization preparation:We assist your company in preparing and establishing an authorization matrix document to clarify the authority of seal management and ensure clear delineation of responsibilities for all relevant parties.
Sign and confirm:We assist you in signing the authorization document and ensure that our custodian accurately records the final version.
Seal usage process
Application for assistance:Your company’s employees can submit a seal usage application, accompanied by a copy of the document that needs to be stamped. At the same time, we ensure that all application copies are sent to the authorized approver and our seal custodian. We will assist in submitting the original documents to the custodian’s office for processing.
Approval and Seal:Our seal custodian verifies authorization and confirms seal requirements, including seal type, number of copies, and document details. We will carefully stamp the document, create a scanned copy of the stamped document, and record all usage records.
Document delivery:We will deliver the stamped document to the designated recipient or address and notify your team via email to ensure that the process is fully completed.
Seal borrowing process
Application and Transfer Management:We guide your team to fill out a borrowing application form, stating the purpose, borrowing period, and other detailed information, and submit the application to your company’s authorized approver.
After approval, our custodian will prepare a transfer list and ensure the safe transfer of the seal.
Return verification:After returning the seal, we will verify its condition, update usage records, and ensure appropriate control and accountability for your company’s seal.
Through these comprehensive services, we enable your business to manage seals safely and efficiently, and fully comply with relevant regulations.
What is the difference between the company seal and the signature of the legal representative?
The company seal and the signature of the legal representative have different legal effects. The company seal represents the will of the company itself and usually requires authorization from the board of directors or shareholders, while the signature of the legal representative represents their personal will and has different legal effects. In most cases, formal company documents and contracts should use the company seal, not just the signature of the legal representative.
Is there any legal responsibility for the misuse or incorrect use of the company seal?
Yes, if the misuse or incorrect use of the company seal results in losses or violations of laws and regulations, the responsible person (such as the seal manager or legal representative) may bear legal responsibility. If the misuse of seals results in the invalidity of contracts or economic losses, civil liability for compensation may be borne, and if the circumstances are serious, criminal liability may be pursued.
Does the company seal need to be updated regularly?
When the company name is changed.
When the legal representative changes.
If the seal is damaged or fails.
If the company decides to update the seal for security purposes.
What should I do if the company seal is lost?
Report the loss to the police and obtain a report of the loss.
Apply to relevant authorities (such as the State Administration for Industry and Commerce) to cancel and re register the seal.
Replace with new seals and render the lost seals ineffective to prevent unauthorized use.
Investigate the losses and report to the senior management of the company.