What If Company Stamp Is Lost?

CHINA LAW 101

Video 87

This is the 18th video of the Investing In China Chapter.

There are five major seals that every company should have: the official seal, financial seal, contract seal, invoice seal, and legal representative seal. These seals play a crucial role in various aspects of business operations. Unfortunately, many business owners are not fully aware of their importance. However, ignorance regarding their functions can have a significant impact on the company's growth and may even lead to legal disputes.

Let's delve into the significance of each seal. The official seal is the most powerful seal of the company. It symbolizes the legal authority of the company's representative and is used for official correspondence, documents, contracts, introduction letters, and certificates. Any document bearing the official seal holds legal validity.

The financial seal, on the other hand, is primarily used for financial transactions with banks. It is required for bank drafts, cash checks, payments, and collections. The financial seal also plays a crucial role in financial settlements and interactions with banking institutions.

Next, we have the contract seal. As the name suggests, this seal is specifically used for signing contracts within the company. Different departments use the contract seal when entering into various types of purchase and sales agreements.

The invoice, also known as the fapiao seal is exclusively used for issuing invoices and receipts to external parties. It is required when a company needs to purchase and issue invoices. The seal impression contains important information such as the company's name, the words "Invoice Special Seal," and the tax registration number.

Last but not least, we have the legal representative seal. This seal is mainly used for company-related resolutions and banking transactions. It is commonly used during company registration, opening of basic corporate accounts, and check endorsements. The legal representative is typically responsible for keeping custody of this seal.

It is essential to understand the significance of these seals to ensure smooth business operations. Lack of knowledge regarding their functions can lead to serious consequences. Now, let's briefly discuss the process of reissuing an official seal, as it is an important aspect of seal management.

If the official seal is lost, the following steps need to be taken. First, the legal representative should bring their original and a photocopy of their ID card, along with the original and a photocopy of the business license, to the local police station to report the loss and obtain a loss report certificate.

Once the loss report certificate is obtained, it should be used to publish a declaration in a daily newspaper at or above the municipal level. This declaration states that the official seal is invalid.

After three days of publication, the legal representative should bring the entire newspaper containing the declaration, along with the original and a photocopy of the business license, a photocopy of their ID card (with the front side copied), and a written explanation of the lost official seal signed by the legal representative. This explanation should include detailed information about the loss report, the declaration, and the time and place of the loss.

Finally, the new official seal can be engraved, and the necessary documents should be collected for the reissuance process.

I would like to emphasize that the reissuance process and required materials for other seals, such as the financial seal, contract seal, invoice seal, and legal representative seal, are generally similar to those for the official seal.

In conclusion, the proper management and understanding of company seals are vital for the smooth functioning of businesses. Each seal serves a unique purpose and plays a significant role in various aspects of company operations. It is essential for business owners and managers to familiarize themselves with the functions and procedures related to these seals to avoid any potential issues that may hinder business growth or lead to legal disputes.

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