Use of Seals in China
Do you face these issues in China?
How can you be sure that:
- policies and procedures are complied with?
- approved requests for usage of seals result in corresponding effected contracts?
- seals have not been misused?
- all seals in circulation are completely accounted for?
- all seals are authentic and comply with local regulatory requirements?
- all contracts entered into using the seals are captured completely in a database?
Mitigating Risks Associated with Seals
Management of seals is a unique and significant challenge for companies in China.
Seals have been used in China for centuries to represent the authority of the emperor in official documents. That tradition has survived and the company seal — also more commonly known as a company stamp — is essentially an instrument that carries the authority of the company in various transactions.
There are also complexities due to the use of several types of seals in China. In addition, the significant power entrusted to the seal presents unique risks that companies looking to invest or start up in China must take note of.
A Cloud-based Seal Management Solution — C3
C3 is SBA Stone Forest’s cloud-based Custodian, Compliance and Certification solution for managing seals in China. Developed by our team of accountants and in-house legal officers, C3 allows business owners and HQ controllers to authorise, track and review business activities in China anytime, anywhere. Enjoy peace of mind over seal usage with quick answers to the following:
C3 allows you to:
- Control and prevent unauthorised use of company seals
- Mitigate the risk of total reliance on the seal keeper(s)
- Have a central depository system for all licences, contracts and resolutions
- Access regional offices’ information at a glance, anywhere, anytime
- Establish clear policy statements on usage of seals