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The service agreement shall be signed by both parties. The employer shall also affix an imprint of the company seal of the contract seal on the contract. The company seal is used to legally authorize documentation and serves as the company’s official signature. The company seal is usually held by the legal representative.

Enterprises are required to have the seal carved as part of their incorporation process, after approval by the local bureau of the Administration of Market Regulation in the locality where the enterprise will be established is given. In accordance with the regulations stipulated by the State Council, the company seal is round shaped and has a Penta star (five-pointed star) in the middle, which is surrounded by the name of the company written in Chinese characters. The bottom of the seal often includes the company registration number. The maximum diameter of the company seal is set at 4,5 centimetres. The name of the company must be approved by the Public Security Bureau (PSB).

Figure 12 provides sample text included in service agreements regarding the signature section.

The use of signatures by Chinese individuals

When a Chinese national signs documentation, the following considerations should be made:

• The full name of the company representative should be written in Chinese characters. preferably in combination with the function title of the position held. Names of Chinese individuals consists out of a minimum of two to maximum four characters.
• The ((full) name of the company representative written in Hanyu Pinyin should not be accepted. Hanyu Pinyin is the official romanization system for Standard Mandarin Chinese in mainland China. Hanyu Pinyin is a system to support learning Mandarin Chinese but is not an official language. It is a phonetical adaptation of Mandarin Chinese. A name written in Hanyu Pinyin cannot be confirmed to be of the company representative.
• If the company representative has adopted a Western name, using this name for signing documentation should not be accepted, unless documented evidence is provided that the Western name has been duly notarized and can be confirmed to be of the company representative.
• The use of a Western-style signature by a Chinese national for signing documentation purposes should not be accepted, unless documented evidence is provided that the signature has been duly notarized and can be confirmed to be of the company representative.

The use of signatures by foreign individuals

When a foreign (non-Chinese) national signs documentation, the following considerations should be made:

• Foreign, non-Chinese nationals have the tradition to sign documentation using their signature. In addition to the signature, the full name of the company representative should be written out, preferably in combination with the function title of the position held.
• Foreign, non-Chinese nationals signing documentation with their Chinese name written in characters is not accepted, unless can be proven that the name has been duly notarized and can be confirmed to be of the company representative. Figures 13, 14 and 14 provide an example of notarization of Chinese name of a western individual.
• Chinese name written in pinyin is not accepted, for the same motivation applicable to Chinese nationals.