The Risk of Company Seals and the Use of Signatures in China
E-Learning | Masterclass
In China, a stamped document carries far greater legal force than a handwritten signature. Unlike Western business systems that rely on personal signatures or digital authentication, Chinese law recognizes the company seal (chop) as the ultimate symbol of corporate authorization. Every registered company, whether domestic or foreign invested, is required to maintain a structured seal system, with different seals designated for contracts, finance, legal representation, or daily operations.
This masterclass introduces participants to the critical role of seals in business compliance and risk management. It explores why sealed documents are binding under Chinese law, how seals differ by function, and why control over a seal can equate to control over the company itself. Participants will also learn about seal management best practices and the risks associated with improper use, unauthorized access, or forgery, one of the most common sources of corporate fraud and legal disputes in China.
Who should join?
This masterclass is designed for executives, entrepreneurs, and professionals involved in sourcing, partnerships, or investments in China who need to verify company legitimacy and reduce business risks.
100% Online delivery
The course is designed to be completed fully online enabling students to continue working during the masterclass.
Literature
The masterclass covers all literature and reading materials essential to contracting and managing freelancers in China.
Duration
The standard duration of the course is 4 weeks based on an average time commitment of 4 hours per week.
By the end of this masterclass, you will be able to:
- Explain why seals carry legal authority in China and how they differ from Western-style signatures.
- Identify the most commonly used types of company seals, including their distinct roles and legal implications.
- Recognize the operational and legal risks associated with seal usage, including unauthorized stamping, counterfeit seals, and internal fraud.
- Understand the importance of proper seal management and access controls to protect corporate interests.
Unit 1: Introduction The first unit provides an orientation to the course and the online learning environment. The unit does not carry credits. You are encouraged to go through the materials at their own pace to get accustomed to the online medium.
Unit 2: Understanding the role and power of company seals in China The use of company seals in China is deeply embedded in daily business practice and replace the function of signatures as used in Western countries. Every company – domestic or foreign-invested – holds a set of company seals, of which each is to be used for a different purpose. Due to the power company seals represent a need for clear internal controls and supervision for use is a prerequisite. In this article the importance of sealed documentation in China will be discussed, followed by the outlining the characteristics and use of most commonly used seals. Finally focus goes out to establishment of a legal framework and internal control system for seal company seal management.
Unit 3: Verification of company seals in China The verification process of the authenticity of the company seals and authorized use requires a three-step approach including performing desk research, visit to the in-charge Administration of Market Regulation and a visit to the third-party company. This unit will cover each of these steps in detail.
Unit 4: Common scams involving company seals in China In this unit the most common types of scams involving company seals are examined, offering an overview of their characteristics and presenting case studies that illustrate how they occur, their impact, and the consequences that follow.
Unit 5: The use of signatures in China In China, company seals play a central role in business transactions, effectively serving the function that signatures fulfill in many Western countries. While signatures remain important for risk management, their use requires careful consideration of specific factors. In the event of a dispute with a Chinese third-party company, the burden of proof lies with the contracting party to demonstrate the existence of a commercial relationship. In such cases, both company seals and signatures serve as critical evidence in arbitration or court proceedings.
Assessment
Assessment is carried out through a series of written assignments to be completed at the end of each unit.
Certificate of Completion
A Certificate of Completion is issued upon the successful completion of the course.
Assessment
Assessment is carried out through a series of written assignments to be completed at the end of each unit.
Certificate of Completion
A Certificate of Completion is issued upon the successful completion of the course.
Further study
The masterclass The Risk of Company Seals and Use of Signatures in China is part of the certificate course Due Diligence Essentials for Business in China. Successful completion of the masterclass grants automatic eligibility for admission into the certificate course and confers a full pass for the corresponding module.
Tuition fee
Tuition fee for the masterclass is EUR 149 to be paid in advance.
The tuition fee includes all necessary literature and study materials, guidance and support during your studies, free extension of the study duration (if required), and 1:1 contact with your course professor.
Start date
Open enrollment applies to this masterclass. You can start this course at a timing of your own convenience.
How we deliver value
Program Completion Benefits
Certificate
Upon successful completion of the masterclass, you will earn a digital certificate of completion from the Institute of China Studies.
Note: After successful completion of the online masterclass, your verified digital certificate will be emailed to you in the name you used when registering for the program. All certificate images are for illustrative purposes only and may be subject to change at the discretion of the Institute of China Studies.
Contact us
Would you like more information about the course and the admission requirements? Then request a free study consultation. Of course, free of charge and without obligation. This way you will learn more about the content of the course, the teaching materials, and the online learning environment.
Enroll today
Enroll today and develop essential skills and insights about Individual Employment Contracts in China, which can be directly applied in your professional work environment.