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Differences of Identification Stamp & Regular Company Stamp

10 May

Differences of Identification Stamp & Regular Company Stamp

There is great difference between identification stamp and a regular company stamp as former can be used only to identify the origin or class of some product whereas a regular stamp of a company has legal binding on the company as well as its authorized user.

Regular company stamps also have different importance in different countries according to their business practices. Stamp of a company in China has more importance than in western countries. In most of the western countries signature of an authorized legal representative of a company are considered as a mark of authority in business practices. In China on the other hand the regular stamp of the company has far more importance than the signature of company’s representatives as they are rarely registered with the authorities. Every company in China has to register the stamp of the company, after its institution, with Public Security Bureau, the public authority in China. This stamp represents the company while dealing with third parties and for that reason the documents bearing this stamp have legal binding on the company even if they are not signed by any representative of the company.

Identification stamps on the other hand have no legal binding on the company as they are used only to identify the class or origin of the product manufactured or supplied by a company. It can be understood with an example, suppose a product was made in any country may has a stamp of identification that where it was manufactured or to which class of excellence it belongs. This identification stamp on the product does not relates it to any legal binding on the country producing it.

Moreover companies can also register various types of stamps to represent them to use them according to different field of specialization. The finance stamp for accessing bank accounts or making payments, the customs stamp to make declarations with customs and contract stamp for stamping contracts are some of the example of comply used regular company stamps that have legal binding on the company. Though these stamps are important for every type of company, big or small, but for larger companies their importance is more crucial as final authority in different maters is owned by a number of individual representatives of the company. But these stamps become important for the relationship between company and third parties through its representatives only if they are registered with the local authorities otherwise they will have the status of identification stamps only.

Some of the legal representatives of Chinese companies also have their personal stamps but these stamps own legal status only of they are registered with local authorities. After getting these stamps registered they can officially use them as regular company stamp on company’s papers, documents and even checks to make them legal binding on the company. The company’s representative need not sign the papers and documents as his name imprinted by the stamp is sufficient to give legal status to the document. The document having the stamp of legal representative of the company is presumed as a legal agreement with the company. No identification stamp has such legal binding on any company.

Internal and external legal liability of regular stamp: Regular company stamp is a useful tool for Chinese companies as it has internal as well as external legal liability. If it is used on any document, even if it is used in the absence of the authorized representative of the company, the document is considered as legal binding on the company. This binding cannot be waived off even if the third party knows that the registered stamp is not used by a competent authority or representative of the company. The company is bound to the terms of the contract if it is stamped properly.

Value of regular stamp: Company’s regular stamps have great value for it as it has to fulfill the terms of the document having this stamp imprinted on it. so for the use of these company stamps in routine company will have to balance between their restricted and convenient use. This is more important in case the authorized representative is not present to use the stamp.

Thus there is great difference between identification stamps and regular company stamps.



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