All Chinese government authorities, institutions, and companies have an official chop or seal, the use of which binds the organisation legally. Official company chops must be registered with the public security authorities. The making of an entity's chop is closely regulated.

Chops are used in addition to and sometimes instead of the signature of a legal representative. In addition to its official chop, a company generally also has both a finance and a contract chop. The legal representative has a personal chop, which is also registered with the public security authorities and local offices of the State Administration for Market Regulation (SAMR). Prudence dictates strict controls over the use of company chops to prevent fraud.