Company Chop: Is It Important? Part One

The application of company chops is common in business. Because of that, I am sure that most of us are familiar or have even seen the application of company chop on certain documents before. 

Basically, a company chop is a small device made of rubber at a company chop maker and engraved into a particular design. Usually, the design will include the company name, registration number, logo, and contact details. However, there are no absolute rules for the information to be included on a chop. The company can add more or less information based on their references.  

But why is a company chop commonly used in business? Is a company chop important to use?  

To answer the question, especially about the importance of a company chop, we need to know why a company chop is used and applied first.   

Why Is a Company Chop Used? 

As we mentioned earlier, the application of a company chop is common in business. But that doesn't mean that the company chop is mandatory, especially in Singapore. 

Today, based on the Companies Act, a company chop is more of an option than mandatory in Singapore. But why are so many companies still using the chop? Here is the answer! 

1. Company Registration Number  

Even though the company chop is no longer mandatory, the application of the chop is continuously running until now. Why? 

In Singapore, based on the Companies Act, the chop is no longer mandatory. However, the registration number must be legible on the document issued by the company.  

But what is the correlation between that information?  

Do you know what kind of information that is usually found on a company chop?  

We mentioned earlier, one of the information that is usually included in the chop is the registration number. Because of that, the chop is still popularly used now as a way to print registration number and company name on the printed document issued by the company.