Meaning
This administrative and legal procedure refers to the mandatory process of formally declaring a company’s registered official seals lost, stolen, or misplaced in China. Under the regulatory supervision of the local Public Security Bureau, this action is a critical security measure to invalidate the missing seals and prevent their unauthorized use. The process of seal loss reporting must be executed through designated print newspapers (dengbao) and updated on the National Enterprise Credit Information Publicity System.
It applies to all foreign-invested enterprises, joint ventures and domestic entities that lose control of their primary corporate chops, financial seals, or contract seals. The boundary of this procedure stops once the old seals are declared legally invalid and the Public Security Bureau issues approvals to carve replacement chops. For foreign investors, this procedure is the primary legal mechanism to neutralize a hijacked or lost seal and re-establish secure corporate governance.
Notification Phase
The execution of this security procedure begins with the immediate publication of a formal loss announcement in an officially designated, state-approved regional newspaper. This publication must contain the company’s full registered name, its unified social credit code and the specific details of the lost seals (such as the corporate chop or financial seal). The published announcement must state clearly that the listed seals are lost and are declared invalid from the date of publication.
This physical newspaper publication serves to protect the company from future liabilities, as it provides public, legally recognized notice to all commercial counterparties and creditors. If a rogue employee or joint venture partner attempts to execute contracts or withdraw funds using the old seals after the publication date, the company can use the print notice to prove the transaction is unauthorized and non-binding.
Public Security Filing
Following the publication of the loss notice, the company must submit a formal application to the local Public Security Bureau to cancel the registered impressions of the old seals. This administrative step requires presenting the physical copy of the newspaper containing the notice, the company’s updated business license, the personal identification of the legal representative and the corporate resolution authorizing the change. The Public Security Bureau will record the loss in its central database and issue an official seal-carving approval certificate.
This certificate is the only legal document that allows an officially licensed workshop to carve replacement seals with new security codes and digital chips. Bypassing this step by carving unauthorized seals is a criminal offense under Chinese law and can lead to severe penalties for the company and its executives.
Operational Re-establishment
Once the replacement seals are carved, the company must complete a series of administrative updates to re-establish its daily operations and banking capabilities. The legal representative must personally present the new seals and the public security approval certificate to all commercial banks where the company holds accounts to update the signature cards. This update is essential because banks will reject any transaction that utilizes the old seal impressions once the bank is notified of the loss.
Simultaneously, the company must update its tax filings, labor registrations and contract templates to reflect the new seal impressions. This comprehensive update ensures that the company can resume normal operations under secure control, highlighting the importance of swift, disciplined action when a seal’s security is compromised.