In Hong Kong Choosing Between Round and Square Seals for Contract Execution

In Hong Kong The Dilemma and Choice Behind Contract Seals - Round or Square?

In Hong Kong, where business transactions are frequent and the legal system is well-established, contract signing serves as a crucial step for companies to establish partnerships and protect their rights. In this process, the use of company seals is not only a legal procedure but also a cultural habit and a symbol of identity.

For many businesses and individuals, the decision between using a round seal round chop or a square seal square stamp is often more than just a matter of form. It reflects considerations around tradition, regulatory compliance, and industry norms.

Historical Roots of Round and Square Seals

In traditional Chinese culture, seals have long represented authority and commitment. Particularly on the mainland, round official seals are standard for almost all enterprises and institutions. This tradition has gradually influenced the Hong Kong market through deeper economic exchanges.

However, as a former British colony, Hong Kong's commercial system largely follows common law traditions, under which square seals-or even a combination of signature and seal-are more commonly seen in official documents and contracts. In recent years, with increased mainland investment in Hong Kong, many companies face a practical dilemma when signing contracts should they use the widely accepted round seal from the mainland, or stick with the locally prevalent square seal? This seemingly simple question actually involves multiple factors, including legal validity, commercial customs, and corporate cultural identity.

Legal Validity Is Equal, But Perception Varies

According to the Companies Ordinance of Hong Kong, as long as a seal clearly indicates the company name and expresses the intent to be legally binding, whether it is round or square does not affect its legal validity. Strictly speaking, there is no legal distinction between the two forms.

Yet in practice, acceptance varies significantly across industries. For example, in highly regulated sectors such as finance and real estate, many institutions prefer square seals, viewing them as more formal and professional. Meanwhile, companies founded by individuals from mainland China tend to favor round seals to maintain a unified brand image with their parent companies.

Clients also make subconscious judgments based on visual familiarity. Industry insiders note that if a contract from a mainland-based company bears a round seal, local clients may perceive it as more Chinese, whereas a square seal might suggest a more localized operation.

Flexible Approaches in Commercial Practice

Faced with such perceptual differences, an increasing number of companies are adopting flexible strategies in practice. Some prepare both round and square seals and choose according to the counterparty; others apply one type on the original contract and another on the copy to meet different client preferences.

In June 2025, for instance, a Shenzhen-based tech company setting up a branch in Hong Kong held a special meeting to discuss the choice of seal design. It eventually decided to adopt a dual-seal approach-retaining the round seal used by the parent company while also registering a standard square company seal in Hong Kong. The company’s executive stated We want our clients to feel our professionalism and local presence, while maintaining consistent branding with the group. Such practices are particularly common in cross-border cooperation projects. In some cases involving contracts governed by both mainland and Hong Kong laws, companies even include specific clauses clarifying the legal status of the chosen seal format to avoid potential future disputes.

A New Trend Amid Cultural Integration

As the development of the Guangdong-Hong Kong-Macao Greater Bay Area progresses, economic and trade ties between Hong Kong and the mainland continue to deepen, and the boundaries of seal culture are becoming increasingly blurred. More and more local companies are accepting the use of round seals, while mainland enterprises are beginning to recognize the international applicability of square seals.

Notably, certain emerging industries, such as fintech and cultural creativity, are even moving toward a no-seal trend-replacing physical seals with electronic signatures or blockchain-based authentication methods. Although this shift has not yet fully replaced the need for physical seals in paper contracts, it offers a fresh perspective on future document management.

Nevertheless, regardless of technological advancements, seals as cultural symbols continue to carry people’s understanding of trust, responsibility, and the spirit of contract. In this sense, the debate between round and square seals is not merely about shape-it reflects the natural friction and fusion between two distinct commercial cultures in an increasingly integrated world.