Business

The Importance of Common Seal

One of the most important needs of a company, after it gets established, is a company seal. A common seal is beneficial for providing a sense of authenticity of a document released by a company so that it can always maintain credibility and give off a professional image toward its clients and business associates.

A company seal is a seal that is officially issued and must be registered for a company. It acts as the official signature of a company. Although some countries such as Singapore don’t necessarily require a common or company seal for the authorization of documents and only require the director’s signature instead, a company seal is still required. A company seal might be needed for opening a bank account and other smaller corporate accounts. A common seal is also required for important transactions that can happen in business.

It must be known that a company seal is not allowed to be used for recording minutes or service level agreements. Authorizing vendor contracts using a company seal is also not allowed. It is important to note down that the use of company seal must be approved first and the authorization must not be done before that said approval. The company must keep track of the uses of company seal and document everything in the Articles of Association or during minutes in a board meeting.

The power of a company seal has watered down now. Documents can be authorized and issued without a company seal although some still require the signature of the company’s CEO or president. However, the possession of a company seal is still beneficial as it is deemed as the official mark of a company or corporation. Some documents still require the company seal and it is still a part of board resolution as it can only be regarded as valid with the mark of a company seal.

If your company still hasn’t got its own company seal, you must apply for it with the authority or government. Make sure that your company has been legally approved and registered, clear for doing business. You may create your own Kiasuprint company seal design. But you must make sure that you keep your design simple and moderate, having all the necessary elements present in the company seal. If you have problems in designing your company logo or the seal in general, you can try hiring a professional designer that can help you with it. This costs more money for your company, but it is always worth it to make sure that everything is good. Don’t be hesitant to put in money for a good quality company seal, because it will make your company appear better, giving off a proper impression toward other people who see it. Work with a professional seal manufacturer to get the best quality possible.

You must be familiar with the laws and regulations that apply to your country regarding the usage of a company seal in corporations. Understand fully the power and authority that a company seal holds and keep it safe in order to avoid getting caught in legal problems and misuse of this important business tool.

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