A common seal is one of the necessities of a company. It is important in order to provide a sense of authenticity to a released document of the company to maintain credibility.
A common seal is the official seal of a company. This common seal acts as the corporation’s official signature. Now, a common seal is no longer a requirement. However, it is still used in certain industries or companies. For example, it is still used for bank accounts and other smaller corporate accounts. For companies’ legal documents, they now can be released by the authorization of an appointed authorized people of a company, such as a director or a limited liability partnership’s partner.
A common seal is used for important business transactions. It is not to be used for meeting minutes recording or service level agreements. A common seal also cannot be used for vendor contracts. Most importantly, a common seal should never be used without approval beforehand. Any uses of the common seal must be documented in the Articles of Association or during board meeting’s minutes. It is also important to note that a common seal must be accompanied by the CEO or president’s signature.
A common seal, despite having its power watered down now, still remains as the official mark of corporations or companies. It is still needed for the release of several legal documents and it remains an important part of board resolutions. A board resolution is only deemed valid with the common seal. In large companies, a common seal still holds significant importance, especially for those filing legal documents purposes.
In order to obtain a common seal for your company, you must first register your company according to the governing law. For Singapore, any company that wishes to operate within the country must be registered with ACRA, fulfilling all the requirements that already been set and to adhere without exception. After getting your company registered, you may start designing your common seal the way you desire it to be. Just remember to include the company name, company incorporation date, company symbol, and other critical elements that must be present in a seal. Go to an office supply store that is able to manufacture the common seal for you and choose the embosser of your choice, such as a handheld or desktop embosser device. The manufacturer will make your common seal. Then, it is ready for use. If you are unsure of the design of your seal, you may contact an incorporation service company for their insight regarding your problems.
Depending on the country you are operating in, there are different laws and regulations regarding the use of a common seal. Therefore, you must make sure that you are aware of the rules and regulations of the usage of a common seal that applies to your residing country. You have to fully understand the power and authority of the tool and not misuse it to avoid legal problems and tarnishing the image and credibility of your corporation.