A company seal used to be very important in doing business. However due to legal provisions now, a company seal is no longer a mandatory requirement for a company to be able to issue or authorize documents. Two officers of a company or a single director can sign the document along with the presence of an independent witness. Even so, a common seal is still important for document authorization.
Other uses of a company seal are as follows.
A company seal will help your company exude a more professional image. Using a company seal makes you seem more formal and proper. You must make sure to have a good quality company seal and not use a cheap one. If you invest in an expensive and proper looking seal, your company will be recognized as more professional and the seal will give off an elegant image that is appropriate for doing business.
- Executing documents properly
With a company seal, you will be able to prevent improper execution of a document such as an invalid combination of signatories. It is important to make sure that the authorization of a document is done right and according to what’s planned.
A company seal is more convenient than having to acquire two signatures of a company officer with a witness and such. A company seal allows a single company representative to authenticate a document in a simple and quick way, thus saving time in authenticating company documents. It is very useful especially if the authorized person who is needed is away and can’t be reached promptly. In case of emergency, this will benefit you the most.
- International business purposes
In several countries, company seals are still required legally. If you wish to expand your business and work together with a foreign company, you must be able to fulfill this requirement of company seal. If you can’t provide what is needed, your legal documents won’t be able to be recognized as valid by overseas courts and lawyers.
- Security and control
A company seal is beneficial for protection against document forgery. Signature on a document can be faked easily. However, the design of a company seal might won’t be as simple to fake. A company usually only has a single seal, and it must be secured tightly. In order to avoid misuse of the seal.
Laws and regulations apply differently in each country. You must make sure that you understand what is allowed and not, what is required and not for the needs of your company regarding company seal uses. It is most important to ensure the legibility of your company seal and the company itself so that you won’t encounter legal problem in the future when you are doing business. Usually, in order to have a valid company seal, you must register with the government. After getting your company incorporated, you must apply with the government for your company seal and include the required information such as company name and company registration number.