Some people may call it common seals while others know it as company seals or corporate seals. Did you know about that before? Usually, you can’t find it easily since common seals are only used on particular documents. Common seal is not the same as company stamps although they are both commonly used as an authorized signature. So, to provide you with more information about the common seals especially before you use them, here is a little information that will be needed!
1. Common Seals?
Have you ever seen the embossed company’s name or registration number on the document? A common seal or company seal is a tool that generates the embossed company’s information (name and registration number) on documents. Affixing the seal represents that the document is certified and verified by the decision-maker or board of directors. The embossed mark on the documents is created by two halves of the seal that is pressed together.
2. A Brief History of The Common Seal
Historically, common seals were utilized by organizations in the common law jurisdiction. The old seals usually used melted wax to make an impression on certain documents. Today, the common seal is simpler with only an indentation on the paper, or sometimes a red sticker is used as a red wax seal.
3. Are Common Seals Still Required?
Since March 2017, a common seal is no longer required for a Singapore company. Also, the execution of a deed needs no require the affixation of a common seal. But, for various reasons, a large number of companies still use a common seal now.
4. Some Reasons Why Companies Still Use Common Seals
Although it is not required to have a common seal, there are several reasons why most companies still use it. So, here are some reasons!
- International business
In some countries, companies still need a common seal. So, if your company does an international business, a common seal might be required. Today, many businesses have their own common seal as preparation if they have a business with international companies.
- Symbol of authenticity
Usually, common seals are applied to high-level documents as a sign of authenticity. That’s because sometimes the company stamp and the authority signature is not sufficient to make the crucial documents look more authentic.
You may know that signature or company stamp is easier to forge today. So, affixing the common seal can minimize the risk of document forgery. Because of that, the seal is frequently used on important documents.
5. What Documents Need to Be Affixed with Common Seals?
As mentioned before, seals can only be applied to high-level documents. Here are some examples of documents!
- Company resolution
- Real estate transfers
- Loan documents
- High-level contracts and deeds
- International documents, etc.
6. Required Information on Seals
There is some required information on the common seal. Here are all of them!
- Name of the company
- Incorporated year
- Official logo
- Registration number
- State where the company legally filled