Importance of a Corporate Seal
A corporate seal is a wax or acrylic stamp that serves as an official signature on documents used by companies. It is a legally binding representation of a company’s identity and helps separate its crucial documents from those of other enterprises. A corporate seal allows legitimate documents to be quickly identified and authenticated and can be used in various applications such as conducting business transactions, opening bank accounts, and filing tax documents with the government.
How and When to Use a Corporate Seal
A corporate seal should be used when a company needs to give formal authorization on a document. In most cases, only one top-level company executive or a company’s board of directors will approve the use of a corporate seal. Typical documents bearing the corporate seal include deeds, leases, contracts, merger documents, agreements, certifications, and stock certificates.
Changing or Replacing a Corporate Seal
At times, companies may need to change or replace their corporate seal. This could be due to various reasons, such as changes in ownership, restructuring, or business expansion. In such situations, companies must first notify the relevant government authorities before changing or replacing their corporate seal.