For some people, common seal or company seal may sound unfamiliar since its application is quite restricted. Not all documents can be affixed using the common seal because only high-level documents are allowed to be signed by using it. But what is a common seal? If you have seen an embossed registration number or company’s name on certain documents, that is probably a common seal. So, a common seal is actually a tool that two halves of its seals are pressed together to create embossed information (e.g., name and company registration number).
The common seal or company seal is a way to represent that company or organization give their official approval. But why are only high-level documents allowed to be signed using a seal? Why should the seal be applied and used? So, to find out the answers to a few questions regarding the common seal here are several reasons why you need to consider using the seal and why it is important!
1. International Business
Many companies in several countries where the seal is no longer mandatory but still choosing to have it. There are various reasons why they keep using it, but one of the reasons must be because of international business. The common seal is still mandatory in some countries. Because of that, most companies prefer to have their own common seal if one day they will have a business with an international company.
As previously mentioned, a common seal can be applied only to certain documents, especially for the most important ones. Apart from the seal represents official approval of the decision-maker or the board directors, it also indicates a sign of authenticity! For vital documents, authenticity is something that really important. That is why on particular documents, many companies and organizations add the seal to make the vital documents look more authentic.
3. Minimize the Risk of Forgery
What if a high-level document is forged? It can be a nightmare! So, to minimize the risk of document forgery, the common seal is added. But why? Today in the digital era, a signature or company stamp is easier to forge and imitate. That is why affixing the seal is still used by many companies to decrease the risk of high-level documents being forged.
4. Substitute Signature
One of the reasons the seal is still used because it can substitute the signature of authorities. If the decision-maker is not present in the office and there are important documents that need to be signed immediately, then the seal can substitute the signature of the decision-maker or authorities. But it can be affixed only after obtaining prior approval of them.
So, after knowing several things about why many people still use the seal and why you need it too, here are a few tips before you can use it!
- Make sure you understand the state laws regarding common seal requirements because you need to know when and how to use it properly
- The seal on the document shows that the company supports the agreement. So, use it carefully and for company purposes only
- Know which documents need to be signed with the seal!