If you are thinking of starting your own company in Singapore, then one of the things that you also should consider is getting your own company stamp. If you are not very familiar with it, then let’s learn more about this small yet very useful tool.
What is a company stamp?
A company stamp or common stamp is a tool used in common law jurisdiction, including Singapore. A company can use it as an official stamp to validate or endorse important documents, such as share certificates, contracts, or deeds.
What does a company stamp look like?
A company stamp in Singapore is made from a metallic material which is used to emboss documents. The design of a company stamp should at least have the company’s name and the registration number to be regarded as valid.
When is a company stamp used?
A company stamp is mostly used for contracts that need to be under stamp according to the law. For example, a document executed by a company as a deed, for instance, ones that are related to banking and property transactions.
It is important to know that since March 31, 2017, a company stamp is no longer mandatory for those types of documents if for certain circumstances under section 41B of the Companies Act as follows:
1. On behalf of the company by the director of the company and the secretary of the company
2. On behalf of the company by at least two directors of the company
3. On behalf of the company by a director of the company with a witness who can attest the signature
Not only that, but section 41A of the Companies Act also says that it is not mandatory for companies to have a company stamp.
If a document has to be signed on behalf of more than one company by a person, then the person must sign the document separately, otherwise, the document won’t be considered signed.
Even though a company stamp is not used as much as it used to be in the past, a company stamp is still useful and a lot of people still make a request for company stamp manufacture.
Company stamp still has several uses, such as:
1. Legal Purposes
Even though no longer a must, a lot of businesses still are required to add their company stamp for legal purposes. If you are unsure about the uses of company stamp for legal documents, then it is important to first consult about it to your professional attorney so that you can be sure how to place the company stamp in a legal document properly because the use of a company stamp as a representative of the business cannot be taken lightly.
2. Ensure document originality
With the mark of company stamp, you can prove the document’s originality and avoid your recipient to get a fake document. Document and signature forgery often happens and the company stamp can really help to prevent it from happening. A company stamp’s design can’t be reproduced easily by other parties, so with this mark, you can confirm the originality of the sender of the document.
3. Appear professional
Including the company stamp’s mark on an important document can effectively increase the impression of professionalism toward the recipient of the document. By appearing professional and reliable, you can earn the trust of your business partners easier and grow your business more exponentially in a shorter time.