In formal business, there is a tool that once held great importance. It was absolutely needed for authorizing documents and issue them. This tool is a common seal. A Singapore common seal is an official mark of a company. Because of legal provisions, documents that are going to be issued from companies now no longer to be authorized with a common seal. They only need the signature of an authorized people of the company, such as a director.
Although it is no longer a mandatory requirement in many countries, a common seal is possibly still beneficial for a company. If a company wonders if they should get a common seal, here are several uses of a company seal that are advantageous for the business that may convince the purchase.
1. Proper document execution
A common seal can help you in making sure that you aren’t making a mistake in executing a document. Before applying a company seal, you must be always reminded of making sure that there is no invalid combination of signatories, for example. Always remember to check everything and pay attention to possible mistakes before finally adding the common seal mark onto the document that’s going to be released.
1. Look more professional
Your company can appear more professional with the use of a company seal on the executed documents. Although it is not an obligation to have it added to the document, the presence of the seal can give off the impression of your company being more proper and formal. This should also be supported by making a high-quality set of common seal instead of a cheap and low-quality one. A more expensive seal with better quality will also highly likely to produce a more elegant looking seal.
It is not always the case, but sometimes in some countries that approve, the signatures of a company officer can be replaced by a company seal. However, some even require to have both on the document. In the case of the former, it is convenient because a document can still be executed without the presence of the director, for example, if they are out of town. They can simply approve the use of the seal and have the document authorized.
4. International business purposes
Although many don’t require the presence of a common seal on documents to be regarded as valid anymore, some countries still do think that it is important and mandatory. For countries that require company seals legally, you must be able to provide it if you wish to do business with them. If not, your legal documents won’t be recognized as a valid document by overseas courts and lawyers. Even if it’s not exactly mandatory, as stated in the first point, it is always advantageous to make your company look as proper as possible by paying attention to the littlest thing, such as this common seal. It gives a good finish and leaves a pleasant impression toward the prospect of your business and may affect their decision in doing business with you.