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Published on March 25th, 2013 | by jp

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How Business Use Seals

A business seal is an official seal used by a company to validate certain types of documents. In the past seals were required by law for certain legal documents, but the law as it related to seals has been relaxed for many countries.

Seals carry more clout than signatures since they represent the company rather than the opinion of an individual signing on the company’s behalf. Seals are more important in some countries than others, so the method you use to validate the legitimacy of your business documents will depend on where your business is located.

Design

Unlike stamps, seals must have a fairly simple design so that it shows clearly when affixed to a document. You can use a monochromatic variant of your company logo along with the company name and some other decorative feature to make your seal unique.

Your seal must be easily distinguished from other seals, especially if there are companies with similar names and logos within your region. Once you’ve commissioned your seals, you need to keep them in a safe and secure place to prevent fraud. You won’t want an employee to use your business seal on documents that they’re not authorized to use.

How businesses use seals

As stated before, businesses in most countries do not have a legal requirement to sign documents under seal. A seal could just as easily be replaced by having two officers of a company sign the legal document. Another option would be to have the company director sign the document in front of a notary public.

That said some companies still elect to use seals, as a commitment to old formal traditions. They can be used when conducting international business. Some foreign traditions mandate that companies implement contracts under an official company seal. The seal is then used on agreements, contracts or for legally binding documents.

Lease managers use seals for lease contracts to transmit the serious nature of the document. Seals are also used on deeds by law in some countries. This is required to show that the deed was prepared by a company and not a real estate agent. The seal makes the deed and other related documents official and an accurate representation of the change of ownership.

Other common uses of seals are for use on stocks, bonds and securities issued by a company. Depending on where you live this may be required by law. The seal verifies the official nature of the document and places the person making the investment at ease. The seal is raised and should contrast sharply with the document itself, so it will be obvious when the document is copied.

The company seal should be easily identifiable. They are usually circular and embossed or shaped like a sticker attached to the document. A signature close to the seal indicates the name of the person who approved the document. This provides another layer of security to validate the official nature of the document.

Crystal has written this article for Stamps Done Right , leading supplier of corporate seals for new business and vendor of specialized stamps.

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