Within your company, you may need to use a company seal.
Knowing how to use a company seal correctly is one of the dilemmas you may face if your company has a large number of documents that require approval.
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What is a company seal?
A company seal is a way to confirm that a document has been certified and accepted by all parties involved in the decision-making process. It is considered the company's official signature or mark. A company seal will include:
- The registered company name
- The year of incorporation
- The state in which it was legally filed
The company seal may only be used with the authorization of the company's officers. When the company seal is affixed to a document, the Manager's signature may also be required.
Traditionally, sealing wax was used to imprint the company seal on company documents. More common today is the use of two metal plates engraved with the company seal. Embossing leaves a clear mark on the paper when the plates are pressed firmly together. Alternatively, the seal can be applied using an ink pad and a rubber stamp. It can also be digitized, in which case it is referred to as an “e-seal”.
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When might you need a company seal?
Important documents that may require a company seal include:
- Employment contracts
- Agreements with suppliers
- Sales contracts
- Meeting minutes
- Leases
- Loan documents
- Government applications
- Legal documents
- Membership certificates
- Stock certificates
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Is a company seal necessary today?
As many companies evolve over time and transactions are conducted electronically, company seals are used less and less. Some states now recognize the signature of an individual who has been authorized to act on behalf of the company instead of a company seal. This is the case in Florida.
