The corporate seal is also known as a company seal. It is an official tool used by a company to stamp or emboss important documents of your company to show that your company has been approved and certified by the Board of Directors.
The company seal includes the name of the company, the year of establishment and the state where the company is located. You can consider it as your company’s official signature.
Some documents you can use your company seal with:
– Employment and vendor contracts
– Minutes from Board of Directors meetings
– Sales contracts
– Loan agreements
– Other agreements related to your company
Companies can get a company seal, make changes to it, and use them on the documents as they wish. Rules about the use of this company seal are usually set during the board of management meetings; this meeting is conducted right after the incorporation process is completed. It is quite common that the company seal is given to secretaries; however, the board of management can also provide it to another officer.
A corporate seal is sometimes requested by banks or other financial institutions.
Ensure that the stock certificates are properly stamped and signed by the president; because this may make it difficult for someone to claim ownership with fraudulent certificates that occur from time to time.