What are the requirements for a corporate seal?
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 the company has been approved and certified by the Board of Directors of the company.
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.
These are some documents that you might use a corporate seal on:
- Documents of loan
- Sale agreements
- Minutes from Board of Directors meetings
- Employment and vendor contracts
- Other commitments by the company
Any corporation may use a corporate seal and do these things onto the documents if needed: affixing, impressing or reproducing. It is generally made during the organizational meeting and this meeting is normally held as soon as possible after the company is established.
After this meeting has been held and the appropriate documents have been signed, sealed and recorded in the minutes book, the company or LLC is authorized to carry out the daily operations of the business.
The issuance of shares (for a company) or membership certificates (for an LLC) is really important in this meeting. The company seal can be used to stamp stocks or membership certificates in parallel with the signature of the president.
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 the ownership with fraudulent certificates that occur from time to time.
If you have any further questions, you can simply contact us!