A common seal is known for its purpose of authorizing documents that are to be executed or issued by a company. In the past, it was absolutely mandatory to have a common seal for this sole purpose. However, now, after a new law and regulation, a common seal is no longer a requirement for a document to be authorized. Instead, the signature of the company’s director is sufficient. Because of this, the importance of a common seal has slightly watered down. However, it does not mean that a common seal is entirely forgotten. In fact, many companies still request for the manufacture of common seal for their organization. Many business owners are aware of the many advantages of owning and using a common seal. Are you curious about them too? Find out about them here in this article.
1. A common seal gives off the right impression
Using a common seal on documents that are issued by the company will make your company look more professional from the way you handle even the details in a work. The document itself will look more elegant and proper, and it surely will leave a stronger impression that lasts longer in the mind of the recipient of the document. If the recipient is impressed, then you may have a greater chance to build a better business relation, which is very important in ensuring the long and smooth run of a company and business in the long term.
2. A common seal can substitute signatures
In certain emergencies, a common seal can come in handy. Documents only need the signature of the company directors. But what if none of the directors are present in the company due to certain reasons, but a document urgently needs to be issued? The company director can order the company secretary to use the common seal as the substitute for their signature. With their approval, this can be done, and it is acceptable.
3. A common seal helps in avoiding mistakes
People often forget reviewing a document and just sign it off. However, if you are using a common seal, you can be reminded to do a final check of the content of the document and make sure that there is no mistake in it before you use the common seal to leave an emboss of the company logo on the paper. This way, you can always be sure that the documents your company releases are mistake free, avoiding misunderstandings that may happen from the possible mistakes.
4. Common seal for international business
Your country may not require a common seal to authorize a document. But what about a certain foreign company that you perhaps are going to work with in the future? There is a chance that they take great importance of common seals. Because of this, you must always be prepared. The business documents to make a deal between the two parties may need to be authorized with the common seal to be approved by overseas courts and laws.
