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Category: Common Seal

Is There a Need for Both Common Seal & Company Stamps for Your Business in Singapore?

For anyone who runs a business in Singapore, both common seal and company seal are extremely important. A company, regardless of whether it is a private limited company or just a limited company, will need a Common Seal in Singapore. The purpose of this item is to issue share certificates to the company’s shareholders and also for use in title deeds.

The common seal or the company seal is used mostly for immovable property purchases besides the aforementioned certificates and deeds. The seal impression makes the document legal and binding even if it is only signed by two individuals. These can be two of the company’s directors or one director and the corporate secretary. The company normally registers the common seal that they will be using in all their transactions.

When to Use the Company Stamp in Singapore?

Besides the common seal, the company stamp is also used in legal transactions. Although in this case, it is used in purchase orders, leases, rentals, license applications as well as other transactions stipulated in the S144 of the Singapore Companies Act. The law also requires all Singapore businesses and companies to have their unique entity number printed on important documents such as bills of exchanges, invoices, publications and the like. In case the documents do not have this requirement, a rubber stamp with the said number can be used in its place.

These two items are deemed very important in any business or company in Singapore. This ensures that all businesses are transparent in their dealings and can be easily identified in any business transactions. New business owners are urged to comply with the stamp and seal requirements in order to avoid being penalized. Worst case scenario is that the business permits will no longer be renewed after violating such rules.

What is the difference between common seal and rubber stamps?

Singapore Rubber Stamps

Common seal (also known as company seal) is a seal use in the company or firm for major contacts, important documents, and shared certificates. Common seal comes with different types of designs, colors, shapes and sizes and can be customize too. Normally it takes about 3-5 working days to collect the common seal. For more complicated designs, it takes about a week to be done.

The cost of 1 common seal is approximately about $68 and above depending on the types of common seal.

Common seal have a lower and upper die that are pressed together to bring the dies together. It is easy to use and convenience to carry around. Rubber stamps usually comes with a varieties of colors, the most common ink color used by the company is black, blue or red. Black ink is more of photocopied, so it would be better to use blue color ink. It will look more presentable.

Common seal also provides a secure form of authentication of company businesses and transactions.

Singapore Rubber Stamps

Rubber stamp is waterproof and refillable and it is easy to use and can be carry around. Customers do not need to buy or bring ink pad along with them. The cost of one rubber stamp is about $19 and above. Additional company logo or images will be charged approximately about $5 depending on the size of logo and images.

Normally company rubber stamp should include registration number as it represents the company. As some companies tend to have the same name, with the registration number on the rubber stamp, it is better for verification.

 

What is the heaviest paper weight that we can use the common seal on?

20140125_103139
Using 70 gsm (Fig. 1.1)
20140125_103048
Using 250 gsm (Fig 1.2)

Common Seal also known as Corporate Seal are used as an affirmation of deal and comes with a level of significant. Where else a signature authorized by any members of the company only signifies as an act that is carried out on behalf of the company and are limited under the law of Agency.

In order to present the significance as well as the importance of that particular document, common seal should be used. However, considering that it is usually important documents, these papers are usually heavier than the usual ones.

Generally, papers from 70gsm – 120gsm is the most applicable for a common seal. Anything that is above 120gsm would probably not work out.

Here’s a small experiment on how it would turn out when common seals are being used in different gsm of papers.

According to the results, Fig. 1.1 and Fig 1.2 it shows an obvious results on how the thickness of the paper would affect the usage of the Common seal.

Why do we use a red sticker for common seal impressions?

3

2

There are a couple of reasons why red stickers are used for common seal impressions.

Historically in law, a seal on any legal instrument including a contract which is made under seal have great legal effect recognized by the courts of common law jurisdictions. At that point of time, courts mostly used wax seals and wax would normally come in red. So traditionally, people have been seeing documents affixed with red wax seals and have passed on the perception that red seals is a sign of legally recognized document giving people a sense of assurance and security.

Because of such perception, we mostly see documents in Singapore such as school certificates, share certificates and deeds affixed with red stickers for common seal impressions. Stationery shops, bookstores or common seal suppliers generally order red seal stickers as it is more popular amongst their customers.

With the improvement in technology and in order to safe keep the legal documents more easily, many law firms and companies in

Singapore have switched to using red stickers for the common seal impressions instead of wax seals. The red sticker is used to imitate wax seal impressions will allow the seal impressions to how better on photocopies.

There is also a price difference between red common seal stickers compared to gold and silver ones. Gold and silver common seal stickers are generally more costly compared to red common seal stickers because of higher material costs to make them.

In a way, the above reasons formed a habit amongst the suppliers and users to use red stickers for their common seal impressions compared to other sticker types.

Why do we use a red sticker for common seal impressions?

3

2

There are a couple of reasons why red stickers are used for common seal impressions.

Historically in law, a seal on any legal instrument including a contract which is made under seal have great legal effect recognized by the courts of common law jurisdictions. At that point of time, courts mostly used wax seals and wax would normally come in red. So traditionally, people have been seeing documents affixed with red wax seals and have passed on the perception that red seals is a sign of legally recognized document giving people a sense of assurance and security.

Because of such perception, we mostly see documents in Singapore such as school certificates, share certificates and deeds affixed with red stickers for common seal impressions. Stationery shops, bookstores or common seal suppliers generally order red seal stickers as it is more popular amongst their customers.

With the improvement in technology and in order to safe keep the legal documents more easily, many law firms and companies in

Singapore have switched to using red stickers for the common seal impressions instead of wax seals. The red sticker is used to imitate wax seal impressions will allow the seal impressions to how better on photocopies.

There is also a price difference between red common seal stickers compared to gold and silver ones. Gold and silver common seal stickers are generally more costly compared to red common seal stickers because of higher material costs to make them.

In a way, the above reasons formed a habit amongst the suppliers and users to use red stickers for their common seal impressions compared to other sticker types.

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