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.