Is a Company Stamp Still Relevant in Singapore? Consider This Fact

 

Obtaining a company stamp was one of the administrative measures required after a company was formed in Singapore in order for it to conduct business.

 

A company stamp in Singapore is a tool that is used to emboss the company name and registration date on papers that are about to be released in order to verify their validity. For a company stamp to be legally accepted, it must have the company name and registration date as a basic prerequisite.

 

Initially, law companies were the ones that used company stamps more often. However, several Singaporean companies have begun to use it more and more as time passed. The significance of a company stamp is that it reflects the company's authorisation or judgment rather than just representing the decision of a person, for example, the company director. All in all, the primary function of a business stamp was to issue legal documents.

 

Companies and limited liability corporations in Singapore are no longer required to use the business stamp when approving documents, according to a new law passed in 2017. Instead, a person of authority may easily sign the papers. So, the process is now much simpler and quicker.

 

The signing of a document for authorisation must be done by appointed individuals of the company. So, not just anyone can do this. This is done to make sure that the legitimacy of the approval can be proven or testified.

 

The appointed individual of a corporation may be the company's director and secretary, or two directors, or a director and a witness who can testify to the document's signing.

 

The authorized person who will sign essential papers for limited liability partnerships is the limited liability partnership's partners in the presence of a witness who can testify to the signature.

 

Many people have questioned whether a company stamp is still needed in Singapore as a result of this new law. A company stamp is now essentially an optional tool in a business. Even if it is no longer required, there are still a few cases where it is still required.

 

A company stamp may be useful for official documents, or for certain industries to ensure that the authorization is done by people who can truly be responsible for the decision or action.

 

A company director has the authority to determine whether or not a company stamp should be made for the business. After all, they have the right to authorize documents without the use of a company stamp, or vice versa.

 

In the end, a company stamp can still be required at times. Although, it is also a fact that a company chop in Singapore is not a mandatory requirement anymore.

 

It is worth noting that a company stamp, along with the signatures of the company's directors, can make the certificate seem more official and trustworthy, reducing the risk of forfeiture since signatures can be easily faked. 

 

As a result, having a business stamp is extremely beneficial. Make a high-quality company stamp to make it more difficult to forge. It would also improve the company's professional reputation.