Facts About Company Stamp in Singapore and What is It Used For

 

If you want to start a business in Singapore, one thing you should remember is to have a stamp for your company in Singapore.  After all, there are many uses and benefits that you can gain from owning one. In fact, it is one of the most important things that should be on your to-do list when making a company.

 

So, let's learn about what is a company stamp and what makes it so important.

 

What is a company stamp?

In common law jurisdictions, including in Singapore, a company stamp or corporate stamp is a tool that should be owned and used. It may be used by a corporation to verify or approve valuable records like share certificates, contracts, or deeds.

 

How does a company stamp appear?

In Singapore, a business stamp is made of a metallic material that is used to emboss papers. To be considered legitimate, a business stamp's design must include the company's name and registration number. It is quite a simple tool with a straightforward way of using it.

 

When do you use a company stamp?

A company stamp is typically used for contracts that are required by statute to be stamped. For instance, a document executed by a corporation as a deed, such as those pertaining to banking and real estate transactions.

 

However, it is worth noting that, as of March 31, 2017, a company stamp is no longer required for certain forms of documents if the following conditions are met under section 41B of the Companies Act:

 

1. The secretary of the corporation and the company's director speak on behalf of the company.

2. On behalf of the company by at least two of the company's directors

3. Signed on behalf of the organization by a representative, with a witness to certify the signature

 

Furthermore, owning a company stamp is no longer mandatory for companies, according to Section 41A of the Companies Act.

 

If a person must sign a contract on behalf of more than one organization, the person must do so independently; otherwise, the document would not be deemed signed.

 

Even if company stamps are not used as often as they once were, they are still valuable, and many customers still seek company stamp manufacturing.

 

A company stamp can still be used for a variety of items, including:

 

1. Legal purposes

Many companies are still required to use a company stamp for legal reasons, even if it is no longer a must. If you have any concerns about the use of a company stamp on legal records, you can first check with a licensed lawyer so that you can be confident how to correctly place the company stamp on an important document. The use of a company stamp as a symbol of the corporation cannot be taken lightly.

 

2. Verify a document's authenticity

Through a company seal, you can verify the document's authenticity and prevent the recipient from receiving a forged document.

 

Forgery of documents and signatures' risk always exists, and the use of a company stamp will help to deter it. Since the pattern of a company stamp is difficult to duplicate, you can use it to verify the sender of a document's authenticity.

 

3. Maintain a professional appearance

On an important paper, including the business stamp's mark will effectively improve the sense of professionalism toward the document's receiver. By presenting yourself as knowledgeable and trustworthy, you will be able to gain the confidence of your corporate partners more quickly and expand the company exponentially.