Singaporean Law Regarding a Company Seal Part One
If you are in Singapore and thinking of starting a business, you start to do your research about the market and how to actually register your company to the government. Then you notice that you might need a company seal (or common seal /corporate seal), but there is not much info about it. In this article, we will give you the details about the company seal in Singapore, especially the law regarding it.
Am I mandated to have a common/company seal if I want to start my business?
The answer is no, you are not mandated by the government to have a company seal. Based on section 41A of the Company Act “ A company may have a common seal but need not have one.” before 2017, all companies are mandated to have a company seal, however, the regulation changed in 2017.
So I don’t need one, right?
Technically yes, as mentioned above it is not mandatory however, having a company seal can be very beneficial for your business. A company seal act as the company’s signature, therefore you can execute a deed with a seal rather than asking for every executives’ signature. This is especially relevant if your company is growing and when there is no time to wait around, so everything can be quick and easy.
The company’s signature?
In short yes, based on section 41B of the Company Act, a common or company seal can replace the signatures of the following :
- On behalf of the company by a director of the company and a secretary of the company;
- On behalf of the company by at least 2 directors of the company; or
- On behalf of the company by a director of the company in the presence of a witness who attests the signature.
As you can see a simple company seal can take over these complicated steps, so having one is a really good investments, both for your time and resource.