Company Seal Requirements | Why Use a Company Seal?

By Devin Scott Tuesday, October 10, 2017

what is a company sealWhat Are Your Company Seal Requirements?

The company seal is a tool used to stamp or emboss your company's important documents in order to show the document is certified by, and agreed upon by, the Board of Directors of the company. 

The company seal contains the company’s name, its year of incorporation and the state in which the company was filed. Think of the corporate seal as the official signature of your company.

Some of the documents you might want to use a company seal on include:

  • employment and vendor contracts
  • minutes from Board of Directors meetings
  • leases
  • agreements of sale
  • loan documents
  • other commitments by the company

Any company may adopt a company seal, change it as it sees fit and use it as needed by affixing, impressing or reproducing it onto documents. This decision is usually made in the organizational meeting called by the initial director of the company; this meeting is normally held as soon as possible after the company is incorporated.

Once this meeting is held and the proper documents are signed, sealed and placed in the minutes book, the corporation or LLC possesses the authority to conduct the day-to-day operations of the business.

One of the first orders of business in this meeting is the issuing of stock (for a corporation) or issuing of membership certificates (for an LLC). The company seal can be used to stamp the stock or membership certificates, in tandem with the signature of the president. 

This is important because the certificates and the Board of Directors' resolution authorizing the issuance of the certificates are the evidence that prove ownership in the business entity.

Be sure the stock certificates are properly stamped and signed by the president, as this can make it harder for someone to claim ownership with fraudulent certificates, which does happen from time to time.

what is a corporate sealHow to Get a Corporate Seal

Do you need a company seal?  It’s not legally required, but many companies have chosen to adopt and use a company seal.  Harvard Business Services, Inc. offers a free digital seal to all new corporations and LLCs we formed on behalf of our clients. For more information on obtaining a company seal, or to order additional seals for you company, contact Harvard Business Services, Inc. via phone (800-345-2677) or live chat.

 

Disclaimer

THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.

More By Devin Scott

There are 15 comments left for Company Seal Requirements | Why Use a Company Seal?

Teesa said: Tuesday, March 19, 2019

What do I use the certificates for and how do I use the seal to stamp my papers

HBS Staff replied: Wednesday, March 20, 2019

Teesa, typically our clients will use certificates to show ownership in a company. If you have questions about how to use the seal, you are welcome to call or chat with us and we'll be happy to assist.

Dhiren Mehta said: Friday, February 22, 2019

We paid a company cash for a transaction and they used Company Seal to confirm payment. A month later we were asked to pay the amount as they had not received payment.Who is correct in this instance?

HBS Staff replied: Monday, February 25, 2019

Hi Dhiren - This seems like a matter for which you will want to consult with an attorney as we are unable to advise on your specific transaciton.

Anil Wadhwa said: Wednesday, November 7, 2018

Need a seal Manuel

HBS Staff replied: Wednesday, November 7, 2018

Anil, please call 1-800-345-2677 or email info@delawareinc.com during normal business hours, 9-5 Eastern, Monday - Friday, in order to request your digital seal. Thank you.

Felix Obi said: Tuesday, August 21, 2018

Hello, Our Company is fully registered with the Corporate Affair Commission, Nigeria. We are also fully operative. How can we registered with you guys so that we can get the free digital seal. Hope to hear from you soonest.

HBS Staff replied: Friday, August 24, 2018

You do not have to live in, or even visit, the state of Delaware in order to form a Delaware company. Other than residents of restricted countries (Cuba, Iran, North Korea and Syria), anyone can form a Delaware company and operate lawful business activities from anywhere in the world.

You do not have to be an American citizen to form and/or operate a Delaware company.

Dong Hizon said: Wednesday, June 27, 2018

Hi, I just want to ask how do you verify the stamp from PSB?

HBS Staff replied: Friday, June 29, 2018

We are not sure what you mean by "PSB." Please clarify and we'll be happy to help if we can.

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