A company seal is a stamp that signs a document on behalf of a company. It can be affixed with an embossing tool that engraves a company’s details onto a document. Seals have historically been used to sign legal records, like contracts, deeds, and certificates.
Some businesses like to use them, especially if they are conducting business abroad or if they wish to exude an air of old-world authority. Below, we explain what a company seal is, its purpose, and how to use it. We also highlight the potential benefits of using a company seal nowadays to help you determine whether your business might need one.
What is a company seal?
Also known as a corporate or common seal, a company seal is a stamp that authenticates documents on a company’s behalf—like a corporate signature. It’s customised to each organisation and normally displays its registered name and incorporation number. Here are a few ways to use them:
- Signing a lease, contract, or agreement
- Signing a property deed
- Validating share certificates
- Authorising invoices or other financial transactions
- Conducting overseas business
- Signing board meeting minutes
- Signing articles of association
Over the years, numerous tools have been used to affix company seals (e.g. wax stamps), but the device you’re most likely to find today is an embosser. It’s a small clamp that sandwiches a piece of paper between two round plates, leaving the company information engraved in the document. See the feature image above for an example.
Company seals can come in various sizes (even pocket-sized ones) and produce stamps of different shapes.
Do Canada companies need company seal
In Canada, having a company seal is not legally required for most companies. Historically, company seals (also called corporate seals) were used to formalize official documents by affixing a mark that indicated the company’s approval. However, modern Canadian business laws and practices no longer mandate this requirement.
For federally incorporated companies, the Canada Business Corporations Act (CBCA) does not stipulate the use of a corporate seal. Similarly, many provinces, including Ontario and British Columbia, do not require companies to use a seal, though companies can choose to adopt one for ceremonial or traditional purposes.
In practice, most documents can be signed by authorized representatives of the company without a corporate seal, and these signatures are legally binding. If your company deals with international partners or certain banks, they might request a seal as part of their procedures, but that is rare.
It is not a bad idea to have one, in same case you need it. If you need one, you could find seal here.