A corporate seal is a stamp or embossed seal (that leaves an indentation on the paper) that contains the name of the corporation.
Documents that are approved by the corporation are sometimes stamped or embossed by a corporate seal in order to confirm that the documents have been properly approved by the corporation.
Historically corporate seals were used on most contracts and share certificates. Today, they are not used as frequently, but are occasionally required by banks and land titles offices on certain documents signed by an authorized director of the corporation.
The following is an example of a corporate seal for the fictitious company “meerkat development ltd.”:
Do we still need corporate seal nowaday?
We find that fewer than 1 in 10 corporations actually requires a corporate seal. Most contracts these days can be signed without the use of a corporate seal and most small business owner prefer to avoid the unnecessary expense. But if you are dealing international trade, I will recommendate you to have one.