Importance of Company Seal
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by: rehashmorkey
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Word Count: 476
Date: Wed, 9 Nov 2011 Time: 7:48 PM
In business, we used many terms which we have not heard or know about. But, yet it is crucial for our business like company seal. The company or business which we are running is artificial and it cannot sign its contract of its own. Thus, it functions with the help of “seal”. A company seal is used as a substitute for signature. A company seal is just like a stamp on some legal documents of the company which is sign between the company and the third party.
In today world, a company often signs a agreement with the other company in that place company seal plays a vital role. The documents will only become legalized when there is company seal on it and if there is no company seal on the documents it will become non- authentic. Most of the organisations in the corporate are not used company seal but used the signature of a president or vice-president as the substitute of company seal. Still, on legal documents they require a company seal. In day to day process of the company one can eliminate the use of company seal but one have to bear the company on legal documents.
Thus, we cannot run our business without the company seal as company need to sign legal documents while running heir business. Also, we cannot run our business without the bank procedures like a company need to take loan to run its business or for its expansion or company need to open bank account for its savings. The foremost priority of the bank in the documents is the company seal. Banks do not except the company documents without the company seal. Even if you don’t use the company seal very often, it is necessary to have a company seal on the legal documents.
If you are running your business globally, you need to have a company seal in any case. The use of the company seal on the documents also convey a message to the third party that how important the documents is and should be read carefully. Also, company seal depicts that who is legitimating the documents. In earlier times, hot wax is used to show the importance of the documents but with the up gradation in technology there is no need to use hot wax.
The company seal contains the most important information about the company that is name of the company, its logo, patent number and the copyright date. It also prevents any type of fraud and reduces the risk of any problem. The company seal can be a rubber stamp or steel embosser. Both of them are legalised and acceptable. Thus, you have make the use of company seal to run your business and its importance cannot be underestimated as there is no substitute of company seal on legal documents.
About the Author
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