Understanding the Importance of a Common Seal and Why You Need One

A company common seal in India is required if you’re running a business in India. Sometimes, it can be called a corporate seal too.

3E Accounting’s Stamp Seal Makers Services in India have professionals that can help business owners.


What Is a Common Seal?

A common seal I a stamp that is imprinted with your business’s legal name. The seal is going to act as evidence on legal documents that have been executed on your behalf. Only authorised personnel or officers can use this seal.

You would use a company common seal in India to stamp documents on behalf of your India company. By doing so, you are showing that your business officiates the documents.


Who Issues the Company Common Seal in India?

The seal is issued by the Institute of Company Secretaries in India. The seal can only be affixed if it has approval from the Board of Directors of a company. It makes documents legally binding, which is why only those with the proper authority can use it.


Why Does a Company Need a Common Seal?

A common seal allows your business to enter legal agreements when needed. It is used as your company’s signature. Any document with your stamp on it is considered legal and you are obligated to abide by the terms agreed upon. It can only be used in a manner approved by the Articles of Association and Companies Act 2013.

If you put your seal on any document, it makes it legally binding. The common seal must be adopted by a Board resolution. Usually, the seal is adopted at the first board meeting. The impression is made part of the minutes of the meeting.


Why a Common Seal is Important?

A company common seal in India has several benefits. Its primary importance is authenticating deeds and documents, making them authoritative. The seal acts as an assurance that documents can’t be forged easily. The seal is only used by a few, selected employees in the company, thus ensuring security.


What Kind of Documents Have a Company Seal?

Per the Companies Act 2013, the following documents must have a company seal:

  • Certificate of shares issued by the company
  • Certificate of stock issued by the company
  • Power of attorney for deed execution
  • Power of attorney granting a person authorized to use the seal outside India
  • Documents required by Liquidators for company wind-ups.
  • Reports for Inspectors under Section 223 (Companies Act 2013)
  • As a proxy instrument carried out by the body corporate


How Do I Get a Company Common Seal in India?

Securing a common seal in India is easy enough. It is available at your local office supply stores where you can choose your design and embosser. Common seals in India should be purchased.

Company Common Seal in India