What a Stamp is Used for and When It is Required

A company stamp or chop in India is an imprint of the company’s legal name. It serves as evidence that a document or legal agreement is executed on the company’s behalf.

A company stamp or chop in India can only be carried out by those with designated authority. This includes authorised officers or agents because of the legal ramifications. Stamps or chop can sometimes be referred to as corporate seals. These stamps or chops are available in a wide range of colours and designs. You can personalise your stamp or chop per your company wishes.

If you plan to incorporate a company in India, 3E Accounting will give you the great cost-effective choice.


What It Used for

Usually, a company stamp or chop in India is used to stamp documents. It is meant to demonstrate that the company has given their seal of approval on a certain document officially.

The Institute of Company Secretaries India defines a stamp or chop as the company’s “metallic seal.” This means that it can be used only if the company’s Board of Directors approve since it acts as the legal signature of the company. Any documents with the stamp or chop are considered legally binding in India.


Is a Stamp or Chop Important?

Yes, it is since it has a lot of uses and benefits. Besides authenticating documents, stamps and chops, or company seals, are desired because they cannot be forged easily. This quickly eliminates the possibility of forged documents and manager signatures. There is a sense of security at play since only selected, authorised personnel will be in possession of the seal.


When You Would Need It

A company stamp or chop in India can only be used in the manner outlined by the Articles of Association and Companies Act 2013. The company stamp or chop must be adopted via a Board resolution. This usually happens at the company Board meeting. At the meeting, an impression of the stamp or chop should be made as part of the meeting’s minutes. This will indicate the stamp was adopted at that meeting.

In India, nearly all the organisations would use a stamp or chop. It will continue to be used until the time comes when we operate in an entirely paperless manner. If you plan to incorporate a company in India, a rubber stamp will be something you would need.

Company Stamp or Chop in India