A corporate seal, also known as a company seal, is an official stamp that authenticates corporate records. Historically, corporate seals served as formal company approval for physical documentation, but electronic signatures (e-signatures) have largely replaced them. However, a company might still need or choose to use a corporate seal.
Below, we'll discuss the traditional legal role of corporate seals, when it could be necessary, and how to get one.
Key takeaways
Corporate seals are physical stamps used to indicate company approval on important documents, such as corporate records, contracts, and other business agreements. A corporate seal stamp visually signifies a company's official endorsement.
Physical corporate seals were historically popular and were often sold as part of corporate kits for new companies. However, corporate seals are less common than they once were. Instead, modern signature laws and e-signatures have become standard practice for corporate documents and business agreements.
There might be rare cases where a corporate seal is required, such as in an international business transaction. In other cases, companies might use one purely out of tradition. If you need a corporate seal, you can typically order one online for your company at relatively low cost.
What is a corporate seal?
A corporate seal is a physical device, such as a stamp or an embosser, engraved with key company details (e.g., company name, state of incorporation, year formed). Traditionally, the mark or impression left by a corporate seal signified the company's formal approval of a document. It carried legal significance. The seal was often part of a company's corporate kit or formation records.
What is the traditional legal role of a corporate seal?
In the past, corporate seals commonly confirmed that a document was properly executed on behalf of a corporation. People physically stamped the seal on important documents such as stock certificates, contracts, real estate agreements, and official company filings.
Before modern signature laws became standard procedure, corporate seals were seen as a mark of formality. They were essentially viewed as a company's official signature.
Do modern startups need a corporate seal?
Modern startups typically don't need corporate seals. Most US states, including Delaware (a popular option for businesses that want to incorporate), don't mandate a corporate seal for a company to execute binding documents. Under current laws, e-signatures generally hold legal weight.
Why did corporate seals become less common?
Corporate seals used to be included in startup kits for corporations, along with stock certificate templates and a corporate minute book. Some legacy documentation and procedures and specific countries with different legal traditions (e.g., Japan) still reference official seals in their corporate documents. Overall, corporate seals are less common now.
One reason is the popularisation of e-signatures for legally binding documents. When documents can be legally signed electronically, physical corporate seals are unnecessary and impractical for digital workflows. Simplified corporate statutes also generally allow an individual to sign a document on behalf of a company, although those laws can vary by state.
When might a corporate seal be requested?
Despite the gradual shift away from corporate seals, certain situations still call for them:
Certain banks: Some older banks or individual branches might require a corporate seal for official documents as a matter of tradition or procedure.
Jurisdictions with different legal traditions: International commercial transactions might require some form of corporate seal. For example, businesses in Japan often use a corporate seal known as a "hanko" or "inkan" to stamp official documents.
Notarisations in specific states: A notary seal, or notary stamp, is a physical stamp or embossing tool a notary public uses to authenticate documents. It serves a different purpose from a corporate seal, although some companies might need notarised paperwork for business agreements. Notarisation rules can vary by state.
Traditional stock certificate templates: Some physical stock certificate templates reference traditional corporate seals as a long-standing business convention, although the underlying transaction would still be legally valid without the seal.
However, in the US, a corporate seal is usually kept for tradition rather than legal necessity. In most cases, a signature is all that's required for a document to be legally effective.
How do you get a corporate seal?
Corporate seals are relatively inexpensive to order. Certain online retailers sell both stamp and embossing options. Some e-signature software solutions also offer virtual corporate seals. You can attach these digital stamps to digital documents to signify official company approval and authentication.
How Stripe Atlas can help
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FAQs about corporate seals
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.