In Singapore, the use of a corporate seal, often referred to as a company seal or common seal, is not a legal requirement for most companies, and its purpose has evolved over the years. Corporate seals were more common in the past, but changes in company law and business practices have reduced their significance. Here is the status and purpose of corporate seals in Singapore:
- Historical Significance: Corporate seals were historically used to emboss or imprint the company’s official seal on important documents to authenticate them. They were often used for signing contracts, deeds, and other legal documents.
- Legal Requirement: The Companies Act in Singapore was amended in 2006 to eliminate the requirement for companies to have a common seal. This change was made to simplify business procedures and reduce administrative burdens.
- Optional Use: While not legally required, companies in Singapore may choose to have a corporate seal if their Articles of Association or internal company documents specify its use. In such cases, the seal can be used as a matter of company policy, but it does not have any legal significance beyond what is explicitly provided in the company’s internal rules.
- Company Policies: If a company decides to use a corporate seal, it should establish internal policies and procedures for its use, including who is authorized to use it and for what purposes.
- Authentication and Alternatives: In practice, the use of corporate seals for authentication has been largely replaced by the signature of authorized officers or the use of digital signatures, which are considered more convenient and secure.
It’s essential to note that laws and regulations can change over time. Therefore, it’s advisable to consult with a legal professional or the Accounting and Corporate Regulatory Authority (ACRA) in Singapore for the most up-to-date information and guidance on the use of corporate seals for your specific business circumstances. The purpose of a corporate seal in Singapore is typically associated with official documents and acts as a formal mark of authentication for the company.