Is a Common Seal Still Needed in Singapore?

Getting a common seal was one of the administrative steps after company incorporation in Singapore in order for the company to be able to do its business.

A common seal is a tool that is used to emboss the company name and registration date on documents that are they’re going to release so that its authenticity can be confirmed. A company seal must include the company name and company registration date as the minimum requirement for it to be approved legally.

At the beginning, a common seal was more commonly used by law firms. But over the years, it was started to be used by many Singaporean companies in general. A company seal is very important as it represents the company’s approval or decision instead of one. The main purpose of a company seal was for legal documents release.

Recently, there was a new law in Singapore stating that companies and limited liability partnerships are no longer required to use the company seal for authorizing a document. Instead, a person of authority can simply sign the documents so that they can immediately get executed by the company and limited liability partnerships.

The authorized person of a company can mean the company director and secretary, or two directors of a company, or a director of a company along with a witness who can be trusted and able to attest to the signature given on the document.

For limited liability partnerships, the authorized person who can sign important documents are the partners of the limited liability partnerships with the presence of a witness who can attest to the signature.

This new law made many question whether a company seal is still required in Singapore. Basically, a company seal is now an optional tool in a company. Even though it is not obligatory anymore, there are still several conditions where it is needed. A company seal may be beneficial for government documentation or it can be simply needed by courier companies, telephone bills, or utility for authorization purposes.

A company director can decide whether the company should make a company seal or not. After all, they hold the authority to execute documents without a company seal or even the other way around.

Bottom line is, a company seal may still be needed at times. However, it is not a must in Singapore because in general, a company can execute documents only with signatures of authorized people that can take responsibility regarding the released document.  A company seal can strengthen the signature’s power on the document. By having a company seal along with the signature of the company’s directors, the document will seem more proper and credible, lessening suspicion of forfeit because signatures can easily be faked. However, it is not as simple as that to copy a company seal. Thus, it is very advantageous for a company to make a company seal. Make a company seal in a high quality so that it will be more difficult to fake. It will also enhance the professional image of the company.

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