Company Seal vs Company Stamp: What is the Difference

by | Business

company seal

If you are starting a new business or managing an existing one, you may have come across the terms “company stamp” and “company seal.” These two items play an important role in the day-to-day operations of a business, and they are often required for various legal and financial transactions. However, when registering a company, very few entrepreneurs can tell the difference between a company stamp vs company seal.

In this post, we’ll explore the key differences between a company stamp and a company seal, and why both are important for businesses of all sizes.

What is a Company Seal?

A company seal, also known as a common seal, is a device used to emboss or imprint the company’s name or logo onto documents to provide them with a higher level of authenticity. Historically, it was used to sign and validate contracts and legal documents. The company seal is usually kept in a safe or other secure location and can only be used by authorized personnel such as company directors or a person authorised to act on the director’s behalf.

In Ireland, companies are required to obtain a company seal under the Companies Act 2014. It must feature the company name engraved in legible characters.

Some of Chern & Co’s company formation packages include the option of obtaining a standard company seal. Authorised persons use the company seal to mark the following documents:

  • Share Transfers;
  • Company law documents;
  • Contract law documents;
  • Minutes Of Meetings;
  • Property law documents.
company seal
Source: Unsplash

What is a Company Stamp?

A company stamp, also known as a company rubber stamp or company chop, is a small tool used to imprint the official logo or name of a company onto documents or certificates. This is not a legal requirement, however, it can greatly simplify your office tasks. Company stamps can be used to leave a professional mark on documents that do not require an official company seal. 

Ordering a company stamp with a company logo can be a great tool for branding and marketing purposes. Not only it will help you look credible but also will help customers identify your company by associating the stamp with your brand.  

Company stamps can be made of rubber or plastic, and they come in various sizes and designs depending on the company’s needs.

company stamp
Source: Unsplash

Key Difference Between a Company Stamp and a Company Seal

So what are the key differences between a company stamp vs company seal? Here are a few points to keep in mind:

Purpose: The main purpose of a company stamp is to imprint the company’s logo or name onto documents, while a company seal is used to provide additional authenticity and validation to important legal documents.

Legal Status: A company seal is often considered a legal representation of the company and is required for various business transactions. However, a company stamp is not required by law and can be used to leave a professional mark on documents.

Design: A company stamp can be made of rubber or plastic and comes in various sizes and designs. A company seal is usually made of metal and is embossed or imprinted with the company’s name or logo.

Use: A company stamp is often used for day-to-day business transactions, while a company seal is typically used for more formal and important documents such as contracts or legal agreements.

Wrapping up on Company Seal vs Company Stamp 

To summarise, a company stamp and a company seal are both important tools for businesses, but they serve different purposes and have different legal statuses. While a company seal is a legal requirement for Irish companies Under the Companies Act 2014, a company stamp is used to provide additional validation and authenticity to legal documents. Understanding the difference between these two items is important for businesses of all sizes to ensure that they are meeting legal and regulatory requirements and maintaining proper business practices.

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