A company seal is a device commonly provided by Company Formation Agents when registering new companies. It is used to emboss documents with the company’s name and registration number, effectively “sealing” the document. Traditionally, the company seal has often been used as an alternative to the signatures of the company’s authorized representatives.
Historical Context
Before the Companies Act 1985, the company seal had legal significance in the UK. It was considered legally binding when embossed on important documents, such as contracts or share certificates. However, with the introduction of the Companies Act 1985 (and subsequent amendments), the seal is no longer a mandatory requirement for limited companies. Instead, a company can legally seal a document with the signatures of two authorized officers, typically the company director and secretary.
Despite these legal changes, the company seal remains a widely used tool today. It still holds great significance in many countries, and UK companies engaging in international business often use the seal to finalize contracts or agreements in other jurisdictions where it may still be required.
How Does It Work?
The company seal functions as an embosser, not a stamp, meaning it creates a raised impression on paper rather than using ink. It consists of two dies—one with a raised impression of the company’s details, and the other with an inverted image. To use the seal, a piece of paper is inserted between the dies, and the user presses a lever or squeezes a plier. This action causes the two dies to come together, leaving a raised imprint on the paper.
This embossing process is a simpler, more modern alternative to traditional wax seals, which involve melting wax onto a document and then impressing it with a stamp. While wax seals offer a classic look, the company seal provides a more practical and mess-free method, particularly in situations where heating wax is not feasible.
If you desire the appearance of a wax seal, you can use self-adhesive seal wafers. These wafers mimic the look of wax, typically in red or gold, and can be placed on the document before embossing. The raised image on the wafer then resembles a traditional wax seal.
Types of Company Seals
There are two main types of company seals:
- Plier Type Seal
The plier-type company seal is the most affordable option. It features two dies—one on each side of the plier—and is ideal for quick, portable sealing. The user places the document between the pincers and squeezes the handles to emboss the paper. While economical and easy to use, this type of seal has limitations, such as difficulty embossing thicker paper or reaching the edges of documents. - Lever Type Seal
The lever-type seal is more robust and can handle thicker materials like heavy paper or card. This seal has one die at the base and another attached to a lever above it. When the lever is compressed, it exerts greater force, creating a clear, deep impression on the document. Lever seals are often seen as more professional and are available in various finishes, making them suitable for keeping on a desk or in a formal office environment.
Who Uses Company Seals?
Company seals are still commonly used by UK limited companies to emboss their name and registration number onto official documents like contracts and certificates. Although not legally required, using a company seal gives documents a professional appearance and reinforces the credibility of the business.
In addition to businesses, Notary Publics and solicitors often use seals to authenticate documents they have signed, sometimes adding their own logo or unique mark to the impression.
While the company seal is most commonly associated with businesses, it can technically be used by anyone and doesn’t necessarily need to include company-specific information. It can be customized to include any text or logo that the user prefers.
Where to Obtain a Company Seal
The most common suppliers of company seals in the UK are company formation agents, as the seal often accompanies the process of registering a new business. A basic plier-type seal, which only includes text (no logo), can typically be purchased for under £20.