In Companies Act of 2013, minimum paid up capital requirement for a Private Limited Company was Rs.1 lakh. A common seal is a rubber stamp carrying the words “common seal” and the name and business number of the business. Now, the use of common seal has been made optional. Now, with The Companies (Amendment) Act, 2015 coming into force the common seal is no more mandatory.it has been made optional. The company seal is a tool used to stamp or emboss your company's important documents in order to show the document is certified by, and agreed upon by, the Board of Directors of the company. It is recognised as a taxable entity in its own right. Company seal is now not mandatory under the Company laws of it's provided under the articles of association. It’s an association of individuals having a separate legal existence, perpetual succession and a common seal. A private limited company is limited by shares and is a separate legal entity from its shareholders. This has been amended, and as on date, there is no minimum paid up capital required for a Private Limited Company… All such documents which required affixing the common seal may now instead be signed by two directors or one director and a company secretary of the company. It was a clear indication of action on behalf of the company. A company does not need to have a common seal. But Considering the facts, the Common Seal … A common seal is also known as pocket seal or company seal … It is to be used in the manner prescribed in the Articles of Association and the Companies Act, 2013. But if your articles of association requires you , then you can … What is the Difference between Private and Public Limited Company? So you need not make one. The use of the company seal (and there often would only be one seal) meant that the company had come to a definite decision. It is the signature of the company to any document on which it is affixed and binds the company for all obligations undertaken in the document. Get all the Information Regarding Exemptions for Private Limited Companies. The answer to it is the common seal of the company which is used as the signature of the company, which binds the company for all the obligation undertaken by the company. Any document, on which the company’s seal is affixed and is duly signed by the authorized official of the company becomes … Requirements for a Company Seal (also known as Corporate Seal) By Devin Scott Tuesday, August 6, 2019 What Are Your Company Seal Requirements? As per the Secretarial Standards issued by Institute of Company Secretaries of India, Common Seal means, the metallic seal of a company which can be affixed only with the approval of the Board of Directors of the Company. The company seal is a tool used to stamp or emboss your company's important documents in order to show the document is certified by, and agreed upon by, the Board of Directors of the company. However, if your company … A company at its crux, is an artificial person created by law. All such documents which required affixing the common seal may now instead be signed by two directors or one director and a company secretary of the company. For many years UK common law held that a seal was necessary for contracts to be valid. If you own a Singapore company, be it private limited company or limited company, chances that you need to have a common seal for the company’s use to issue share certificates to its shareholders as well as for title deeds. The idea behind the seal was fairly simple. The exemption helps a private limited company to not consider any transactions entered into by a private company with its holding company, ... as per the Companies Act of 2013 the requirement for common seal … As a result, shareholders of a Singapore private limited company are not liable for its debts and losses beyond their amount of share capital. Common Seal Optional: CA 2013 required common seal to be affixed on certain documents (such as bill of exchange, share certificates, etc.) Requirements for a Company Seal (also known as Corporate Seal) By Devin Scott Tuesday, August 6, 2019 What Are Your Company Seal Requirements? a common seal of a private limited company is the official signature of the company being a separate entity. Though in Companies Act, 2013, a common seal was required for a Company to provide various authorizations and attestations on behalf of the Company which now has been made optional and the Director's signature is acceptable in lieu of the common seal of the Company.