One of the costs you will face when setting up a company in Ireland is buying a company seal. In this blog post we will go through what a company seal is, if it is required, and what it is used for.
Requirement of a company seal
Section 43 of the Companies Act 2014 states that a company shall have a common seal or seals that shall state the company’s name, engraved in legible characters.
A company seal essentially is a premade stamp that you can imprint on to documents and looks like this:
What are company seals used for?
A company seal is used by limited companies when executing legal documents and authenticating transactions.
It gives parties an added level of comfort and security that the documents have been actually approved by the company representatives, as the company seal is usually kept in safe keeping, and may only be used at the authority of the directors/secretary.
While it is an old school way of going about things, it is still likely that you will need to use a company seal in your business. Although in recent years, the use of company seals has become less and less common due to the increasing use of electronic signatures and other forms of authentication like docusign.
Using a company seal outside of Ireland
According to section 44 of the Companies Act 2014, A company may, if authorised by its constitution, have for use in any place abroad an official seal which shall resemble the common seal of the company with the addition on its face of the name of every place abroad where it is to be used.
In plain English, this means that it is possible to have an additional company seal in a foreign location that will also bind the company into any legal agreements.
This can save a company a lot of time when trying to sign agreements, as there won’t be delays while waiting for the transportation of the company seal.
How much will a company seal cost you?
Company seals are a relatively inexpensive business expense and will set you back approximately €30-€60 including delivery costs.
Disclaimer: this blog post is for informational and educational purposes only and should not be construed as financial advice.