The Companies Act 1985 abolished the need to affix the corporate seal to deeds. However, companies can choose to still use the corporate seal should they so wish.

Historically when the seal was used it denoted something that was significant for the company.  Whereas, a simple signature by the director was often used for less important matters.

Nowadays there are two main reasons why companies use seals:

1)    Certain documents, such as share certificates, may be executed with the company seal.

2)    Documents such as deeds may be executed with the company seal.

Many years ago the seal would make an imprint into softened wax.  Nowadays the modern seal makes an imprint onto the paper.  Often companies will use a red or gold wafer to imitate the old wax seal.  The wafers also have a practical use since they show up in faxed or scanned copies.

If you are incorporating your company online and are unsure whether you should purchase a company seal then please feel free to speak to one of our consultants on +44 (0)844 893 0808 or email us at formations@wisteria.co.uk.