Stock Certificates and Corporate Kit – Is It Necessary For Business Sector


When you become an entrepreneur or plan on opening your own company, your shareholders educate you on a few important aspects that serve as the primary purpose in successfully running a business.

One of the important aspects that they consider is whether to adopt using of the company seal or corporate seal. However, the need to adopt company or corporate seal will be always based on the requirements that your company should meet. One must keep in mind that any paper is legalized only if it has the seal of your company.

Some of the aspects or otherwise called corporate kit that play a key role in business management are listed below.

Record Keeping

One of the items from the corporate kit that play a key role in maintaining business is maintaining a book. With the growing use of computer in the industrial aspects, it has become easier for any company to maintain electronic book with up-to-date information about minutes of the meetings, resolutions for the company that were finalized by the board of directors, laws that were removed or added to the list of rules and regulations of the company, etc.

Corporate Seal

Centuries ago, different companies used unique method of sealing their documents. They melted the wax and pour it on the paper, and then used their corporate seals on it to imprint the document. Although centuries passed by, but many basic things haven’t changed. With advancement of technology, what changed is the procedure to make any document legal using a corporate seal.

However, one must understand that the importance of sealed documents and unsealed papers vary according to the laws, as declared in different countries. Therefore consult your legal advisor before buying a corporate kit, be it online or from a store nearby.

Paper Stock Certificate

Stock certificate, as the name says is the type of document that declares the number of stocks or shares mentioned in it belongs to a specific person. Even though this is one of the ideas that were once in use, many states have declared that it is not required for the corporations to issue the stock certificate for each of the stock and shareholders belonging to their associations.

However, in some countries it has become mandatory that the stockholders are issued with the paper stock certificate. Such documents do not only the information about the number of shares that are in their possessions, but also about the laws, rules, regulations and restrictions, which are introduced and followed by every member of the company.

When you plan to establish your own business in any particular sector, it is necessary that you arrange for the corporate kits containing some important items such as corporate seal, three-ring binder, blank corporate stock certificates, etc, and other such legal documents. You can hire a legal adviser to help you choose the best corporate kit. Sometimes the three-ring binder can be replaced with minute book, but it serves the same purpose of documenting important events that your company organized.