Law on Enterprises 2020 has officially taken effect since Jan 1st ,2021. Accordingly, there are significant changes regarding regulations on Enterprise’s seal.
1. Enterprises are allowed to self-determine their own seal
While the Law on Enterprises 2014 has limited the content displayed on the seal, the Law on Enterprises 2020 has abolished the mandatory regulations on information shown on the seal. According to Clause 2, Article 43, Law on Enterprises 2020, an enterprise is allowed to decide the type, quantity, form and content of their own seal.
This means that enterprises will have full discretion on the content of their seal without being bound by the law. In addition, enterprises are also fully empowered to decide the content displayed on the seal of branches, representative offices and other divisions of enterprises.
2. Eliminate the regulation on prior notification of seal samples before using
From Jan 1st, 2021, enterprises are no longer required to carry out procedure for announcing the seal sample to the business registration office for public posting on the National Business Registration Portal.
This is considered as a new, progressive and suitable regulation in simplifying administrative procedures, which helps to save time and effort in the process of implementing business-related procedures.
3. Changes related to the seal management, storage and usage
While Law on Enterprises 2014 stipulates that the seal must be managed in accordance with the company's charter, branches, representative offices and other divisions of enterprises now can self-promulgate regulations for using its own seal as per Clause 3, Article 43, Law on Enterprises 2020. However, it is only allowed to use the seal in transactions as prescribed by law.
In addition, according to Decree 130/2018/ND-CP, digital signature can be considered as a form of electronic signature that encrypts data and information of an enterprise and used to sign on types of digital documents of electronic transactions implemented via internet.
Accordingly, digital signature is recognized as seal of enterprises.
The inclusion of considering electronic signature as official seal of the enterprises encourage enterprises having more options in using seal instead of just using traditional engraved seal as currently.
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