The 3 Types of Seals Used for Company Operation
• In Japan, it is traditional practice to use a seal in place of a signature for many important documents in both businesses and households.
• Three types of seals are very important instruments for companies and are often stored in a safe deposit box in the office for safety.
• These three types of seals can be made for $100-200, with titanium and ivory as the most expensive versions.
Type 1- Corporate Representative Seal (Daihyo-in)
• This seal must be registered at the Legal Affairs Bureau under the name of the company’s Representative Director.
• This seal is used to legally sign off on contracts by using special red ink to make the seal impression directly on the documents.
• Important transactions such as large contracts or property registration may also require a seal certificate in addition to the seal imprint to finalize agreements.
Type 2- Banking Seal (Ginko-in)
• When you open the bank account, a bank seal needs to be registered at your bank.
• Your Corporate Representative Seal can also be used for banking, but because that seal is so valuable, companies typically create a separate seal to use exclusively for banking transactions.
• Using the Banking Seal and your official bankbook issued by your bank, you can withdraw and wire money from the corporate bank account.
• Japanese banks reject requests to register a signature instead of an official seal.
Type 3- Identification Seal (Kaku-in)
• This square-shaped seal is used for less formal situations than the Corporate Representative and Banking Seals.
• This seal is often passed to accounting staff for daily use on invoices, quotes, and similar documents to show official identification.