Common Seal

The common seal, often referred to as the company or corporate seal, serves as the official emblem of a company. It includes the company’s registration details and name and has traditionally been used to authenticate documents such as contracts, share certificates, and deeds. However, marking a significant change in Indonesia’s corporate environment, as of 31 March 2017, the Companies Act no longer requires the use of common seals for companies and Limited Liability Partnerships (LLPs) in executing legal documents—a development reflected in Sections 41A, 41B, and 41C.
The Act introduces various alternatives to the use of a seal, including the signing by a director and a secretary on behalf of the company, a signature by two directors, or a director signing in the presence of a witness. These alternatives for signing are also applicable to LLPs. While some companies continue to keep their common seal for transactions involving foreign entities, the seal should be stored at the registered address when not in use, indicating a move away from tradition towards more practical approaches.