In the Arab business environment the seal holds a special place; many bodies do not regard a document as issued by the company unless it bears its seal alongside its representative's signature. As contracts move to digital form, the electronic seal has emerged as the digital counterpart of the company's paper seal: a mark showing that the document was issued by the company as a legal entity, not by an employee in a personal capacity. But this shift raises practical questions: what is the difference between the seal and the signature? Who is entitled to use the seal? And how do you prevent its use without permission?
In this guide we explain the concept of the electronic company seal, when you need it and when a personal signature is enough, how to set permissions for its use, and the mistakes companies make when adopting it, with examples and suggested wording.
First: The difference between the seal and the personal signature
Why it matters: A personal signature shows that a specific person approved the document. A seal shows that the company itself issued the document or is bound by it. The difference is not merely formal: an employee who signs without a seal may be met with the argument that they acted beyond their authority, and a seal without a signature may raise the question of who used it. This is why most companies combine the two in important contracts.
How to do it properly: Understand the seal as an additional layer on top of the authorized signatory's signature, not a substitute for it. A contract the company is bound by should ideally carry the signature of the authorized person in their capacity, together with the company seal. That way it is known who signed, and known that they signed on the company's behalf.
| Element | Personal signature | Company seal |
|---|---|---|
| Represents | A natural person | The company as a legal entity |
| Shows | The person's approval of the document | That the document was issued by the company or binds it |
| Used by | Its owner alone | Those authorized by a company decision |
| Usual use | All documents the person signs | Contracts, invoices, certificates, and official letters |
Common mistake: An employee puts the company seal on a document that concerns them personally, or signs a contract on the company's behalf with their signature alone with no capacity and no seal, leaving the obligation in doubt.
Example: A sales manager signed a supply contract with his personal signature, without stating his capacity and without a seal. In the dispute the company argued that the manager had no authority to contract at that size, and the supplier was drawn into a dispute over who was bound by the contract at all.
Second: When does a company need the electronic seal?
Why it matters: Not every document needs a seal. Putting it on every sheet lowers its value and raises the chance of misuse. Conversely, omitting it on documents where the other party expects it may lead them to reject the document or ask for a paper copy.
How to do it properly: Draw up an internal list of documents that carry the seal and another of those for which a signature suffices. Contracts with customers and suppliers, appointment letters, experience certificates, financial claims, and letters addressed to official bodies usually carry the seal. Internal correspondence and personal declarations are served by a signature.
- Sale, supply, and service contracts with external parties.
- Employment contracts, appointment letters, and experience certificates.
- Letters addressed to banks and government bodies.
- Formal quotes that bind the company.
- Handover and acceptance reports with customers.
Common mistake: Relying on the seal alone, without a signature, in important contracts because "the seal is enough." The seal shows the document was issued by the company, but the absence of a signature leaves a question about who approved it.
Example: A company used to stamp all its emails with its official seal, so employees began putting it on any document. When a new employee sent an erroneous quote bearing the seal, the customer demanded that it be honored as an official offer. After that incident the company limited the seal to a defined list of documents and people.
Third: Who may use the seal?
Why it matters: The paper seal used to be kept in the manager's cabinet or with one trusted employee. The electronic seal, if its permissions are not set, falls within reach of anyone who enters the company's account. This makes it more dangerous than the paper seal if its protection is neglected, and safer than it if permissions are set precisely.
How to do it properly: Set out in a written internal decision the names of those authorized to use the seal and the scope of each one's authority: the type of documents, the maximum contract value, and the cases that require additional approval. Then carry this decision over into the platform's own permissions, so that anyone not authorized cannot use the seal at all. On Wthaiq the account owner can set team members' permissions, including use of the company seal, and have sending go through approval before it goes out.
Suggested wording for an internal decision: "Mr./Ms. …, in their capacity as Finance Director, and Mr./Ms. …, in their capacity as Head of Legal Affairs, are authorized to use the company's electronic seal on contracts whose value does not exceed …; contracts exceeding that value shall be submitted to the General Manager for approval before they are sent."
Common mistake: Granting seal permission to the whole team to make work easier, then discovering sealed documents that nobody knows who sent.
Example: A company with five branches gave each branch manager seal permission with no limits. When one of them signed a long-term lease for new premises without management's knowledge, the company had to bear an obligation it had not decided on. After reviewing permissions, any contract above a certain value goes through management approval before it is sealed.
Fourth: Why is the seal not editable after first use?
Why it matters: The seal's value lies in its stability. If the seal's appearance or details could be changed after use, it could later be said that old contracts carried a different seal, or that the seal was altered to suit a particular document. This is why a serious platform makes the seal non-editable after first use.
How to do it properly: Review the seal's details carefully before first using it: the company name as in the commercial register, the register number, the tax number if it is to be shown, and the form you want. On Wthaiq the seal cannot be edited after first use, to protect the contracts that bear it. If the company's details later change, a new seal is created for future documents, and the old seal remains as it was on the earlier contracts.
Common mistake: Creating the seal in a hurry with incomplete details or an unofficial trade name, then discovering the error after a number of contracts have carried it.
Example: A company created its seal with its abbreviated trade name instead of its full legal name, then used it on dozens of contracts. When a bank asked for documents sealed with the legal name, it had to create a new seal and explain why the older contracts differed.
Fifth: The electronic seal and the legal framework in Egypt
Why it matters: Law No. 15 of 2004 regulating electronic signatures recognizes the electronic signature in civil, commercial, and administrative transactions, and this includes a signature issued by a legal entity through its representative. The Executive Regulations issued by Decree No. 109 of 2005 set the technical controls for evidentiary weight. The practical question is not about the seal's appearance but about proving that whoever used it was authorized and that the document did not change after it was sealed.
How to do it properly: Combine the seal with evidence of the surrounding circumstances: the identity of the employee who used it, the time of use through a trusted timestamp, and the document fingerprint that reveals any later alteration. If the company signs with a token issued by a certification provider licensed by ITIDA in its representative's name, that gives the signature the highest degree of evidentiary weight, and the seal remains the mark that the document was issued by the company.
Common mistake: Believing that a scanned image of a seal pasted onto a PDF equals an electronic seal. That is an image anyone can copy, and it carries no evidence of who placed it or when.
Example: A body received a letter bearing an image of a well-known company's seal, and it later emerged that someone had copied the image from an old document. A document sealed through a signing platform, by contrast, carries a verification number that can be consulted, which shows immediately whether the document was in fact issued by the company.
Sixth: Steps to adopt the electronic seal in your company
Why it matters: Moving to an electronic seal is not only a technical decision; it needs an internal policy defining who uses it and how. Companies that start with the policy before the tool avoid most problems.
How to do it properly:
- Issue an internal decision naming the authorized people and the scope of their authority.
- Review the seal's details with the legal department before creating it.
- Create the seal on the platform and set its usage permissions in line with the decision.
- Have contracts above a certain value go through approval before they are sent.
- Tell your usual external parties that your documents will arrive electronically sealed, and how they can verify them.
- Review the seal usage log periodically.
Common mistake: Failing to inform external parties, so some reject the electronic document because they are not used to it, or ask for a sealed paper copy.
Example: A company sent its suppliers a message explaining that its contracts would arrive electronically sealed with a verification number, and attached the steps for verifying on the public verification page. No supplier asked for a paper copy afterward, and some began verifying the contract themselves before starting supply.
Seventh: The seal in teams and multi-branch companies
Why it matters: In large companies more than one person in more than one branch may need to send sealed documents. If this need is not organized, either transactions stall waiting for one person, or the permission is opened to everyone.
How to do it properly: Distribute the permission by role, not by person: a branch manager seals their branch's contracts up to a set value, and anything above it goes through management approval. Make sure each document's record shows the name of whoever used the seal, so you know who is responsible for each obligation.
Common mistake: Sharing one account among several employees, so the trace of who used the seal each time is lost.
Example: A trading group with a branch in Cairo and another in Alexandria used to wait for the general manager's signature on every contract, however small. When it distributed seal permission to branch managers up to a set value, and had anything above it go through the general manager's approval on the platform, small contracts were completed the same day, while large ones stayed under management's oversight. The record of each contract now shows who sealed it and who approved it.
Eighth: What to do when a company's authorized person leaves
Why it matters: Authorized people change: a manager resigns, another is moved to a new position. If seal permission stays with someone who no longer represents the company, the seal may be used on a document management knows nothing about, and the company finds itself facing an obligation that is hard to disown before a party acting in good faith.
How to do it properly: Make revoking seal permission a fixed part of the procedure for ending any employee's service or changing their position, just like handing back keys and devices. Suspend their account on the platform, or remove the seal permission from it, on the day they leave, and update the internal decision with the names of the new authorized persons. Then notify the main external parties of the change of authorized person if they deal with them directly.
Common mistake: Postponing the revocation of permission until "there is time," so the account stays open for weeks after its owner has left.
Example: A procurement manager left his company, and his account stayed active for a month. Because the company reviewed the seal usage log weekly, it noticed a purchase order sent from his account after he had left, cancelled it before it was carried out, and added revoking permissions to its offboarding checklist.
Review checklist before adopting the electronic seal
- Is there a written internal decision naming those authorized and the scope of their authority?
- Do the seal's details match the commercial register?
- Do the seal permissions on the platform match the internal decision?
- Do large contracts go through approval before they are sealed?
- Is the seal combined with the authorized signatory's signature in their capacity?
- Does each sealed document carry a verification number and a timestamp?
- Have external parties been told how to verify?
- Do you review the seal usage log periodically?
Frequently asked questions
Does the electronic seal replace the manager's signature?
That is not recommended for important contracts. The seal shows the document was issued by the company, and the signature shows the person who approved it in their capacity. Combining them strengthens the evidence and cuts off argument over authority.
Can the seal be edited after it is created?
On platforms that protect the integrity of contracts, the seal cannot be edited after first use. If the company's details change, a new seal is created for future documents, and earlier contracts keep their original seal.
Is an image of a seal on a PDF an electronic seal?
No. An image can be copied and carries no evidence of who placed it or when. A seal applied through a signing platform is tied to a record showing who used it and when, and to a fingerprint that reveals any alteration.
Who decides who uses the seal?
The company itself decides, in accordance with its articles and internal regulations, and then carries its decision over into the platform's permissions. It is advisable for the decision to be written and approved by management.
Will the other party accept an electronically sealed document?
Most parties accept it once they can verify it. It therefore helps for the document to carry a verification number that can be entered on a public verification page to see its status and parties.
The electronic seal is a powerful tool when governed by a clear policy: who uses it, on which documents, and within what limits. If you set that policy and carry it over into the platform's permissions, your company's seal becomes safer than the paper seal in the cabinet. You can create your Wthaiq account and set up your company seal and your team's permissions.
This article is for general awareness and does not constitute legal advice.