In Japan, corporate seal used instead of signature to conclude contract. When people incorporate a company, they make three types of seals.

1. Representative’s Seal
This seal must be registered at the local Legal Affairs Bureau. The representative seal is used to validate agreements and contracts on the company’s behalf.

2. Seal Used for Bank Transactions
Although you can use the Representative’s seal for this purpose, most of the company makes a separate seal because the representative seal is very important and does not want to use it for the bank transactions due to the security reason.

3. Square Seal
The Square Seal is the most frequently used, for example, to place it on the invoices, quote etc. because some vendors or customers ask to place company’s seal on the invoice or quotation.