I think the best way to put in a team system would be to tie it into outfits. you can make an outfit with a team tag on it and anyone who wears it, will be part of that team. (could also be banners or face paint)
Yes, if you want to be seen then why not let players learn a Sashimono blueprint and either buy a skin for it or paint it as a sign.
Sashimono poles were attached to the backs of the chest armor (dō) by special fittings. Sashimono were worn both by foot soldiers - including common soldiers, known as ashigaru, as well as the elite samurai - and in special holders on the horses of some cavalry soldiers. The banners, resembling small flags and bearing clan symbols, were most prominent during the Sengoku period—a long period of civil war in Japan from the middle 15th to early 17th century.
Thanks Wikipedia
And very handy if you are hiding behind rocks trying not to be seen
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