How to draft a Board Resolution to Open a Bank Account (Format)

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A board resolution (bank employees will often call it “BR”) is a resolution passed in a Board Meeting authorizing certain persons in a company to open and operate the bank account of a Company (Private Limited or Public Limited) or Limited Liability Partnership (LLP).

A company is considered a separate legal entity (consider it as another person), the board resolution is required for opening a bank account in addition to other documents. In case the company wants to open separate bank accounts with multiple banks, then separate Board Resolutions must be passed for each bank.

How to Draft Board Resolution for Opening Bank Account?

The board resolution for opening a bank account has to be used by a Private Limited Company, Limited Liability Partnership, Limited Company, Section 8 Company, One Person Company or Foreign Companies. The original copy of the Board Resolution for opening bank account has to be submitted with the bank. Companies can retain a photocopy of the resolution for future reference.

Executing Board Resolution for Opening Bank Account

After drafting the board resolution, it has to be printed on the letterhead of the company and has to be signed by all the directors (board of directors). In case of a One Person Company, the Board Resolution for Opening of Bank Account should be signed by the sole director and the shareholders of the company.

If you have just started your Private Limited Company with 2 directors and want to open a bank account, you can simply download the format of the board resolution and edit it in Microsoft Word according to your company. You can simply print it on company’s letterhead (you can easily create a letterhead in Word or download these pre-made letterhead templates for MS-Word), sign it (both directors have to sign) and affix your company’s seal (stamp over the signature of both the directors).

MS-Word Sample & Format of Board Resolution for Opening of Bank Account as per Companies Act 2013

Download Word       Download PDF

Download Word       Download PDF

Breaking Down the Board Resolution

Remember, when you edit the document, you have to change all the fields in red according to the details of your company. Moreover, you must go through the entire documents to check the singular or plural version of statements as if you have one director or one authorized signatory, the sentences will be using singular verbs. Otherwise, it will be using plural verbs. You have to check word with “slashes or /” carefully.

Authorized Signatory

Authorized Signatory is the person that you authorize to carry out financial transactions on behalf of the company. Either or all of the directors of the company can be the authorized signatory. Moreover, if someone is not on your board of directors, you can still make them authorized signatories. For example, you can make your accountant authorized signatory carry out day to day financial transactions. You can also ask the bank to set a limit on transactions carried out by each authorized signatory on an individual level.

Individually/Jointly

Individual mode of operation means that any one of the authorized signatories can use his signature to carry out monetary transactions including withdrawing money, writing cheques or other non-monetary transactions like password change, debit card request, etc. Joint mode of operation means that all the authorized signatories have to jointly sign a document to carry out monetary or non-monetary transactions.

Company Seal

Company Seal is the stamp of your company. All the directors in the board have to sign the Board Resolution to make it a valid document. In case, you have multiple pages in the document, the signature and seal has to be affixed on the end of every page. In the above case, there are three pages in document. The directors have to also sign at the end of Page 1 and Page 2 with company seal.

Board Resolution Format for Opening Bank Account in SBI

Almost all the private sector and public sector bank accept a similar format of the board resolution for opening a bank account. The above Board Resolution format will work with SBI (State Bank of India) as well. However, you may also ask SBI officials to provide you with the format of a Board Resolution in case they want something to be customized.

Board Resolution Format for Opening Bank Account in PNB

Almost all the private sector and public sector bank accept a similar format of the board resolution for opening a bank account. The above Board Resolution format will work with PNB (Punjab National Bank) as well. However, you may also ask PNB officials to provide you with the format of a Board Resolution in case they want something to be customized.

Board Resolution Format for Opening Bank Account in Bank of Baroda

Almost all the private sector and public sector bank accept a similar format of the board resolution for opening a bank account. The above Board Resolution format will work with Bank of Baroda as well. However, you may also ask Bank of Baroda officials to provide you with the format of a Board Resolution in case they want something to be customized.

Board Resolution Format for Opening Bank Account in HDFC

Almost all the private sector and public sector bank accept a similar format of the board resolution for opening a bank account. The above Board Resolution format will work with HDFC Bank as well. However, you may also ask HDFC Bank officials to provide you with the format of a Board Resolution in case they want something to be customized.

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Jyostsna Upadhyaya
Jyostsna is the correspondent for the category "Startup Stories"and "Womenpreneur". She has been writing for 7 years.

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