
Open A Business Bank Account In India: Step‑by‑Step Guide
Opening a business bank account in India is one of the first practical steps you take when you start a business.
4 min read
The board resolution a bank asks for before it will open an account in the company’s name. It names who may operate it, and one copy per bank is not optional.
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The board’s written authority for a company account to be opened and for named people to operate it.
An account opening resolution is written to a bank when an account in the name of the business needs to be opened by the board of directors. It is a resolution passed at a board meeting authorising certain people in the company to open and operate the company’s bank account.
It is used for opening the bank account of a private limited company, a one person company or a limited company, and it needs to be signed by the people named in it as authorised by the board of directors.
Where one or more accounts are to be opened at different banks, a separate copy is needed for each. That is not a formality: most banks also want the resolution in their own format, so it is worth asking your bank for their wording before anything is drafted.
Most banks have their own wording and will reject a general resolution. Five minutes with your relationship manager saves a second board meeting.
Singly, or jointly by any two. And whether there is a limit above which a second signatory is required. Both belong in the resolution, not in an internal policy.
Each bank wants its own original naming it. A copy of the resolution passed for another bank is routinely refused.
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Usually. Most banks issue their own wording for the resolution and prefer it to a general one, so ask before anything is drafted.
We will draft to their format where they have one, and draft a general resolution where they do not.
In practice, no. Each bank wants a resolution naming it, and a copy of one passed for another bank is generally refused.
The board can pass both at the same meeting; they just have to be two resolutions.
The people named in the resolution as authorised by the board, and it is usually certified by a director or the company secretary as a true copy of a resolution passed.
Yes. The bank is acting on the authority the board gave, so adding or removing a signatory needs a fresh resolution, submitted to the bank.
In the form your bank accepts, with a copy for each of them.
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