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Account Opening Resolution

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.

  • The authorised signatories and the operating instructions stated precisely
  • A separate copy prepared for each bank you are opening with
  • Drafted by company secretaries in the form banks accept

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What an account opening resolution is

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.

Passed at
A board meeting
Addressed to
The bank
Authorises
Named people
To open and operate the account
Signed by
Those named in it
Copies
One per bank
A photocopy will not do
Format
Usually the bank’s own
Ask them first

Why companies have us draft it

  • Drafted by company secretaries who deal with bank formats constantly
  • The signatories and the operating instructions stated the way banks want them
  • A separate resolution for each bank, ready to sign
  • Drafted alongside the incorporation, where that is what you are doing
  • Thousands of businesses served across every state in India

What the drafting covers

  • A short call about the company, the bank and who will operate the account
  • The board resolution drafted in the form the minutes require
  • The authorised signatories, the operating limits and the mode of operation
  • A separate copy for each bank you are opening an account with
  • Reworked to your bank’s own format, where they have one

What to settle before drafting

  • Ask the bank for their format

    Most banks have their own wording and will reject a general resolution. Five minutes with your relationship manager saves a second board meeting.

  • Decide how the account operates

    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.

  • One resolution per bank

    Each bank wants its own original naming it. A copy of the resolution passed for another bank is routinely refused.

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Have questions? Find answers here

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Talk to an expert
  • Does the bank have its own format?

    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.

  • Can one resolution cover accounts at two banks?

    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.

  • Who has to sign it?

    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.

  • Do we need a new one if a signatory changes?

    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.

Get your board resolution drafted

In the form your bank accepts, with a copy for each of them.

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