Authorized Signatory Letter Format
[Date]
[Company Name and Address]
Dear Sir/Madam,
I, [Your Name], hereby authorize [Authorized Person's Name] to act as an authorized signatory on behalf of [Company Name]. [Authorized Person's Name] is authorized to sign, execute and deliver any and all documents, agreements, deeds, contracts, assignments, and other instruments on behalf of [Company Name].
This authorization is effective immediately and shall remain in force until revoked by me. The signature of [Authorized Person's Name] shall be binding on [Company Name] and treated as if it were my own signature.
Please acknowledge receipt of this authorization letter and confirm that [Authorized Person's Name] has been added as an authorized signatory.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Signature]
[Your Name]
[Your Position in the Company]
Formal Authorized Signatory Letter
Subject: Authorization of Signatory
Dear [Recipient Name],
This is to formally authorize [Name of Authorized Person] to act as the authorized signatory on behalf of [Company/Organization Name] for all documents and agreements pertaining to [Specify Purpose].
[Name of Authorized Person] is hereby empowered to sign, submit, and receive relevant documentation with full authority until further notice.
Please consider this letter as official confirmation of the above authorization.
Sincerely,
[Your Name]
[Designation]
[Company/Organization Name]
Provisional Authorized Signatory Letter
Subject: Temporary Authorized Signatory
Dear [Recipient Name],
This letter serves to authorize [Name of Authorized Person] as a temporary authorized signatory for [Company/Organization Name] during my absence from [Start Date] to [End Date].
The authorized person is permitted to sign and execute all documents and correspondence on behalf of the organization within this timeframe.
Kindly accept this as provisional authorization.
Best regards,
[Your Name]
[Designation]
Informal Internal Authorized Signatory Memo
Subject: Authorized Signatory Update
Hi Team,
This is to inform you that [Name of Employee] has been designated as an authorized signatory for [specific documents or processes] starting from [Date].
Please ensure all relevant approvals and documents are routed accordingly.
Thanks for your cooperation.
Regards,
[Your Name]
Official Bank Authorization Letter
Subject: Authorized Signatory for Bank Transactions
Dear [Bank Manager Name],
We hereby authorize [Authorized Person Name] to operate the bank accounts of [Company Name], including signing cheques, agreements, and executing banking transactions on behalf of the company.
This authorization is valid until further notice.
Kindly update your records accordingly.
Sincerely,
[Your Name]
[Designation]
[Company Name]
Corporate Board Approved Signatory Letter
Subject: Board Resolution - Authorized Signatory
Dear [Recipient Name],
Pursuant to the resolution passed by the Board of Directors of [Company Name] on [Date], we hereby authorize [Authorized Person Name] to act as the official signatory for executing contracts and documents related to [Specify Purpose].
Please recognize this authorization as valid and binding.
Sincerely,
[Your Name]
[Designation]
[Company Name]
What is an Authorized Signatory Letter and why it is important
- A formal document granting an individual the authority to sign documents on behalf of a company or organization.
- Ensures legal and procedural compliance.
- Establishes accountability and clarity in delegating signing powers.
Who should issue an Authorized Signatory Letter
- Company directors or executives.
- Managers or heads of departments with authority to delegate signing rights.
- Authorized personnel in organizations requiring official delegation.
To whom should an Authorized Signatory Letter be addressed
- Banks or financial institutions.
- Government departments or regulatory authorities.
- Internal departments, vendors, or third parties relying on the signatory’s authorization.
When to issue an Authorized Signatory Letter
- When assigning signing authority to new personnel.
- During temporary absence of the primary authorized signatory.
- For specific transactions, contracts, or projects requiring official signatures.
How to write and send an Authorized Signatory Letter
- Begin with a clear subject indicating authorization.
- Include recipient details and purpose of authorization.
- Clearly specify the authorized person’s name and scope of authority.
- Include duration or validity if temporary.
- Sign and date the letter.
- Send via official channels: printed, scanned email, or formal submission to concerned authorities.
Requirements and Prerequisites for an Authorized Signatory Letter
- Approval from management or board if required.
- Identification and designation details of the authorized person.
- Scope of authorization and validity period.
- Company letterhead and official seal if applicable.
Elements and Structure of an Authorized Signatory Letter
- Subject line highlighting authorization.
- Greeting or addressee.
- Opening paragraph stating purpose.
- Details of the authorized person.
- Scope and limitations of authority.
- Duration or effective period.
- Closing and signature with designation.
Formatting and style recommendations
- Use formal and professional tone.
- Keep it clear, concise, and unambiguous.
- Use official letterhead for printed letters.
- Include date, signature, and designation for authenticity.
Tricks and Tips for effective Authorized Signatory Letters
- Always verify the authority of the issuer.
- Attach a board resolution or approval if applicable.
- Keep a copy for records and future reference.
- Specify limitations clearly to avoid misuse.
Common mistakes to avoid
- Not specifying the scope of authority clearly.
- Failing to mention validity period or termination conditions.
- Sending unofficial or unsigned letters.
- Overlooking internal approvals or legal compliance.
After sending an Authorized Signatory Letter
- Confirm receipt with the concerned party.
- File a copy in company records.
- Monitor the use of delegated authority to ensure compliance.
- Revoke or update the authorization when necessary.
Pros and Cons of issuing an Authorized Signatory Letter
Pros:
- Provides clarity and legal backing for delegated authority.
- Facilitates smooth operations and transactions.
- Builds trust with external parties.
Cons:
- Risk of misuse if limitations are unclear.
- Requires diligent tracking and monitoring.
- Must be updated regularly to reflect personnel changes.
