Home/ Legal Documentation/ Account Opening Resolution

Account Opening Resolution – Board Resolution for Company Bank Account

An Account Opening Resolution is a formal resolution passed by the Board of Directors authorising the opening and operation of a bank account in the company’s name.

It identifies the bank, branch, type of account and authorised signatories, and specifies how the account may be operated. Required for current accounts, overdraft facilities and other corporate banking arrangements.

Board Resolution

Authorised Signatory

Operating Mandate

Current Account

Internet Banking

Certified Copy

Get Resolution Drafted Talk to Expert

Companies Act §179 Board Authority 100% Confidential

Need an Account Opening Resolution?

Share a few details — our team will draft the Board resolution and authorised-signatory mandate.

Full Name

Mobile Number

Email Address

Company Type

Account Type

Operating Mode

Purpose

Message

Your information is handled confidentially.

Overview

What Is an Account Opening Resolution?

An Account Opening Resolution is a formal decision of the company’s Board authorising designated persons to open a bank account, complete bank documentation, operate the account, sign cheques and issue instructions to the bank.

Companies Act §179

The Board exercises the powers of the company subject to the Act, Memorandum, Articles and applicable rules.

Bank Needs Corporate Authority

A company is a separate legal entity. The bank needs evidence that the person opening or operating the account has authority from the company.

Clear Mandate

Company Decision → Bank Selected → Account Type → Authorised Person → Operating Instructions

Board ResolutionBank Account

Why Is an Account Opening Resolution Required?

The company acts through authorised representatives. The bank needs evidence of that authority.

Separate Legal Entity

A company cannot act by itself — it acts through authorised persons.

Bank KYC & Mandate

Banks require corporate authorisation before opening or operating an account.

Clear Operating Mode

Single, joint or tiered signatory authority is clearly defined.

Board

Resolution

Internet Banking

Authority for corporate internet banking and online payments can be included.

Change of Signatory

Fresh resolution is used when signatories are added, removed or changed.

Corporate Records

Minutes and certified true copies are maintained under Section 118.

Key Clauses

Important Clauses in an Account Opening Resolution

Company & Bank Details

Company name, CIN, registered office, bank name, branch and account type.

Authorised Signatories

Full name and designation of each person authorised to operate the account.

Mode of Operation

Single, jointly, any two jointly, or tiered authority based on amount.

KYC & Document Authority

Authority to submit application, KYC, declarations and bank forms.

Cheque & Payment Authority

Who may sign cheques and issue payment instructions to the bank.

Internet Banking

Authority for corporate internet banking, user creation and fund transfers.

Our Process

How We Prepare Your Account Opening Resolution

Company & Bank Details

Collect company name, CIN, bank, branch and account type.

Signatories & Mandate

Identify authorised signatories and define single/joint/tiered operation.

Draft Resolution

Prepare Board resolution with clear authority and bank formalities.

Certified True Copy

Provide certified copy ready for bank submission.

Bank Documents

Documents Usually Required by the Bank

Certificate of Incorporation

Company PAN

MOA & AOA

Board Resolution

Signatory KYC (PAN / Aadhaar)

Registered Office Proof

The bank’s current KYC checklist should always be verified before submission. Some banks provide their own Board resolution format.

Clear Distinction

Board Resolution vs Bank Mandate vs POA

Particular	Board Resolution	Bank Mandate	Power of Attorney
Nature	Internal corporate authorisation	Operational instructions to the bank	Separate agency instrument
Who Creates	Board of Directors	Company + bank acceptance	Company / authorised person
Purpose	Authorise opening & operation	How the account is operated	Grant agency authority
Interchangeable?	No — they serve different functions and are not automatically interchangeable

Avoid These Errors

Common Mistakes in Account Opening Resolution

Wrong company name or missing CIN

Unclear signatory or operating mode

No authority to complete KYC / bank forms

Accidentally adding broad borrowing authority

Missing certified true copy for the bank

Using company Board format for LLP / partnership

FAQs

Frequently Asked Questions

It is a Board resolution approving the opening and operation of a bank account in the company’s name, identifying the bank, account type and authorised signatories.

For a company, it is generally passed by the Board of Directors under the Companies Act and the company’s Articles.

Yes, if properly authorised by the Board and accepted by the bank. The resolution should clearly state that the account can be operated by that individual.

Yes. The resolution and bank mandate should specify whether the account is operated by any one signatory, any two jointly, or both jointly.

Potentially yes, where the company properly authorises the employee (e.g. CFO or Finance Manager) and the bank accepts the mandate.

No. An LLP does not have a Board of Directors like a company. Appropriate authority should be derived from the LLP Agreement and partners/designated partners.

Section 175 of the Companies Act permits Board resolutions by circulation subject to the statutory procedure. The company should also check its Articles and bank requirements.

A fresh resolution and the bank’s change-of-signatory documentation should generally be submitted. The bank mandate must be updated.

Ready to Prepare Your Account Opening Resolution?

A proper resolution should clearly establish: Company → Bank → Account → Signatory → Authority → Operating Mode. Get it drafted correctly before submitting it to the bank.

Company Details → Bank & Account Type → Authorised Signatories → Operating Mandate → Draft Resolution → Certified True Copy → Bank Submission

Get Resolution Drafted