Do I need notarization?

Not always. Notarization is required when the recipient requests it or when state or the receiving institution requires notarized proof; confirm with the recipient before executing to avoid rework.

Can the letter be electronic?

Yes. Electronic signatures are generally valid under ESIGN (15 U.S.C. ch. 96) and UETA where adopted. For consumer-facing records, follow ESIGN disclosure requirements and meet the recipient’s authentication needs.

How do I revoke an authorisation?

Issue a written revocation signed by an authorised officer and deliver it to the recipient and the authorised person; include an effective revocation date and retain proof of delivery.

Who can sign on behalf of the company?

An officer or person with corporate authority signs. For certain delegations, a board resolution or corporate minute showing delegated authority may be required for acceptance.

What supporting documents should I attach?

Common attachments include a corporate resolution, certificate of formation, ID copies, and any power-of-attorney; banks often require a recent corporate ledger or minutes.

How long is an authorisation valid?

Validity should be stated in the letter. If unspecified, recipients may refuse open-ended authority; best practice is an explicit start and end date or a defined revocation procedure.

Electronic Signature
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Miscellaneous
Business Authorisation Letter

Business Authorisation Letter

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS AUTHORISATION LETTER

This Business Authorisation Letter (the Agreement) is made and entered into by and between:

Authorizing Party (Business): Business Address: Registration / Tax ID (if applicable): Authorized Representative (Agent): Representative Address:

WHEREAS

WHEREAS, Authorizing Party: is duly organized and authorized to carry on business and seeks to appoint an agent to perform certain acts on its behalf; and

WHEREAS, Representative: has represented that they possess the experience and authority necessary to act in the capacities described herein; and

WHEREAS, the parties desire to set forth the scope, duration, duties, compensation and other terms under which the Representative will act for the Authorizing Party.

NOW, THEREFORE

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows.

SCOPE OF AUTHORIZATION

The Authorizing Party hereby authorises the Representative to act on its behalf to perform the following duties, tasks, and functions as agent and not as an employee. The Representative shall exercise such authority only to the extent expressly provided below:

Specific limitations:

PAYMENT TERMS

Compensation for the services and duties performed by the Representative shall be as follows.

Payment Amount (per term or engagement): Payment Schedule and Method: Late Payment Fee:

All payments due to the Representative are net of any applicable taxes unless otherwise agreed in writing. The Representative shall provide valid invoices in accordance with the payment schedule set forth above.

TERM AND TERMINATION

This authorization commences on: and, unless earlier terminated in accordance with this Agreement, continues until:

Either party may terminate this Agreement for convenience upon written notice to the other party delivered no less than days prior to the effective date of termination. Termination for cause may be immediate where a material breach is not cured within a reasonable period following written notice.

CONFIDENTIALITY

The Representative shall keep confidential all non-public information obtained from the Authorizing Party in the course of performing duties under this Agreement. The Representative shall not disclose such information except (i) with prior written consent of the Authorizing Party, (ii) as required by law or valid legal process, or (iii) to the Representative’s professional advisors who are bound by confidentiality obligations. Upon termination, the Representative shall return or certify destruction of confidential materials at the Authorizing Party’s request.

LIMITATION OF LIABILITY & INDEMNITY

The Representative shall perform duties with reasonable care and skill. Except to the extent caused by gross negligence or willful misconduct, neither party shall be liable to the other for indirect, incidental or consequential damages. The Representative agrees to indemnify and hold harmless the Authorizing Party from third-party claims arising from the Representative’s breach of this Agreement or negligent acts in performing the authorized duties.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of: without regard to its conflicts of law principles.

ENTIRE AGREEMENT

This Agreement, together with any exhibits or written schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior negotiations, understandings, and agreements, whether written or oral. Any amendment or modification must be in writing and signed by an authorized representative of each party.

ACKNOWLEDGEMENT

The Representative acknowledges receipt of this authorization and accepts the appointment subject to the terms and conditions set forth herein.

Representative Acceptance:

I, the Representative, accept the appointment and agree to perform the authorized duties in accordance with this Agreement.

Authorizing Party:

By:

Date:

Authorized Representative:

By:

Date:

What a Business Authorisation Letter is and when it’s used

A Business Authorisation Letter is a written statement from a company granting a named individual or entity the authority to act on the company’s behalf for a specific purpose. Typical uses include bank account access, signing contracts, submitting government forms, or collecting records. The letter describes who is authorized, the scope and limits of authority, effective dates, and required identifications or attachments. When properly executed it documents delegated authority and helps recipients verify the representative’s power to act on the company’s behalf.

Why you should prepare a clear Business Authorisation Letter

A concise, well-structured letter reduces processing delays, prevents disputes about authority, and provides clear evidence for banks, vendors, and agencies. It clarifies scope, duration, and required identity documents so third parties can accept or verify the representative quickly.

Who commonly issues and relies on these letters

Organizations of all sizes issue Business Authorisation Letters when delegating tasks that require formal proof of authority.

Business owners and corporate officers delegating banking or contracting authority to an employee or agent.
Accountants, attorneys, and registered agents acting to file tax or corporate documents on behalf of the business.
Property managers and real estate brokers handling closings, keys, or tenant matters in the company’s stead.

The letter protects both the delegating company and third parties by documenting the delegation in a clear, auditable format.

Core components a professional Business Authorisation Letter should include

Include specific, verifiable elements so recipients can confirm authority without additional back-and-forth.

Parties

Identify the authorizing entity by its full legal business name, entity type (LLC, Corp), and the authorised individual by full legal name and role; include employer ID or registration number where relevant to avoid ambiguity.

Scope

Describe precisely what the authorised person may do (open or manage accounts, sign a single contract, collect records) including explicit inclusions and exclusions to prevent implied or unlimited authority.

Limitations

State monetary caps, transaction limits, date- or task-specific restrictions, and whether sub-delegation is allowed; clear limits reduce risk for third parties and the authorizing company.

Effective dates

Set an effective start date and an explicit expiry or termination condition; an unclear duration leads to processing delays and potential liability disputes.

Authentication

Specify required identity documents (government ID, corporate resolution), whether notarization or witness signatures are required, and acceptable electronic authentication methods.

Supporting docs

List attachments such as corporate resolutions, board minutes, power of attorney, identification copies, and corporate filings that third parties should see to accept the letter as valid.

Step-by-step: preparing and issuing the letter

Follow these sequential steps to create, verify, and deliver an enforceable Business Authorisation Letter.

01

Draft the letter: State parties, scope, limits, and dates clearly.
02

Attach documentation: Include corporate resolution, ID, and any required filings.
03

Sign and notarize: Officer signs; notarize if recipient requires it.
04

Deliver to recipient: Send original or certified copy by the recipient’s accepted channel.

Typical routing and acceptance process for recipients

Understand the common acceptance flow so you can supply the right evidence at each stage.

Preparation: Company drafts letter and collects supporting documents.
Execution: Authorized officer signs; notarization performed if needed.
Submission: Deliver to bank, vendor, or agency by method they require.
Verification: Recipient confirms identity and supporting corporate authority.

How to configure a digital completion workflow

Set up electronic fields and authentication to match the recipient’s verification standards.

Signature field placement	Place officer and witness signature fields where visible and required.
Authentication method	Select email link, SMS code, or stronger ID verification.
Conditional fields	Show notary block only when notarization is selected.
Audit trail	Enable full event logging and download of certificate.
Template naming	Save as 'Business Authorisation Letter' for reuse.

Digital signing and format considerations

Ensure the chosen platform stores tamper-evident signed copies, provides a certificate of completion, and meets any industry compliance needs such as HIPAA or 21 CFR Part 11 where applicable.

Formats supported: PDF, DOCX, HTML
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: Email, SMS, KBA options

Typical eSignature vendor pricing and feature snapshot

Compare common purchase and compliance dimensions across several vendors. signNow is listed first per platform comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Key risks if the letter is incorrect or incomplete

Bank refusal: Account access denied

Tax issues: Backup withholding triggers

Unauthorized acts: Civil liability exposure

Contract disputes: Enforceability challenged

Fraud exposure: Higher risk without identity proofing

Processing delays: Extra verification steps required

Common preparation mistakes to avoid

Using an informal or ambiguous scope that lets recipients interpret authority more broadly than intended, leading to disputes or rejections.
Omitting supporting corporate documentation such as a board resolution or corporate filings that many banks require to accept delegated authority.
Failing to match the corporate name exactly to formation or banking records, causing identity mismatches and processing delays.
Not confirming whether the recipient requires notarization, witnesses, or specific identity verification methods before sending the letter.

Practical examples of how organizations use a Business Authorisation Letter

Two common scenarios illustrate how content and attachments differ by use case.

Bank account authorisation

A small business authorises an operations manager to manage a corporate checking account and process payroll

Manager allowed to initiate transfers up to $10,000 per transaction
Attach corporate resolution and manager ID; bank accepted notarized letter and copy of the formation documents to open and operate the account.

Vendor contract signing

A company delegates authority to its procurement director to sign supplier agreements under $50,000

Authority limited to purchase contracts only
Include board resolution, procurement policy reference, and an expiry date; vendor required the officer’s notarized signature before performance.

Practical tips for fast, reliable acceptance

Follow these best practices to minimize rework and speed acceptance by third parties.

Confirm recipient requirements

Ask the receiving bank or agency what form, notarization, and attachments they require before drafting; follow their checklist exactly.

Use precise scope language

Limit the authorised actions and monetary thresholds to what is necessary to reduce risk and lower the chance of refusal.

Provide supporting corporate proof

Attach a recent certificate of good standing, board resolution, and ID copies to accelerate verification and reduce follow-up requests.

Preserve audit evidence

If signing electronically, enable an audit trail and preserve the certificate of completion to show intent, attribution, and timestamps.

Typical timelines for acceptance and processing

Expect processing times to vary by recipient type; build time for verification into your schedule.

Provide upon request:

Supply letter immediately when a bank or vendor asks.

Notary scheduling:

Allow 1–3 business days to schedule in-person notarization.

RON availability:

Remote notarization may be same-day where permitted.

Bank processing:

Allow 3–7 business days for account changes to complete.

Attorney review:

Allow 2–5 business days for legal review, depending on complexity.

Frequently asked questions about Business Authorisation Letters

Answers to common questions about form, authentication, and revocation.

Need help? Contact support

Do I need notarization?
Not always. Notarization is required when the recipient requests it or when state or the receiving institution requires notarized proof; confirm with the recipient before executing to avoid rework.
Can the letter be electronic?
Yes. Electronic signatures are generally valid under ESIGN (15 U.S.C. ch. 96) and UETA where adopted. For consumer-facing records, follow ESIGN disclosure requirements and meet the recipient’s authentication needs.
How do I revoke an authorisation?
Issue a written revocation signed by an authorised officer and deliver it to the recipient and the authorised person; include an effective revocation date and retain proof of delivery.
Who can sign on behalf of the company?
An officer or person with corporate authority signs. For certain delegations, a board resolution or corporate minute showing delegated authority may be required for acceptance.
What supporting documents should I attach?
Common attachments include a corporate resolution, certificate of formation, ID copies, and any power-of-attorney; banks often require a recent corporate ledger or minutes.
How long is an authorisation valid?
Validity should be stated in the letter. If unspecified, recipients may refuse open-ended authority; best practice is an explicit start and end date or a defined revocation procedure.

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