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Board Resolution for Opening a Bank Account
CERTIFIED TRUE COPY OF THE RESOLUTION
Passed at the Meeting of the Board of Directors of the Company
CERTIFIED TRUE COPY OF THE RESOLUTION
Passed at the Meeting of the Board of Directors of the Company
Date of Meeting: __.__.______
Time: ______ (Hours)
Venue: Registered Office of the Company
SUBJECT: OPENING OF BANK ACCOUNT IN THE NAME OF THE COMPANY
"RESOLVED THAT pursuant to Section 42 and other applicable provisions of the Companies Act, 2013, and the rules framed thereunder (including any statutory modifications or re-enactments thereof for the time being in force), the approval of the Board of Directors be and is hereby accorded for the opening of a bank account with __________ (Name of Scheduled Bank) at __________ Branch, __________ (City/Location), for the purpose of receiving share application money, securities, adjusting amounts received towards allotment of securities, or otherwise for refund of share application money received from applicants under a Private Placement Offer of securities.
RESOLVED FURTHER THAT the monies received on account of share applications shall be utilised only for the following purposes:
- Adjustment against allotment of securities; or
- Repayment of application money where the company is unable to allot securities.
RESOLVED FURTHER THAT Mr./Ms. __________ (Name), __________ (Designation), and Mr./Ms. __________ (Name), __________ (Designation) of the Company be and are hereby jointly and/or severally authorised to:
- Apply to the aforesaid bank for opening the said account;
- Sign and execute all necessary application forms, agreements, and declarations;
- Submit all requisite documents and papers as may be required by the bank; and
- Perform all such acts, deeds, and things as may be necessary or expedient to give effect to this resolution."
For ________________
Signature: _________________________
Name: ________________
Designation: ________________
DIN: ________________
Board Resolution for Opening a Bank Account
Professional Format Guide for Indian Companies
Introduction
A Board Resolution for Opening a Bank Account is a formal document that records the decision of a company's Board of Directors to authorise the opening of a bank account in the name of the company. Under the Companies Act, 2013, every company must maintain a separate bank account for conducting its financial transactions. This resolution specifies the bank, branch, purpose of the account, and the authorised signatories.
This document is essential for statutory compliance and is commonly required during company registration, GST registration, and other regulatory filings. Banks require this resolution to verify that the Board has formally approved the opening of the account and to identify the persons authorised to operate it.
Benefits of Using a Standard Format
Using a professionally drafted board resolution format saves time and ensures accuracy in documentation. A standardised template minimises the risk of errors, omissions, or non-compliance with legal requirements while maintaining the legal validity of the document.
It provides a reliable framework that can be customised as per banking requirements without compromising statutory compliance.
Relevance to Company and GST Registration
Opening a company bank account is a key post-incorporation compliance requirement. After obtaining the Certificate of Incorporation, companies must file Form INC-20A within 180 days, declaring receipt of subscribed capital in a bank account held in the company’s name.
Similarly, during GST registration, proof of a business bank account may be required. Having a properly drafted board resolution and operational bank account ensures smoother compliance with registration and regulatory processes.
Board Resolution for Opening a Bank Account – Sample Format
CERTIFIED TRUE COPY OF THE RESOLUTION
Passed at the Meeting of the Board of Directors of the Company
Date of Meeting: __.__.______
Time: ______ (Hours)
Venue: Registered Office of the Company
SUBJECT: OPENING OF BANK ACCOUNT IN THE NAME OF THE COMPANY
RESOLVED THAT pursuant to Section 42 and other applicable provisions of the Companies Act, 2013 and the rules made thereunder, the consent of the Board of Directors be and is hereby accorded for opening a bank account with __________ (Name of Scheduled Bank) at __________ Branch, __________ (City/Location), for the purpose of receiving share application money, adjusting amounts towards allotment of securities, or refund of application money under private placement.
RESOLVED FURTHER THAT the monies received on account of share applications shall be utilised only for:
• Adjustment against allotment of securities; or
• Repayment of application money where securities cannot be allotted.
RESOLVED FURTHER THAT Mr./Ms. __________ (Name), __________ (Designation), and Mr./Ms. __________ (Name), __________ (Designation), be and are hereby jointly and/or severally authorised to apply for opening the said bank account, sign all necessary forms and agreements, submit required documents, and perform all acts necessary to give effect to this resolution.
For ___________________________ (Name of the Company)
Signature: ___________________________
Name: ___________________________
Designation: ___________________________
DIN: ___________________________
Frequently Asked Questions
1. Can a Private Limited Company have more than one bank account?
Yes. A company can maintain multiple bank accounts for operational purposes such as payroll, vendor payments, or investment receipts. Each account generally requires a separate board resolution.
2. How does opening a bank account help in filing Form INC-20A?
Form INC-20A requires proof that subscribed share capital has been received in the company’s bank account. A bank statement serves as evidence for this filing.
3. What documents are required to open a company bank account?
Documents include Certificate of Incorporation, MOA and AOA, Board Resolution, PAN of the company, identity and address proof of directors, and authorised signatory details. Banks may request additional documents.
4. How many directors are required to pass the resolution?
The quorum is one-third of the total strength or two directors, whichever is higher, as per the Companies Act, 2013, subject to the Articles of Association.
5. Can a director withdraw money from the company bank account?
Only directors authorised through a board resolution can operate the bank account. Unauthorised withdrawals may attract legal consequences.