Open a Company Bank Account

How to open a company bank account

Banks often require a Directors’ Resolution for Bank Account Opening as proof that the company’s board of directors has approved the opening of the bank account.

A Directors’ Resolution for Bank Account Opening is a resolution required to be passed by the directors of a company to open a company bank account.

There are two options when using a Directors’ Resolution for Bank Account Opening:

• if a meeting of the board of directors to pass this resolution is chosen, it is necessary to record the minutes of this meeting and therefore a Board Minutes for Bank Account Opening is required; or
• if the board resolution can be passed by way of a written resolution, a Board Resolution for Bank Account Opening may be used.

What to include in a Directors’ Resolution for Bank Account Opening

1. Introduction: This section generally outlines the need for a new bank account and the resolution to open it.
2. Details of the Bank Account: This can include the name and location of the bank where the account will be opened, the type of account (business checking, savings, etc.), and any other pertinent details.
3. Authorised Signatories: The resolution typically identifies the individuals who will be authorised to sign checks, withdraw funds, and generally manage the account on behalf of the company. This could be the company’s CEO, CFO, or any other designated officer.
4. Approval: The resolution itself is the formal approval by the board of directors to open the bank account and designate the authorised signatories.
5. Signatures: The resolution is signed by the directors to indicate their unanimous approval.
6. Date: The date when the resolution was made and approved.

Do I need a directors’ resolution to open a bank account opening?

This type of resolution helps to ensure that the company’s financial activities are transparent and authorised by its board of directors.

The exact requirements for a Directors’ Resolution for Bank Account Opening can vary depending on the jurisdiction and the bank’s specific requirements.

There are two options when using a Directors’ Resolution for Bank Account Opening:

• If a meeting of the board of directors to pass this resolution is chosen, it is necessary to record the minutes of this meeting and therefore a Board Minutes for Bank Account Opening is required; or
• If the board resolution can be passed by way of a written resolution, a Board Resolution for Bank Account Opening may be used.

Once you open you account, you may need a board resolution to authorise operation of a company bank account.

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About Author

Daniel Walker

Daniel Walker is the Founder and Chief Executive Officer of Zegal, the trusted legaltech firm. Prior to founding Zegal, Daniel practised at DLA Piper, Stephenson Harwood and Clyde & Co, in Hong Kong, Singapore, and the UK.

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