Almost every new company orders an Authorised Signatory stamp alongside its Director and Round seal stamps — but the stamp itself is only half the picture. Here's what an authorised signatory actually is, and how the role gets formally assigned.
What does "authorised signatory" mean?
An authorised signatory is a person formally given the legal right to sign documents, contracts, and applications on behalf of a company — approving payments, signing cheques, or representing the company before banks and regulatory bodies. Signing without this authority carries no legal weight on the company's behalf.
How is someone appointed as an authorised signatory?
Through a board resolution passed at a board meeting. The resolution names the individual, their designation, and the specific purpose — bank operations, GST compliance, signing contracts, or similar — and becomes part of the company's official records.
What does a board resolution for authorised signatory look like?
A typical resolution reads along these lines: "RESOLVED THAT [Name], [Designation], be and is hereby authorised to act as the Authorised Signatory of the Company for the purpose of [bank operations / GST compliance / signing agreements, etc.], and to sign and submit all forms, applications, and documents as may be necessary from time to time." This is a general template — for a company's actual resolution, it's worth having a company secretary or the incorporation professional confirm the exact wording matches the specific purpose and any bank or authority's format requirements.
Where is this resolution used?
Banks require it before allowing a current account to be operated, and it's commonly requested by government departments (GST, MCA, Registrar of Companies) whenever a company needs to confirm who's authorised to act on its behalf.
Why does the authorised signatory need a separate stamp?
Once someone is formally authorised, an Authorised Signatory stamp lets them mark documents consistently and quickly — invoices, approvals, correspondence — without needing to write out a full signature each time. It's the practical, day-to-day counterpart to the board resolution that grants the authority in the first place.