Authorised Signatory Letter Template for England and Wales

An Authorised Signatory Letter lets your company formally delegate signing authority to named individuals. Under the law of England and Wales, it serves as official proof that a designated person has the legal right to execute contracts, agreements, and other binding documents on behalf of the organisation. To be valid and enforceable, the letter should be consistent with the Companies Act 2006 and agency law principles, and it should sit alongside any board approval or corporate resolution your articles of association require.

What is an authorised signatory letter?

It is a written confirmation, issued and signed by an authorised company officer, that a specific person may sign on the company's behalf. The letter names the signatory, states their position, records a specimen signature, and defines the scope of what they can and cannot approve. Third parties such as banks, suppliers, and government bodies rely on it as evidence that the person contacting them and signing documents genuinely holds that authority. The spelling varies by region: "authorised" in England and Wales, "authorized" in US usage, and both refer to the same document.

What does authorised signatory mean?

An authorised signatory is a person granted formal authority to sign documents and commit the company to obligations on behalf of the company. Their role is defined by the letter: what they may sign, up to what value, and for how long. The authority can depend on internal approval limits, so a signatory approved for supplier contracts may not automatically be cleared for banking or loan documents.

When do you need this document?

You need an Authorised Signatory Letter whenever someone other than a director must sign important documents. This commonly arises when opening bank accounts, entering supplier or service agreements, or dealing with government agencies that require verified authority. The document supports remote operations, where a local representative needs clear authority to act. It is also useful when delegating authority to a member of the management team for a defined set of transactions, or when directors are unavailable but business must continue. Financial institutions in particular require this documentation before allowing a non-director to conduct banking transactions or sign loan agreements.

What should the letter contain?

A clear letter usually sets out the following:

• The full legal name of the company, its registered office address, and its company registration number.
• The full name, job title, and specimen signature of each authorised signatory.
• The scope of authority, listing the types of document the signatory may sign.
• Any financial or transactional limits on that authority.
• The effective date and the duration, whether ongoing, time-limited, or transaction-specific.
• Revocation and notification procedures so authority can be withdrawn cleanly.
• The signature of the authorising officer, typically a director or the company secretary.

Defining the scope precisely is what prevents unauthorised actions that could bind the company beyond its intended limits.

Worked example

Suppose Northgate Consulting Ltd (company number 09876543) needs its operations manager, Priya Shah, to sign supplier contracts up to £25,000 while the directors travel. The letter would name Northgate Consulting Ltd and its registered office address, name Priya Shah as Operations Manager with her specimen signature, state that she may sign supplier and service agreements up to £25,000 per contract, exclude banking and loan documents, run for six months from the effective date, and be signed by a director. A supplier can then verify Priya's authority against the letter before proceeding.

How does the approval and issuing process work?

Most companies follow a short internal process. First, the relevant director or the board approves the delegation, often through a resolution where the articles of association require it. Next, the letter is drafted on company letterhead, naming the signatory and their responsibilities. It is then signed by the authorising officer, dated with the effective date, and issued to the counterparty or held on file for verification. Where a bank or customer needs to confirm authority, they check the letter against the named signatory and the company's records. Keeping a central register of who is authorised, for what, and until when makes ongoing management and any future audit straightforward.

What are the signatory's responsibilities?

An authorised signatory must act within the scope set out in the letter and follow any internal policy on approvals and financial limits. Acting outside that scope can still bind the company under apparent authority in some situations, which is why clear limits and prompt revocation matter. The signatory should keep records of what they sign and confirm, when relevant, that anti-money laundering and identity checks have been completed before executing banking or payment documents. Handling personal data such as signatory names and contact details also brings data privacy duties under UK data protection law, so the register and letter should be stored securely.

What are the risks of getting it wrong?

A vague or missing letter creates real risk. If the scope is unclear, a signatory may commit the company to obligations it never intended, and a counterparty relying on apparent authority may still hold the company to the deal. If authority is not revoked promptly when someone leaves a role, they may keep signing on the company's behalf. Precise scope, financial limits, and a clean revocation process are what keep that risk controlled.

Legal requirements in England and Wales

Under the Companies Act 2006, the person granting authority must have the legal capacity to do so. Directors have inherent authority to bind the company, and that authority can be delegated through proper documentation. Executing the letter on company letterhead with the company registration number aids verification. Where the authorisation relates to financial services, it should be consistent with the Financial Services and Markets Act 2000. The letter should be detailed enough to satisfy a third party's due diligence while protecting the company from disputes about the extent of delegated authority. If you also need someone to represent the business more broadly, a letter of authority may be the more appropriate document, and related contracts such as a service agreement can then be signed under the delegated authority.