Board Resolution To Open Bank Account Template for England and Wales

A Resolution To Open a Bank Account is a corporate document that formally authorises your company to open a business bank account and establish banking relationships in England & Wales. It shows financial institutions that the board has properly exercised its decision-making powers under the Companies Act 2006 and gives banks the corporate authority they need before they will register and open a new account.

What is an LLC resolution to open a bank account?

An LLC resolution to open a bank account (also called an LLC bank resolution or company bank resolution) is the United States term for a company decision, recorded in writing, that authorises a limited liability company to open a bank account and names the people allowed to operate it. In England & Wales the equivalent document is a board resolution passed by the directors of a limited company. The core purpose is the same in both cases: to give the bank documented proof that the company (or its members) has agreed to open the account and has decided who can sign on it. If you are forming a company in England & Wales, use this board resolution rather than a US-style LLC form, because it references the correct company law and your articles of association.

When do you need this document?

You need this resolution whenever your company requires a new business bank account or wishes to modify existing banking arrangements. This includes situations where you're incorporating a new company and need to establish initial banking facilities, expanding operations and requiring additional accounts in different currencies or jurisdictions, changing banks due to better terms or service requirements, or adding new authorised signatories to existing accounts. Banks will invariably request this document as part of their account opening procedures to satisfy their regulatory obligations under the Money Laundering Regulations 2017 and to verify that the account opening has proper corporate authorisation.

What information does the resolution need to contain?

To open the account without delays, the resolution should set out clearly:

• The full registered name of the company and its registered number, as shown on the register at Companies House.
• The bank chosen and the type of account (current, deposit, or a foreign currency account).
• The authorised signatories by full name and position, and whether they can sign individually or jointly on behalf of the company.
• Any transaction limits, overdraft facilities, direct debit authorities, or online banking access being approved.
• The date the resolution was passed and confirmation that it was passed at a properly convened board meeting with the required quorum.

Banks compare these details against the company records they hold and the identity documents they collect, so accuracy on names and authority matters. If you also need to record who can sign contracts and other documents, a corporate resolution form for signing authority covers that wider authorisation.

What do banks require before opening the account?

Different banks set slightly different requirements, but most ask for the same core items before they will open a business account. Knowing what the bank will require in advance keeps the process moving.

• The signed, dated resolution authorising the account and naming the signatories acting on behalf of the company.
• Proof of the company's registration, including its registered name, number, and registered office (and, in the US, the LLC's registered agent details).
• Identity and address verification for each authorised signatory and any beneficial owner.
• A copy of the company's articles of association or operating agreement setting out signing authority.

Some banks also apply an account-opening policy or minimum deposit, and account fees and pricing vary between providers, so it's worth comparing terms before you open the first account.

Key legal considerations

The resolution must be passed at a properly convened board meeting with the required quorum as specified in your company's articles of association. Under the Companies Act 2006, directors have specific duties when exercising their powers, including acting within their authority and promoting the success of the company. The resolution should clearly identify authorised signatories and specify their individual and joint signing authorities, including any transaction limits or restrictions. You must ensure that the named signatories have the legal capacity to bind the company and that their appointment complies with your articles of association. The resolution should also specify the type of account, the designated bank, and any specific banking services required. Consider including provisions for online banking access, direct debit authorities, and overdraft facilities if needed.

Legal requirements in England & Wales

Under England & Wales law, the resolution must comply with your company's articles of association regarding board meeting procedures and decision-making processes. The Companies Act 2006 requires that directors' decisions be properly recorded and that the company maintains accurate records of board resolutions. Banks operating under the Financial Services and Markets Act 2000 framework must conduct customer due diligence checks, requiring them to verify the identity of authorised signatories and confirm the company's authority to open accounts. The Money Laundering Regulations 2017 mandate that banks obtain satisfactory evidence of the company's corporate structure and beneficial ownership information, and they may cross-check the company's tax and registration details. Your resolution should therefore include sufficient detail to satisfy these regulatory requirements, including full names and positions of authorised signatories and clear statements of their banking authorities.

How does this fit with other corporate resolutions?

A resolution to open a bank account is one of several decisions a board records in the ordinary course of running a company. For other formal company decisions, from appointing directors to approving significant transactions, you can start from a general board resolution template and adapt it to the specific decision being minuted. Keeping each decision in its own dated, signed resolution gives you a clean record if a bank, auditor, or counterparty later asks how a particular authority was granted.