Notarization Board Resolution For Bank Account Opening

Board resolution for bank account opening in the UAE is an important strategic step that requires careful evaluation of many factors, such as facilitating business transactions and different types of bank accounts, so in the following lines, POA&More experts explain to us a comprehensive guide on opening a bank account in the UAE.

What is the Board Resolution For Bank Account Opening?

The board resolution for bank account opening requires the submission of a set of documents and resolutions confirming the necessary powers and procedures. The board resolution, also known as the “Board Resolution,” is one of the most important of these documents. It is worth noting that the UAE is a prominent global financial center, so the decision to open a bank account there requires thorough study and meticulous legal procedures, starting with the board resolution.

What to include in a board resolution for opening bank account?

Contents of a board resolution for bank account opening: The resolution should typically include the following information:

Introduction: A list of the names of the board members present at the meeting at which the resolution was adopted.
Purpose of the resolution: Clearly indicate that the resolution is intended to approve the opening of a bank account in the company’s name.
Account details: Name of the bank, account type (e.g., current, savings, investment), name of the bank account (must be in the company’s name), and the currency(s) to be used.
Authorized signatories: Identify the individuals authorized to sign bank transactions on behalf of the company, stating their full names and positions (e.g., general manager, financial manager, board member).
Signing authority: Identify the signing authority, whether singly (by one person) or jointly (by two or more people).
Mandate: Authorizing the relevant individuals to submit the account opening application to the bank, complete all necessary procedures, and sign all required documents.
Date and place of meeting: Date and place of the board meeting at which the resolution was adopted.
Member Signatures: The board members’ signatures on the resolution.

Importance of board resolution for bank account opening

Legal validity: The resolution grants legal status to the process of opening a bank account in the company’s name.
Transparency: The resolution ensures transparency in the company’s financial transactions and identifies those responsible for them.
Legal compliance: Most UAE banks require a board resolution as an essential part of their account opening requirements for companies, to ensure compliance with local and international regulations.

Documents Required After Board Resolution for Bank Account Opening

After board resolution for bank account opening, banks require the following documents:

Board of Directors Meeting Minutes: A certified copy of the minutes of the meeting containing the decision to open the account.
Commercial License: A valid copy of the company’s commercial license.
Memorandum and Articles of Association: Company documents that define its legal structure.
Partners’ and Directors’ Passports: Valid copies of the passports of all partners and board members.
Authorized Signatures: Sample signatures of the persons authorized to sign transactions.
Know Your Customer (KYC) Form: Detailed information about the company, its activities, and sources of funds.

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

Yes, generally, a board resolution for bank account opening is one of the key documents required to open a corporate bank account in the UAE. Also known as a “resolution to open and operate an account,” it is an official document issued by a company’s board of directors authorizing one or more individuals (usually the general manager or authorized signatories) to open and manage the bank account on behalf of the company.

Read more: Drafting Board Resolution for Transfer of Shares in UAE

Why is this resolution required?

Legal Authority: The board resolution for bank account opening proves that the person applying to open the account has the legal authority granted by the company to do so.
Transparency and Accountability: The resolution ensures that the account opening process is conducted transparently and in accordance with the company’s internal controls, and clearly defines who is responsible for managing the account and financial transactions.
Bank Requirements: Banks in the UAE require this resolution as an essential part of their Know Your Customer (KYC) procedures to ensure compliance with banking laws and regulations and anti-money laundering.

Board resolution attestation in UAE

Board Resolution Attestation is a vital step for a company to open a bank account in the UAE. This document serves as official proof that the board of directors has approved the account opening and identifies the authorized signatories for transactions. The following points explain the importance of attesting a board resolution for bank account opening:

Legal Proof: This document serves as official proof that the board of directors has approved the opening of a corporate bank account.
Authorized Authority: The document identifies the individuals authorized by the company to conduct banking transactions.
Bank Requirements: All banks in the UAE require an attested board resolution to open a corporate bank account.
Fraud Prevention: This document ensures that banking transactions are authorized by the company, reducing the risk of fraud.

How to Draft a Resolution for Opening a Bank Account?

It is recommended to consult a legal consultant at POA&More to draft a board resolution certificate in Dubai that complies with the applicable laws and regulations in the United Arab Emirates. Below, POA&More experts explain a sample board resolution for bank account opening:

Sample board resolution to open bank account

Board of Directors Resolution of [Company Name]

Resolution Number: [Insert Resolution Number]

Resolution Date: [Insert Resolution Date]

Resolved by: The Board of Directors of [Company Name], a [Indicate Company Type, e.g., Limited Liability Company, Special Joint Stock Company], registered under [Insert Registration Number] in [Indicate City/Emirate].

Background:

Based on the company’s need to expand its business in the United Arab Emirates, it was decided to open a bank account to facilitate financial transactions and receive payments from customers and suppliers.

Resolution:

After discussion and consideration, the Board of Directors unanimously decided the following:

1. Opening a Bank Account:

Approval to open a bank account in the company’s name in a bank licensed in the United Arab Emirates.

2. Authorization to Sign:

I authorize Mr./Ms. [Name of Authorized Person], in his/her capacity as [mention position, e.g., General Manager, Chairman of the Board of Directors], holding passport/ID card number [insert number], to carry out all necessary procedures to open the above-mentioned bank account.

3. Authorization:

The authorized person is granted full authority to:

Choose the appropriate bank to deal with.

Sign all documents, contracts, and forms required by the bank.

Deposit and withdraw funds from the account.

Issue checks and money transfers.

Any other procedures required for opening and managing the bank account.

4. Authorization to Withdraw and Sign Checks:

The authorities for withdrawing and signing checks and money transfers are defined as follows:

[Type Option 1, e.g.,] Sole signature by Mr./Ms. [Name of Authorized Person].

[Or Option 2, e.g.,] Joint signature by [Name of First Person] and [Name of Second Person]. [Or the third option, for example:] Sole signature on transactions less than [enter amount] AED, and joint signature on transactions exceeding this amount.

5. Determining Banking Transactions:

Approval to carry out all banking transactions necessary for the company’s operations, including but not limited to: bank transfers, letters of credit, bank guarantees, and other banking transactions.

6. Effectiveness of the Resolution:

This resolution is effective from the date of its issuance.

Read more: Drafting Board Resolution for the Purchase of Property

Board resolution open bank account UAE

What distinguishes the board resolution for bank account opening in the UAE is that it is one of the basic and documented requirements imposed by the Central Bank of the UAE and commercial banks on companies to complete the account opening process. This resolution is an official document issued by the company’s board of directors that clearly defines the powers and responsibilities related to the bank account. What distinguishes the board resolution for bank account opening:

Legal and regulatory requirement: The board resolution is a mandatory document required by banks in the UAE as part of the Know Your Customer (KYC) and anti-money laundering and counter-terrorism financing procedures. This resolution ensures that the account opening process is completed with the official approval of the highest administrative authority in the company.
Identification of authorized signatories: The resolution clearly defines the individuals authorized to sign bank transactions on behalf of the company and the number of signatures required (e.g., one signature, two signatures, etc.), preventing manipulation and ensuring transparency in fund management.
Proof of authority: The board resolution for bank account opening proves that the aforementioned individuals have been granted full authority to conduct all necessary transactions, such as deposits, withdrawals, transfers, issuing checks, and obtaining credit facilities.
Determine the purpose of the account: The decision may include determining the purpose for which the account is opened (e.g., current account, payroll account, revenue account, etc.), which helps the bank understand the nature of the company’s financial operations and ensure compliance with regulations.

Advantages of POA&More in Board Resolution For Bank Account Opening in the UAE

The advantages of using a company like POA&More power of attorney Dubai to prepare a board resolution for an open bank account in the UAE can be summarized in the following points:

Specialized expertise: POA&More has extensive experience in legal and administrative procedures in the UAE, including drafting a board resolution for opening a bank account that complies with local laws and regulations. This ensures that the resolution is legally valid and acceptable to banks and government entities.
Legal compliance assurance: The company helps ensure that the board resolution for opening a bank account contains all the necessary elements and legal requirements for opening a corporate bank account, such as specifying the purpose of the account, authorizing authorized signatories, and specifying the type of account required. This avoids procedural errors that could lead to the rejection of the account opening application.
Time and effort savings: Instead of the company researching the legal requirements and preparing the resolution itself, POA&More handles this task, saving the company valuable time and effort that can be spent on its core business.
Comprehensive Services: The company’s services are not limited to drafting a board of resolution for bank account opening. They also include providing guidance on other required documents, such as the company’s certificate of incorporation, articles of association, and directors’ identification documents, facilitating a complete and organized application process.
Coordination with Relevant Authorities: The company coordinates with relevant authorities, such as banks or notaries, to ensure a smooth and speedy process, especially when it comes to authenticating the resolution for opening a current account, if necessary.

Using a specialized company like POA&More provides peace of mind for companies by ensuring that the board resolution account opening is prepared professionally and legally, expediting the account opening process and avoiding any potential complications.

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Frequently asked questions

How to write a Board Resolution for opening a bank account?

To write a board resolution for bank account opening in the UAE, the resolution must be formal and detailed. Here are the main steps and points that a board resolution for bank account opening must include:

1. Resolution Heading

Company Name: Write the full name of the company as registered.
Resolution Number: Provide a serial number for the resolution (e.g., Resolution No. 15/2025).
Date: Write the date of the meeting at which the resolution was made.
Venue: State the location of the meeting.

2. Resolution Text

Introduction: Begin by stating that the board of directors held its meeting to discuss opening a bank account. For example:

“Based on the invitation extended to the members of the board of directors, the meeting was held on [date] at the company’s headquarters to discuss the topic of opening a bank account for the company in the United Arab Emirates.”
Purpose of the Resolution: Explain the reason for opening the account, such as facilitating financial transactions, receiving payments, or managing capital.

Account Details:

Bank Name: State the name of the bank proposed for opening the account.
Account Type: Specify the account type (e.g., current account, savings account, business account).
Currency: If there is a specific currency, state it (e.g., AED, USD).
Signature Authority: This is a crucial point. You must determine who has the authority to sign checks and bank documents. You can choose from the following options:
Single Signature: One member of the board of directors or the executive director has the authority to sign.
Double Signature: Requires two signatures (e.g., the general manager and the chairman).
Specific Authority: A financial limit for signatures can be set (e.g., a single signature for amounts less than AED 50,000, and a double signature for amounts greater than that).

3. Approval and Approval

Approval of the resolution: The board of directors must decide to adopt this resolution unanimously or by majority.
Signatures: The board resolution for bank account opening must be signed by all board members present at the meeting.
Company Seal: The resolution must be stamped with the official company seal.

What is the validity of Board Resolution for opening bank account?

Typically, there is no specific expiration date for a board resolution for bank account opening in the UAE, as it is considered a permanent document as long as the authorization granted under it remains valid. Although the board resolution for bank account opening itself does not expire in most cases, the continued validity of a bank account depends primarily on the validity of the company’s trade license and the bank’s periodic updating of the required documents.

What is a corporate resolution for opening a bank account?

The UAE is a global investment destination, which is why many companies seek to open bank accounts there to take advantage of the many benefits it offers. Here are the most important reasons why companies choose board resolution for bank account opening:

Ease of doing business: The UAE is known for its open and business-friendly economic environment, with procedures and regulations that facilitate opening bank accounts and managing corporate finances.
Benefiting from the UAE’s geographical location: The UAE is a trading hub linking East and West, making it easier for companies with international businesses to conduct financial transactions and transfer funds efficiently.
Lack of income tax: The UAE does not impose corporate and individual income taxes, which helps companies increase their profits and free up more funds for reinvestment.
Stable banking system: The UAE’s banking sector is stable and strong, and banks are subject to strict government oversight, ensuring the safety of deposits and funds.
Access to advanced banking services: Banks in the UAE offer a wide range of innovative banking services that meet the needs of businesses, such as online banking, trade finance, and cash management services.