Authorized Signatory in a Partnership Firm: Meaning, GST Declaration Format and Sample Template
When a partnership firm starts its business, it often needs to deal with government departments, banks, GST authorities and other institutions. Since a partnership firm has more than one partner, it is useful to clearly identify the person who is permitted to sign and submit documents on behalf of the firm. This person is generally referred to as the authorized signatory.
An authorized signatory in a partnership firm may be
a partner or, where appropriately authorized, another person who has authority
to act for the firm. For GST registration, the GST Portal specifically provides
for a Primary Authorized Signatory and identifies a partner as the relevant
stakeholder for a partnership firm.
If you are looking for a practical Sample declaration for
authorized signatory, this article explains what the document means, what
information it should contain and how it can be used for GST registration and
banking purposes.
Download Declaration for Authorized Signatory Format
Businesses often search for a ready-to-use Declaration for authorized signatory letter, Declaration for authorized signatory for partnership firm PDF. A downloadable template can save time, especially for small businesses and newly formed partnership firms.
Before using any Declaration for authorized signatory for
partnership firm template, replace all placeholders with the correct
information and ensure that the authorization matches the partnership deed and
the purpose for which the document is being submitted.
For website users, it is useful to provide both an editable
1. Declarationfor Authorised Signatory Letter Format Word version
2. Declarationfor authorized signatory PDF version.
What Is an Authorized Signatory in a Partnership Firm?
An authorized signatory is a person who has been given
authority by the partnership firm to sign documents and communicate with
government departments, banks or other organizations on behalf of the firm.
In many partnership firms, one of the partners is appointed
as the authorized signatory. For example, if a firm has three partners, the
partners may authorize one partner to handle GST applications, sign declarations
and respond to GST-related communications.
The authority should be consistent with the partnership
deed and the requirements of the concerned organization.
For banking purposes, RBI's KYC framework also recognizes
documents relating to a person authorized to transact on behalf of a
partnership firm.
Who Is the Authorized Signatory for a Partnership Firm?
There is no requirement that every partner must individually
handle every application or communication.
The partners can authorize a particular partner to act as
the authorized signatory for specific purposes.
For example:
- Partner
A – Managing business operations
- Partner
B – Authorized Signatory for GST
- Partner
C – Finance and accounting responsibilities
The exact authority depends on the partnership arrangement
and the purpose for which the authorization is being provided.
For GST registration, the GST Portal allows the business to
identify a Primary Authorized Signatory. For a partnership firm, the
portal also identifies the partner as the relevant stakeholder for the
registration process.
What to Write in an Authorized Signatory Declaration?
A good Declaration for authorized signatory format
does not need to be unnecessarily complicated. It should clearly establish who
is giving the authorization and who is receiving it.
A typical declaration should contain:
- Name
of the partnership firm
- Names
of the partners
- Name
of the authorized signatory
- Designation
of the authorized person
- Purpose
of the authorization
- Authority
to sign applications and declarations
- Authority
to submit supporting documents
- Signatures
of the partners
- Firm
seal, where applicable
- Acceptance
and signature of the authorized signatory
- Date
and place
This information makes the document easy for a bank, GST
authority or other organization to understand.
What Is the Format of the GST Declaration for Authorised Signatory?
A Declaration for authorized signatory GST is
generally prepared on the firm's letterhead and signed by the partners.
The document can state that the partners authorize a
particular partner to act as the authorized signatory for GST registration and
related GST matters.
The GST Portal's official document checklist recognizes a Letter
of Authorisation as proof of appointment of an authorized signatory.
The authorization can cover activities such as signing the
GST application, submitting declarations and documents, providing
clarifications and responding to communications relating to the GST
registration.
It is important to use the current GST requirements rather
than relying on an old sample. GST procedures and portal requirements can
change over time.
Is Authorized Signatory Mandatory in GST?
For GST registration, the application requires details of a Primary
Authorized Signatory. The GST Portal also provides specific procedures for
authentication of the Primary Authorized Signatory.
However, this does not mean that every partner in a
partnership firm has to be separately appointed as an authorized signatory.
The firm can identify the person who will handle the GST
registration and related communications.
The GST Portal's current guidance also explains Aadhaar
authentication requirements for partnership firms. Where Aadhaar authentication
is selected, the Primary Authorized Signatory and one partner may be required
to complete authentication depending on the circumstances.
Therefore, businesses should check the requirements
displayed on the GST Portal at the time of registration.
What Is Authorized Signatory Proof?
Authorized signatory proof is a document that
establishes that a particular person has authority to act on behalf of a
business.
For a partnership firm, the supporting document may depend
on the purpose.
Common documents can include:
- Partnership
deed
- Letter
of authorization
- Declaration
for authorized signatory
- Power
of attorney, where applicable
- Identity
and address documents of the authorized person
- Other
documents specifically requested by the bank or government authority
For banking purposes, RBI's KYC directions require documents
establishing the partnership firm's legal existence and documents relating to
the person holding authority to transact on its behalf.
The exact document requirements can differ between a bank,
GST registration and other institutions.
Sample Declaration for Authorized Signatory for Partnership Firm
A Sample declaration for authorized signatory for
partnership firm can be prepared in a simple format.
The declaration generally begins by identifying all partners
and then states that a particular partner is authorized to act on behalf of the
firm.
The authorization section may cover signing applications,
undertakings, declarations and other documents required for GST registration.
The authorized person should then provide an acceptance
confirming that they agree to act as the authorized signatory.
This creates a clear record that the other partners have
approved the appointment.
Declaration for Authorized Signatory Template
A Declaration for authorized signatory template is
particularly useful for newly established partnership firms because the same
basic structure can be adapted for different requirements.
For example, a firm may need an authorization for:
- GST
registration
- GST
amendment
- Bank
account opening
- Current
account operation
- Government
registration
- Business
correspondence
- Other
statutory applications
However, a single template should not automatically be
treated as sufficient for every institution. Banks and government departments
may have their own forms or additional requirements.
Authorized Signatory Letter Format for Partnership Firm for Bank
Banks may ask for an authorization letter when opening or
operating a current account for a partnership firm.
An Authorised Signatory Letter format for Partnership
Firm for Bank generally identifies the partnership firm, lists the partners
and specifies who is authorized to operate the account or sign banking
documents.
The bank may also ask for the partnership deed, PAN, KYC
documents and other documents. RBI's KYC directions specifically refer to the
partnership deed, PAN, names of partners and documentation concerning persons
authorized to transact on behalf of the firm.
Therefore, firms should always check the document checklist
of their particular bank before submitting the letter.
Summary View
An authorized signatory helps a partnership firm handle its
statutory, banking and business documentation in an organized manner. Instead
of requiring every partner to sign every routine document, the partners can
authorize a suitable person to handle specified matters.
A properly prepared Declaration for authorized signatory
for partnership firm format should clearly identify the firm, partners,
authorized person, purpose of authorization and signatures.
For GST registration, the GST Portal provides specific
requirements relating to the Primary Authorized Signatory and supporting proof
of appointment.
For banking matters, additional KYC and account-operation
requirements may apply. Therefore, businesses should verify the current
requirements of the relevant authority before submitting the document.
Also Read: Consent Letter or NOC for GST Registration and PAN Application – PDF & Word Format
Frequently Asked Questions
1. What is an authorized signatory in a partnership firm?
An authorized signatory is a person authorized by the
partners to sign documents and act on behalf of the partnership firm for
specified business, statutory or banking matters.
2. Who can be an authorized signatory in a partnership firm?
A partner can generally be appointed as the authorized
signatory. Depending on the purpose and applicable requirements, another person
may also be authorized to act on behalf of the firm.
3. What should an authorized signatory declaration contain?
It should normally contain the firm's name, names of
partners, authorized person's name and designation, purpose of authorization,
authority granted, signatures and date.
4. Is authorized signatory mandatory in GST?
The GST registration process requires identification of a
Primary Authorized Signatory. The exact authentication and documentation
requirements depend on the constitution of the business and the current GST
Portal procedure.
5. What is the GST declaration for an authorized signatory?
It is a letter or declaration through which the partners
authorize a person to act and sign on behalf of the firm for GST registration
and related GST matters.
6. Can the same authorized signatory letter be used for GST and bank purposes?
Not always. The basic authorization may be similar, but
banks and government authorities can have different documentation requirements.
A bank may require additional account-operation instructions or KYC documents.
7. Where can I get a Declaration for authorized signatory for partnership firm letter?
A partnership firm can prepare the declaration on its
letterhead using a suitable Declaration for authorized signatory for
partnership firm letter format and customize it according to the purpose
and requirements of the concerned authority.
8. Is a firm seal required on the declaration?
It depends on the requirements of the concerned organization
and the firm's documentation practices. Where the recipient asks for a seal, the
firm should affix it along with the required signatures.
