Authorised Signatory In Gst

What Is a Declaration for Authorised Signatory Format?

A Declaration for Authorised Signatory is a formal document through which an individual, organisation, or company officially authorises another person to act on their behalf for specific activities or in particular domains. This declaration plays a crucial role in business, legal, financial, and governmental operations by offering legitimacy, responsibility, and operational clarity to the designated representative.

It is commonly required in processes like:

• Bank account operations

• Tax and GST registration

• Filing of official returns

• Contract execution

• Regulatory submissions

• Business correspondences

This document confirms the name, designation, and extent of authority of the person being authorised. The declaration also includes the duration for which the authorisation is valid, and whether it is general or restricted to specific tasks.

Purpose of an Authorised Signatory Declaration

The main intent of this declaration is to formally delegate power or responsibility from one party (the principal) to another (the authorised signatory), ensuring that actions taken by the representative are valid, legal, and binding. It also protects both parties by providing written clarity about the rights and responsibilities conferred.

Importance of an Authorised Signatory Declaration

1. Delegation of Authority
   It enables individuals or entities to appoint someone they trust to take decisions or perform certain activities on their behalf, especially when the original party is unavailable or wants to decentralise responsibilities.

2. Legal Validity and Binding Effect
   Any action taken by the authorised signatory—such as signing contracts, dealing with government departments, or performing financial transactions—is considered as if the principal themselves has taken that action. This makes it legally enforceable.

3. Operational Efficiency
   Delegating responsibilities through an authorised declaration improves workflow, avoids delays in approvals or sign-offs, and ensures timely execution of business processes.

4. Transparency and Documentation
   Having a written declaration helps avoid misunderstandings or disputes by clearly defining the scope, duration, and limits of the authorised person's role. This documentation can be presented whenever needed for verification.

5. Regulatory and Banking Needs
   Many institutions, especially banks, require a signed declaration of authorised signatory before allowing someone to operate accounts or make formal submissions. Government portals such as GST, Income Tax, MCA, etc., also ask for this during registration and filing processes.

Typical Contents of an Authorised Signatory Declaration Format

A standard Authorised Signatory Declaration format generally includes:

• Name and address of the principal (individual or company)

• Name, address, and designation of the authorised signatory

• Details of the authority granted (nature of tasks, scope, financial limits)

• Duration of authorisation (temporary or permanent)

• Declaration clause affirming that all actions taken by the authorised signatory are binding

• Signature and seal of the principal

• Date and place of declaration

• Supporting documents (ID proof, Board Resolution, etc., if needed)