The documentation and legal work are an integral part of our day to day life. From taking admission in a school to getting a job or a driving license or a bank account statement, you need to visit the concerned office often to sign a number of papers and get your work done on time.
If you are a businessman, then life becomes far more troublesome as you have to deal with all such activities every day.
You have to sign paychecks, tax documents, company documents, as it is the part of our system to go through this paperwork for security and credibility.
If you are a small entrepreneur, then you can solemnly perform all these responsibilities, but what will you do if you have many businesses in different cities or different countries of the world?
Well, instead of traveling day and night, you can authorize a trustworthy person to make decisions on your behalf.
So let’s try to understand
What is an Authorization Letter?
An authorization letter is written by the owner or the signing authority to authorize someone else to make decisions or collect documents.
One can use this letter as proof to show authority in different scenarios. The authorization letter can be of great use when you are sick or out of town, and unable to visit personally.
When you want someone else to collect any certificate or important document on your behalf like- passport, PAN card, driving license, bank statement, or any other such document, then you have to issue an authorization letter.
Now let’s talk about the format of the authorization letter
Usually, an authorization letter is written in a similar way we write any other formal letter.
It should include the name of the person to whom it is written, current date, and complete details of the person who has been authorized by you (you may attach an identity proof of the authorized person to prove the Identity).
Along with that, it is advisable to mention the reason for your unavailability and the tentative duration of the authorization.
Suppose you want to authorize your friend or a family member for a week or two as you are ill, you can mention the duration of authorization as well.
In some cases, authorization can be for 10 years, 20 years, or for a lifetime.
For more convenience of the readers, I am sharing samples of authorization letters
- For GST, where the authorized person can pay the tax amount on behalf of the company.
- For Loan Closure, where the authorized person can close or settle any ongoing loan.
You can directly use these templates to fulfill your purpose.
1. Declaration for Authorized Signatory for GST
I (Your name), Director of Ziva Biotech Pvt. Ltd. R/o, 2335, Andheri West, Mumbai (Maha) PAN No- XXXXXXX hereby solemnly declares my brother (His name) to act as an authorized signatory for the business of Ziva Biotech Pvt. Ltd.; to pay the GST and monitor other activities of the Goods and Service Tax Act on behalf of Ziva Biotech Pvt. Ltd.
From now onwards, I would be responsible for all his actions concerning this business.
Signatures of the Director (es)
Acceptance as an Authorized Signatory
I, (His name), do hereby solemnly accord my acceptance to act as authorized signatory for the GST related responsibility of Ziva Biotech Pvt. Ltd.
(Signature of authorized person)
2. Authorization Letter for Loan Closure
The Branch Manager
(Name of the Bank)
Subject: Authorization letter for loan closure
With due respect, I (Your Name) want to inform you that I had taken a home loan from your bank in 2017. Because of lockdown and ongoing economic turmoil, I lost my job, and due to this reason, I am not in a situation to pay the remaining EMI’s of the loan in the upcoming months.
Currently, I am in California (USA) taking treatment for Breast Cancer, so I cannot visit the branch personally to surrender my loan. Hence I want to authorize my brother (his name) to surrender home loan on my behalf (The complete details of the loan are enclosed with the letter).
From now onwards, my brother (His name), PAN NO- XXXXXX, Addhar No- XXXXXX (the attested copies of both are enclosed) will perform all the responsibilities of loan closure on my behalf.
It’s a humble request to accept my application as I am going through a severe economic crisis. You can contact me any time on my registered mobile number or email id in case of any clarification.
I hope you find these letters helpful. If you want me to share samples of any specific purpose letter, drop a message in the comments section.