Company Authorization Letter (Template & Sample)

A Company Authorization Letter gives another person or Organization the hold and right to act on the company’s behalf for any specific matter or task. A company authorization letter can be used when a company needs to authorize someone to conduct financial transactions with a bank, negotiate a contract, or any number of other responsibilities, on behalf of the company.

Alternately, it might assign an organization the right to accomplish a task, such as organizing a local fundraising event, on behalf of the company.

A company authorization letter is written on company letterhead by a senior company employee, such as an owner, CEO, or general manager. This letter acts as a formal, legal contract between the company and the recipient, and should be written in professional language.

This letter may be sent with a signature form. The signature form allows the recipient to compare the representative’s signature when presented with an official document signed by the representative, such as a company check. This procedure provides a safeguard to both the authorizing company and the recipient.

What to Include in a Company Authorization Letter

This letter must include specific information about the legal authorization and responsibilities of the authorized person or organization. Be sure to include:

  • Name of authorized representative
  • Task(s) the representative is authorized to accomplish
  • Location in which the Representative is authorized, if needed
  • Limitations to authorization if any
  • Ending Date of authorization
  • Contact information for the sender
  • Signature form, if required

Important: Authorization must be immediately revoked in writing if the authorized representative is no longer suitable for any reason. If a company employee cannot deliver formal notification, send a courier.

Company Authorization Letter Format

Here is the basic format used for a company authorization letter. It can be adapted and used to fit any purpose required. Remember to use company letterhead for this letter.

{Recipient Name and title}

{Recipient Company Name}

{Recipient Address}

{Date}

Subject: Authorization to {tasks}

Dear {Recipient Name}:

This letter authorizes {person/organization} to act in all matters pertaining to {task(s)} on behalf of {company name} {in location} until {ending date}, or formally notified in writing.

This document of authorization {limits/does not limit} the power of {person/organization} to act on {company name}’s behalf in matters relating to {task}. {Limitations:}.

Therefore, by the existence of this instrument, we hereby authorize {person/organization} to act on our behalf in the above-stated manner {subject to above-stated limitations}.

Please contact {contact name} at {contact number or e-mail} if any questions arise.

Sincerely,

{Sender Signature}

{Sender name and title}

Sample Company Authorization Letter

Here is a sample of a Company Authorization Letter in which the company places no limitations on the powers accorded to the authorized representative. This sample specifies a single location in which the representative is authorized.

Mr. Bill Howser

Allied Electronics

8372 West Pennington Drive

Samson, KS 89276

January 18, 2022

Subject: Authorization to Negotiate Contracts

Dear Mr. Howser:

This letter authorizes Mr. James Hathoway to act in all matters pertaining to contract negotiation on behalf of Ajax Manufacturing at our new location in Samson, KS, until December 31, 2022, or formally notified in writing.

This document of authorization does not limit the power of Mr. Hathoway to act on Ajax Manufacturing’s behalf in matters relating to contract negotiation.

Therefore, by the existence of this instrument, we hereby authorize Mr. James Hathoway to act on our behalf in the above-stated manner.

Please contact Eli Fortram at fortrameli @ ajaxmfg . com if any questions arise.

Sincerely,

Johnathon Sanderson

Johnathon Sanderson, CEO

Sample Business Authorization Letter

Here is a sample of a Company Authorization Letter in which the company places a limitation on the powers accorded to the authorized representative.

Eleanor Johnson

Bank of United States

1234 South Marilyn Street

Naverre, OH 89894

June 22, 2028

Subject: Authorization for banking privileges

Dear Jennifer Biaz:

This letter authorizes Mrs. Diana Wright to act in all matters pertaining to banking on behalf of Independent Marketers until December 31, 2028, or formally notified in writing.

This document of authorization limits the power of Diana Wright to act on Independent Marketers’ behalf in matters relating to banking. Mrs. Diana Wright may not make cash withdrawals on Independent Marketers’ behalf of amounts in excess of US $250.00 each month, including June and December 2028.

Therefore, by the existence of this instrument, we hereby authorize Mrs. Diana Wright to act on our behalf in the above-stated manner, subject to the above-stated limitation.

Please contact Eleanor Johnson at 972-343-4782 if any questions arise.

Sincerely,

Eleanor Johnson

Eleanor Johnson, CFO

Attached: Signature Form

Key Points

A company letter of authorization is a formal, binding contract.

  • Use company letterhead
  • Keep the tone formal, clear, and concise
  • Revoke the authorization immediately in writing if necessary