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Business Authorization Letter for Germany

Business Authorization Letter Template for Germany

A Business Authorization Letter under German law (Vollmachtsurkunde) is a formal document that grants specific powers and authority to an individual or entity to act on behalf of a company. Governed by the German Civil Code (BGB) and Commercial Code (HGB), this document explicitly outlines the scope of authority, duration, and limitations of the powers granted. It serves as legal evidence of the authorized person's ability to conduct specified business activities, make decisions, or enter into agreements on behalf of the authorizing company within German jurisdiction.

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What is a Business Authorization Letter?

The Business Authorization Letter is a crucial document in German business operations, used when a company needs to delegate specific powers to individuals or entities to act on its behalf. It is particularly important in situations where representatives need to conduct business transactions, sign documents, or make decisions in the absence of company directors or primary stakeholders. The document must comply with German Civil Code (BGB) and Commercial Code (HGB) requirements, potentially requiring notarization for certain types of authority. It typically includes detailed information about the grantor and grantee, specific powers being delegated, duration of authority, and any limitations or restrictions. This authorization letter is essential for maintaining clear chains of authority and ensuring legal compliance in business operations within German jurisdiction.

What sections should be included in a Business Authorization Letter?

1. Letter Header: Complete business details of the authorizing company including registered address and registration numbers

2. Date and Place: Current date and place of issuance of the authorization letter

3. Authorized Party Details: Full name, position, and identification details of the person being authorized

4. Authorization Statement: Clear statement of the grant of authority and its general purpose

5. Scope of Authority: Detailed description of what actions the authorized person can take on behalf of the company

6. Duration: Time period for which the authorization is valid

7. Limitations: Any specific restrictions or limitations on the authorized powers

8. Signature Block: Space for authorized signatories of the company, including their names and positions

What sections are optional to include in a Business Authorization Letter?

1. Substitute Authorization: Section granting power to delegate authority to others, used when delegation rights are needed

2. Revocation Terms: Specific conditions under which the authorization can be revoked, included when special revocation terms are required

3. Reporting Requirements: Requirements for the authorized person to report on actions taken, used in cases of significant authority

4. Compliance Statement: Statement regarding compliance with specific regulations, included when authorization involves regulated activities

5. Witness Section: Space for witness signatures, used when additional verification is required

What schedules should be included in a Business Authorization Letter?

1. List of Authorized Activities: Detailed enumeration of specific activities and transactions the authorized person can perform

2. Specimen Signature: Sample signature of the authorized person for verification purposes

3. Required Documentation: List of documents that the authorized person must present when acting under this authority

4. Territory Schedule: If applicable, list of geographical locations where the authorization is valid

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses


















Relevant Industries

Banking and Financial Services

Manufacturing

Retail

Import/Export

Professional Services

Healthcare

Technology

Construction

Logistics

Real Estate

Energy

Telecommunications

Hospitality

Education

Consulting

Relevant Teams

Legal

Compliance

Executive Leadership

Administrative

Operations

Human Resources

Finance

Procurement

Sales

Business Development

Corporate Governance

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Legal Counsel

Compliance Officer

Department Head

Regional Manager

Sales Director

Procurement Manager

Human Resources Director

Operations Manager

Business Development Manager

Project Manager

Company Secretary

Branch Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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