Partnership Authorization Letter

If you own a business, you may be interested in expanding it further by entering a partnership with another business or individual. The process of doing this is a professional one and should be done carefully. You need to follow all steps concerned so that everything works out. A partnership authorization letter is an important document here.

What is a partnership authorization letter?

A partnership authorization letter is a letter that gives official permission to begin the partnership. Discussions will have occurred before this, aiming towards the partnership. When terms and conditions of the partnership and other details have been agreed upon, the authorization letter can be written.

Importance of a partnership authorization letter:

Partnerships are formal and professional, as said above, and so need to be carried out in this way. The authorization letter is proof that both parties have authorized the partnership and have agreed to it. This letter can be kept for legal reasons if needed later.

Tips to create a partnership authorization letter:

When making the partnership authorization letter you need to show that it is serious and professional. The following points can be kept in mind:

Microsoft Word: You need to select the best application to type the letter in. An easy one to use is Microsoft Word. There are many fonts available here. Choose a professional one that is of a good size.

Follow a professional format: Since the letter is a formal one, it needs to follow a professional format. All parties must take it seriously.

Heading: The letter can have a heading. The heading lets the recipient know what the letter concerns. The heading can be something like “Partnership Authorization Letter.”

Your details: You can write the letter on your company’s letter-pad. Give your business details such as its address, phone number, email address. State the date that the letter has been written. The date is important so that it is known when the authorization letter got sent.

Recipient’s information: Clearly state who the letter is to. Include their name, business address, phone number, etc.

Subject: You can include the subject of the letter. This will be one line and state what the letter is about.

Paragraphs: If you want the letter to be easy to read, arrange it in paragraphs. Start by stating that your business has authorized the partnership with the recipient’s business. State that the letter is intended to be signed to authorize the partnership. You will then state the roles that the party will have after the partnership. Tell what duties they will carry out when the partnership occurs. The letter will convey what the partnership involves. Be clear and include all important details here.

Signatures: Include the names and signatures of all concerned people involved in the authorization process.

Ending: End the letter by giving your name, the name of your business, signature, title, etc.

Include important points only: The partnership authorization letter should be precise. Only add those points that are necessary. It should not be too long and complicated. No one would like to read a letter like this. State all facts clearly. Do not use tough words. Choose those that will be understandable for everyone concerned. Both parties should know what the partnership involves and what duties they need to carry out.

Proofread carefully: The letter is professional so they should be no errors. Proofread it carefully. Check if there are any grammatical errors present and fix these. You want to give a good impression of your business.

Final Words:

You probably know the importance and seriousness of any partnership. You must enter one after looking at the benefits that your business will get. When you have decided to go on this path, follow all the procedures in place so that the partnership can proceed without any hurdles. The partnership authorization letter is a letter that is important in a partnership. When creating it, do this carefully. Type it in Microsoft Word and make it simple to understand by whoever is concerned. Make it short and to the point so that it is read and considered.

Sample Letter

To Whom it may concern,

I, John Steven at ABC Limited, hereby declare XYZ Limited as an authorized party to sign any documents related to [X] project till the end of this project on 30th August 20XX.

It is authorized to order the supplies, allocate the funds, hire/fire any employee on the project, and manage the legal matters.

XYZ Limited is authorized to sign any papers, which otherwise may impact the smooth functioning of the [X] project. If there is any legal issue during and about the project, XYZ Limited can deal with it on behalf of ABC Limited.

All these authorities are only limited to [X] project, and this document is valid only till 30th August 20XX.


Sarah Steven,

ABC Limited.

File: Word (.docx) 2007+ and iPad
Size 28 Kb