What Is an Incumbency Certificate? | Your Free Guide

In this article, we’re answering β€œWhat is an incumbency certificate?”

In short, an incumbency certificate confirms the officers, directors, and authorized signatories in a company. But, there are nuances you need to consider before requesting this Certificate.

We will discuss all of the relevant nuances and answer common questions we receive about this topic below.

This article is part of our free series on corporate banking solutions and features, which you can access by clicking here.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. What Is an Incumbency Certificate?
  2. Why Do You Need a Certificate of Incumbency?
  3. Frequently Asked Questions
  4. Do You Want Help Opening Bank Accounts?

What Is an Incumbency Certificate?

An Incumbency Certificate is a form of company documentation that confirms individuals with corporate authority, who are authorized signatories, and hold key positions within a company.Β 

Not surprisingly, an Incumbency Certificate may be requested to meet legal requirements, complete business transactions, open business accounts, meet compliance requirements, or to confirm corporate governance for another related purpose.

In short, the importance of this Certificate lies in its confirmation of company records and verification of authorized signatories prior to completing a particular action.

Why Do You Need a Certificate of Incumbency?

You need to provide a Certificate of Incumbency to identify the officers, directors, and signatories in a company. This information is especially important when opening financial accounts, entering contracts, and engaging with government agencies.

Is a Certificate of Incumbency Needed to Open a Business Account?

Yes, a Certificate of Incumbency is needed to open a business bank account at most banks. This is because banks need to confirm who is authorized to open bank accounts for a business.

Likewise, banks need to know who is authorized to execute transactions on behalf of the business after accounts are active. A Certificate of Incumbency provides banks with this information, and is therefore a common requirement during the account opening process.

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Frequently Asked Questions

Below are a few of the most common questions we receive from people looking into this topic. If you have further questions you would like to ask our team, don’t hesitate to get in touch.

Who Signs an Incumbency Certificate?

The party who signs an Incumbency Certificate may vary by company and jurisdiction. However, in most cases, the corporate secretary or a senior executive in a company with the authority to do so will sign the Certificate.

Where Can You Get an Incumbency Certificate?

You can get an Incumbency Certificate for a company from the Corporate Secretary. The Corporate Secretary is an officer in a company who is responsible for maintaining corporate records, among other responsibilities.

What Is a Form of Incumbency?

A Form of Incumbency is similar to a Certificate of Incumbency. The main difference between a Form of Incumbency and a Certificate of Incumbency is that it is usually a standardized document that is not issued directly by the company secretary. In other words, it outlines the necessary information about the officers, directors, and signatories but is for informational purposes rather than official documentation.

What Is an Example of an Incumbency Certificate?

An example of an Incumbency Certificate is a document that a bank may request to confirm an individual’s authority to open accounts and execute transactions on behalf of a company. Alternatively, another company in a potential business transaction may request this document to confirm that an individual has authority to enter into a legally binding contract on behalf of the company.

What Is Another Name for the Certificate of Incumbency?

Another name for the Certificate of Incumbency is the Certificate of Officers. Both of these terms refer to the same thing, which is an official certificate confirming the officers, directors, and signatories for a company. In short, regardless of the name, this document confirms the key individuals within a company and their authority.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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