Please refer to Prudential Regulations M-1 which requires
minimum set of documents to be obtained by banks/ DFIs
for opening bank account of various categories of customers.
The requirement of documents for opening of a bank account
for Joint Stock Companies, interalia, includes Resolution
of Board of Directors authorizing a specific person(s)
to operate the company’s account and Certificate
of Commencement of Business.
2. It has been noted that in few countries, (i) passing
of a Board Resolution for the purpose of opening bank
account is not in vogue and (ii) Certificate of Commencement
of Business is also not issued by any institutions/ body.
As a result, banks have been approaching SBP quite often
for relaxation of said conditions under Prudential Regulation-
M1, while opening accounts of such entities. The matter
has been considered / reviewed and it has been decided
to relax the condition of obtaining Board Resolution and
Certificate of Commencement of Business for opening bank
account of only such foreign companies / entities belonging
to countries where said requirements are not enforced
under their laws / regulations. However, such foreign
companies will have to furnish the following documents
in lieu of resolution passed by BOD for opening of account
and Certificate of Commencement of Business to the satisfaction
of their banks.
3.
All other instructions on the subject shall, however,
remain unchanged.
4.
Please acknowledge receipt.
