What is Authorised Signatory?

A legal entity (such as a Dutch BV or foundation) cannot sign for itself. It acts through natural persons who are authorised to represent it. That authority has three possible sources: statute (the law generally grants the board of directors authority to bind a BV), the articles of association (which may restrict authority, for example by requiring the joint signatures of two directors or setting a financial limit), or a power of attorney (a written document granting a specific individual authority to act on the entity's behalf).

The KvK Trade Register is the public register of who is authorised to represent a business. A Trade Register extract shows the registered directors and holders of procuration (statutory proxy), together with any restrictions on their authority. Third parties dealing in good faith with a registered representative may rely on the register; an organisation cannot later claim that the register entry was incorrect to avoid a contract it no longer wants.

When in doubt about signing authority, follow three steps: check the KvK extract, request the articles of association if authority may be limited therein, and request a power of attorney if the signatory is not themselves a director.

A common scenario: a sales director or operations manager signs a large contract, but their internal authority is limited or they lack a formal power of attorney. The counterparty assumes they are authorised; if a dispute arises later, the company may challenge whether it is bound. This risk is eliminated by verifying signing authority before countersigning.

A contract signed by someone without authority is legally vulnerable. In the worst case, the legal entity can argue it is not bound, leaving you without enforceable rights. This risk is particularly serious for high-value or long-duration agreements.

Verify the signing authority of the counterparty's representative for every new contract. A KvK extract costs nothing to check online and takes five minutes, and can prevent years of legal dispute.