A business letter is a formal means of written communication used by an organisation to exchange information with customers, suppliers, employees, government departments, financial institutions and other business associates. Since a business letter represents the organisation, its arrangement should be systematic, clear, concise and professional. A well-arranged letter enables the reader to understand the purpose and message quickly and also creates a favourable impression of the sender. The arrangement of a business letter refers to the proper placement and sequence of its different components. Although the exact format may vary according to the organisation and purpose, a standard business letter generally contains the following parts. The letterhead is normally placed at the top of the letter. It contains the name of the organisation, its address, telephone number, email address, website and other relevant contact details. In some organisations, the logo and registration details may also appear on the letterhead. A good letterhead gives the letter an official identity and helps the recipient know immediately who has sent the communication. The date is placed below the letterhead, generally on the right-hand side or left-hand side according to the style being followed. The date indicates when the letter was written or issued. It is important in business communication because it provides a record for future reference and may also be relevant for deadlines, contracts, orders and payments. The date should be written clearly, such as “13 August 2026,” to avoid confusion. The reference number may be included below or near the date. It helps the organisation identify and retrieve a particular letter or communication. For example, a company may use a reference such as “Ref: HR/2026/45.” When replying to a previous letter, the reference number enables both parties to connect the correspondence with the earlier communication. The inside address contains the name and address of the person or organisation to whom the letter is being sent. It usually includes the recipient’s name, designation, organisation and complete postal address. For example, the address may begin with the name of the manager followed by the name of the company and its location. Correct placement and accuracy of the inside address are essential because they ensure that the letter reaches the appropriate person. The subject line briefly states the main purpose of the letter. It is usually placed below the inside address and before the salutation. The subject should be short, specific and informative. For example, “Subject: Request for Replacement of Damaged Goods.” A clear subject helps the reader understand the purpose of the communication without having to read the entire letter. The salutation is the formal greeting used to address the recipient. Common expressions include “Dear Sir/Madam,” “Dear Sir,” “Dear Madam,” or “Dear Mr Sharma.” The choice of salutation depends upon the relationship between the sender and receiver and the information available about the recipient. In formal business correspondence, the salutation should be polite and appropriate. The body of the letter is the most important part because