How to open a current account for your business

Guidelines to open a current account for business

by Swati Bucha on 16/03/2017
In one of our previous blogs, we had discussed how to open a bank account. In this article, we’ll help you with the checklist that is required to open a current account for your business.

Usually, a current account is used for the purpose of convenience of the business as these accounts can deal with a large number of transactions on a daily basis. A current account helps you plan your finances better and probably makes getting credit easier. No interest is paid on the amount lying in these accounts and in some cases, banks do charge a small fee.

Indicative list of documents that you’ll be required to submit
Here’s an indicative list of the mandatory documents that you’ll probably need to open a current account.
Please note that the below list is provided to you for information purposes only and may vary depending upon the requirements of the financial institution to which you apply for opening a current account.

Individuals (business purpose)
Photo identity proof – Permanent Account Number (PAN Card), Valid Indian Passport, Voter Identity Card, Aadhaar card
Address proof – Electricity bill, Bank statement, Aadhaar card, Valid Indian Passport, Voter Identity Card, or a rent agreement in your name.
Recent coloured photograph
PAN/Form 49 A along with Form 60 if applied for PAN
Account opening Cheque from existing Savings/Individual Current Account
Sole proprietorship firm & Hindu Undivided Family (HUF)

Details to be submitted for HUF Accounts:
Recent coloured photograph of the karta/existing authorized signatories to the account
Identity and address proof of the karta/existing authorized signatories to the account
Communication address proof of the karta/existing authorized signatories to the account
Present phone/mobile number and e-mail ID
Permanent Account Number (should be in name of HUF)

Details to be submitted for Proprietorship Account & entity owned by HUF:
Two documents in the name of the entity confirming the name and address issued by Government authority
Recent coloured photograph of the proprietor
Permanent Account Number (PAN) card
Address proof of the proprietor
In case, Power of Attorney (POA) has been granted for Account operations, photograph and identity and address proof of the POA holder should also be submitted
Partnership Firm
Recent coloured photograph of existing authorized signatories to the account
Identity & Address proofs of existing authorized signatories to the account

List of beneficial owners holding more than 15%in the firm (on letterhead)
Communication address proof of the entity
Present phone/mobile number and e-mail ID
Permanent Account Number (PAN)
Private/Public Limited Company
Certificate of Incorporation
Communication address proof of the entity
Present phone/mobile number and e-mail ID
Permanent Account Number (PAN)
Recent coloured photograph of each of the existing authorised signatories
A copy of one valid photo identification and address proof document of each of the existing authorized signatories

List of beneficial owners holding pattern more than 25% in the company
Permanent Account Number (PAN)/Identity proof of such beneficial owners as identified above
Address proof of such beneficial owners as identified above
Limited Liability Partnership
Certificate of Registration issued by Registrar of LLP
Communication address proof of the entity
Present phone/mobile number and e-mail ID
Permanent Account Number (PAN) if not provided earlier
Recent coloured photograph of each of the existing authorised signatories
A copy of one valid photo identification and address proof document of each of the existing authorized signatories
In case, Power of Attorney (POA) has been granted for Account operations, photograph and identity and address proof of the POA holder should also be submitted

List of beneficial owners holding more than 25% in the company
Permanent Account Number (PAN)/Identity proof of such beneficial owners as identified above
Address proof of beneficial owners as identified above
Officer will verify your Bank Account Opening Form
The bank officer will then verify the account opening form along with all the necessary documents. The form should be complete in all respects and you should have all the documents in both original and copy. Once the documents are fine, your form will probably be cleared.

Deposit initial amount in newly opened Bank Account
As soon as your form is cleared, you will be required to deposit the necessary amount in the bank (the amount may vary from bank to bank). Current Account users are probably required to maintain a minimum balance in their accounts (the amount may vary from bank to bank). Usually, banks have a minimum quarterly average balance of ₹5,000/ ₹10,000, after the initial money is deposited.

Almost all banks provide the facility of Debit Card, Mobile banking, Internet banking for current account users. However, they may charge a small fee for these services.

Once your bank account is opened, you can also operate the account online through internet banking or by mobile banking or by drawing cheques and filling slips books. If you run an online business through Amazon, you will get regular and timely payments to your bank account seamlessly. A huge advantage here is while Amazon offers Pay on Delivery (commonly called Cash on Delivery) to your customers, you get the funds directly transferred to your account. So, get an account opened today and to set up your business on Amazon.in, register here.

The details provided herein are solely for informational purposes. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from your use or reliance upon these details.
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