Last updated on December 25th, 2024 at 03:57 pm
Current Account is specifically curated account for Business/Firm. If you does not have a current account yet and does not know what is current account, Read our article on Comparision of Savings and Current Account before this page for better understanding.
But as for this post let us see what are the documents required for opening a Current account for your firm or Business Entity.
Whether you are starting a new business and requires a bank account for doing your business transaction or already having a bank account for the business but want to open new account with the new bank, reading this post will help you in both the case by preventing time wasted on producing unnecessary documents.
Type of Business
The documents required for opening a bank account is based on the control structure of the entity. As it determines the nature of the fund and who is the controlling person and the management structure of the business.
In this article we will discuss on three types of business account and the documents required to open each type of account.
- Sole Proprietary firm
- Company
- Partnership Firm
Thus for each type of account opening you need to submit different documents. This will help the banks to identify and monitor the transaction and for any irregularities and for the regulatory purposes.
Lets see what are the documents required for opening account for each type of account.
Sole Proprietary Firm – Documents Required for Account Opening
If you are running a Sole Proprietary Firm/ Business you need to submit any two of the following documents in the name of Proprietary Firmto the bank while opening account.
- Registration certificate of the business( Udyam Registration Certificate (URC) issued by the Government).
- Certificate/licence issued by the municipal authorities under Shop and Establishment Act.
- Sales and income tax returns.
- CST/VAT/ GST certificate.
- Utility bills such as electricity, water, landline telephone bills, etc.
- Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities..
- IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT or Licence/certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute.
- Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/acknowledged by the Income Tax authorities.
Apart from providing these documents you need to submit KYC of the Proprietor who is operating the account.
Documents Required for Opening Company Account
For opening a Company Account you need to submit certified copy of following documents.
- Certificate of incorporation.
- Memorandum and Articles of Association.
- Permanent Account Number (PAN) of the company.
- A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf.
- The names of the relevant persons holding senior management position.
- address of the registered office and the principal place of its business.
Apart from these documents you need to submit KYC documents of the beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf.
Documents Required for Opening Partnership Firm
For opening a Partnership Firm you need to produce following documents in the name of Firm need to be presented to the bank.
- Registration certificate.
- Partnership deed.
- Permanent Account Number (PAN) of the partnership firm.
- KYC Documents relating to beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf.
- The names of all the partnersa
- Address of the registered office and the principal place of its business.
Conclusion
In this blog we have covered the documents required for opening a business account. Banks as per RBI instruction are identifying the account based on the management structure of the business.
The KYC documents required reflects the same here. Hope this article helped in resolving your queries. For any other information comment your questions and we will ready to help you.