In India, there are two types of bank accounts – savings accounts and current accounts. While a savings account is meant to cater to personal use, a current account caters to businesses.
A current account is like a financial account that can be used by businesses, entrepreneurs, trusts, associations, and more. A current account offers tons of advantages to account holders like limitless withdrawals and deposits for free, more free cheques per month, easy transfers in various branches, and an overdraft facility. Features like these make current accounts a must-have for all professionals, entrepreneurs, and organisations.
Opening a current account these days is simple and easy. You can open an online current account or an offline current account by visiting your bank. You can do your research and find out the current account that fits your business needs and requirements and then go for it.
Once you have chosen your preferred bank, you can go ahead and set up your account. However, certain documents are required by the bank.
Take a look at the documents required for opening a Current Account:
- Identity proof, such as the PAN card of the proprietor, vendor, professional, organisation, company, etc.
- More documents for individuals contain voter ID, driving licence, and passport.
- Telephone and electric bills can be the address proof for individuals.
Proofs for the existence of your business.
- Either one of these below-listed documents shall be enough as proof of the existence of your business:
- An import-export licence from the Director General of Foreign Trade.
- Registration and licences that are given by the Municipal authorities. This is a mandatory document under the Bombay Shops and Establishments Act, 1948.
- A registration certificate that is given by Professional Tax authorities.
- GST registration certificate along with the correct number.
- A business registration certificate from your state government.
- Reserve Bank of India or SEBI registration certificate.
- FSSAI licences which is an acronym for Food Safety and Standards Authority of India.
Proof of address for business:
- Allotment letter by the Income Tax
- Bills of Property Tax/Water tax
- TAN (Tax Deduction and Collection Account)
- Documents of property registration
- Documents of title deeds to the property or rental registration
- Bank account statements
If you are an NRI, then the following documents are required in addition to the previously mentioned documents.
You need a customer declaration incorporating the following:
- The funds will come from a Non-Resident Ordinary or Non-Resident Rupee or Foreign Currency Non-Repatriable account
- The organisation is not into agricultural activities, print media, or real estate operations.
If you are opening a current account as a limited liability partnership, then you need these documents:
- Limited liability partnership certificate
- A limited liability partnership agreement
- KYC of partners
- List of partners and their partner ID, which is designated to them. This is given by the Ministry of Corporate affairs
- A resolution stating that the partner is authorised to be a signatory
If you are opening a current account for a company, then these documents are required.
- Memorandum of association
- Incorporation certificate
- Certificate of commencement of business for a public ltd. organisation
- Articles of association
- List of directors of an organisation
- Board resolution appointing signatories.