How to Open a Bank Account for Partnership Firm?

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How to Open a Bank Account for Partnership Firm?

Now, it is time that we intimate you with the knowledge to open a bank account in the name of such a firm. The reason for opening a bank account for the firm is to give the firm its own legal identity.

Why to open an account for a partnership firm?

While you must already be aware of the reason as to why a bank account is opened for a partnership firm, it is time that we shed a light upon its benefits:

1. Adequate handling of large payments:  With a proper bank account for a partnership firm, it is now easy to handle large volumes of receipts and payments. The process of payment processing is made much swifter.
2. Limitless withdrawal:  With a partnership firm bank account, limitless withdrawal is now a possibility.
3. No restrictions to the deposits: No restrictions to the deposits made to the branch. Furthermore, the account holders can deposit the payments in other branches as well with only a nominal fee.
4. Direct payment to the creditors: Cheques, DDs and pay orders can be issued using the current account and creditors can be paid directly.
5. Receipts on behalf of customers: Banks can collect receipt on the customer’s behalf and the same money can be credited to the customer’s account later.
6. Short term borrowing facilities:  The account holder can enjoy overdraft facilities.
7. Easy business transactions:  Business transactions are made easy due to the presence of facilities such as internet banking and mobile banking.

Documents required to open a current account

In order to open the current account for a partnership firm, the following are the documents that are required to be submitted along with application for opening the account:

1. A certified copy of the partnership deed
2. The PAN card that is in the name of the partnership firm
3. AADHar card of all the partners of the firm
4. Address proof of the place of business
5. ID proof of the partners of the firm
6. If there partnership is registered, then you are going to need a partnership registration certificate
7. A certified copy of any license that the partnership firm possesses. They can be:
   • Mandi License
   • Labour license
   • Trademark registration certificate
   • Liquor License
   • Registration certificate by customs department
   • Weights and measures registration certificate
8. An NOC from the police department
9. GST registration certificate
10. SSI Registration or MSME registration certificate(if any)
11. Startup Recognition Certificate (if any)
12. EPF details of the partners of the firm
13. SEBI registration certificate
14. Income tax returns that were filed by the partners
15. Copy of electricity and the phone bill.

When you submit these documents along with the application for account creation, you are going to get the account, almost instantly.

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