What Documents Are Required to Open a Bank Account for a Pvt Ltd Company

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What Documents Are Required to Open a Bank Account for a Pvt Ltd Company

Preface: This post was originally published in 2017 and has been updated on June 23, 2025, to provide you with the most current and accurate information.

Across the world, a Private Limited Company is a widely preferred business structure. In India, such a company is registered under the Companies Act 2013. It provides limited liability protection and easier access to funding. Once this type of company is incorporated, it becomes extremely important to open a bank account for the purpose of handling various financial activities like depositing the subscription amount, managing business funds and meeting statutory obligations.

If you have recently established a Private Limited Company and received a PAN in the company’s name, you can move ahead and open an account at the bank under the company’s name. In this blog post, we shall provide the list of documents required to open a bank account for a Private Limited Company in India.

Benefits of Business Bank Account for Pvt Ltd Company

The key benefits of opening a business bank account for a private company are as follows:

• For a Private Limited Company, maintaining a separate business bank account is a necessity since it helps ensure compliance with financial regulations.

• Having a business account at a bank allows shareholders to separate their personal finances from business finances. This helps to maintain clear financial records and also simplifies processes related to accounting and auditing.

• A business bank account is essential for ITR filing since it allows for accurate reporting of business income as well as expenses.

• It allows banks to track the financial transactions of the pvt ltd company and makes it easier to figure out its creditworthiness to check its ability to repay loan. This makes it easier for the company to secure business loans.

• It also provides a layer of liability protection by keeping the personal assets of shareholders separate from their business’s financial obligations.

• A dedicated account at the bank might also be necessary to access government schemes and benefits aimed at startups registered as pvt ltd companies.

Document Required to Open Bank Account for Pvt Ltd Company

To open an account at the bank for a private company, you will need to submit the following documents to the bank where you want to open your account:

• Certificate of Incorporation issued by Registrar of Companies (ROC).

• Memorandum of Association (MOA).

• Articles of Association (AOA).

• Copy of PAN Card Allotment Letter.

• Copy of the latest utility bills, such as Electricity and Telephone Bills.

• Shop License Registration.

• Resolution of the Board of Directors to open a current account and identify those who are authorized to operate such an account.

• Power of Attorney granted to the managers, officers or employees to transact business on its behalf, if applicable.

• Directors Identification Number (DIN) of the company’s directors.

• Latest list of the directors according to the format prescribed by the bank.

• Identity proof of all directors/authorized signatories, such as Aadhaar Card, Driving License and Passport.

• Shareholding Pattern.

• Beneficial owner information, if applicable.

The documents listed above are required to open a bank account for a Private Limited Company. If you’re operating a Partnership Firm, the requirements may differ. Check the list of required documents to open a account for a Partnership Firm here.

Once all your documents are ready, you can visit the branch of the bank where you wish to open your account. You'll need to submit an account opening application along with the required documents. Some banks may ask you for additional paperwork depending on their policies.

Conclusion

Opening a business bank account is one of the most important things you need to do once you finally incorporate a private company. Doing so allows you to separate your personal and business finances. Additionally, having an account at the bank allows the bank to assess your company’s creditworthiness and makes it easier to secure business loans.

Need assistance in setting up a Private Limited Company in India? Connect with Registrationwala’s professional consultants for support in documentation and application filing process!

Frequently Asked Questions (FAQs)

Q1. Is a current account mandatory for business?

A. No, it's not mandatory for a business to have a current account, but having one makes handling business finances much easier and certainly more professional.

Q2. Can I use a normal account as a business account?

A. Yes, you can use a normal account as a business especially when you run a very small or sole proprietorship setup. However, it’s better to keep things separate with a proper business account for clarity as well as compliance.

Q3. How many current accounts can I have in India?

A. There's no fixed limit on the number of current accounts you can have, but having too many accounts can make things messy, especially during ITR filing. Ideally, you should stick to one account unless there's a genuine need for multiple accounts.

Q4. Can a company have more than one current account?

A. Yes, a company can open multiple current accounts. There’s no upper limit.

Q5. Is current account mandatory for GST?

A. No, a current account is not mandatory for GST registration. For registration under the GST regime, you just require valid bank details. For some businesses like proprietorships, even details of a savings account can work.

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