Document Checklist for Current Account Opening in India

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Document Checklist for Current Account Opening in India

A current account is a bank account owned and operated by business owners who make frequent transactions to meet their business banking requirements. For high volume, day-to-day business transactions, this bank account is ideal. If you’re planning to open a current account for your business, this blog post will help you learn about all the required documents. 

Features of Current Account

Below, we have mentioned some of the key features of a current bank account.:-

• It enables frequent high-volume business transactions, making it ideal for companies.

• It provides easy access to funds.

• A current bank account allows its operators to make and receive payments in a smooth manner through cheques, online payment facility, etc.

• It typically charges penalties in case the minimum account balance requirement is not met within the prescribed due date as per the bank’s terms and conditions.

• The companies can obtain an overdraft facility on their current accounts based on factors like transaction history, book of accounts and average balance.

• Companies with current accounts can obtain short-term loans for immediate business needs. (Please note that these loans come with interest rates).

Popular Banks that Offer Current Bank Account Opening Services

Below, we have mentioned some of the most popular banks that offer current bank account opening services.:-

• HDFC Bank

• ICICI Bank

• Axis Bank

• Kotak Mahindra Bank

• Bank of Baroda

• IndusInd Bank

• State Bank of India

• RBL Bank

• Yes Bank

• IDFC First Bank

Current Account Opening Documents Required

According to the official website of HDFC Bank, the documents required to open a current account in bank include the following.:-

• Duly Filled Account Opening Form.

• Beneficial Owner Declaration.

• Initial Funding Cheque.

• PAN Card of Business.

• Photo Identity & Address of Authorized signatory/Beneficial Owner (PAN Mandatory, Aadhar along with voluntary consent in Bank format, Passport, Voter ID, Driving License, Job Card issued by NREGA).

• Form 20 A with ROC Receipt (for Pvt Ltd/Pub Ltd/OPC incorporated under the Companies Act, 2013, on or after 2nd Nov 2018).

• For Address Proof of the entity, the following documents can be submitted:-

• GST Registration.

• Shop & Establishment Certificate.

• Labour License. 

• Certificate issued by ICAI/ICSI, IEC Certificate, 

• Weight & Measurement Certificate. 

• Municipal License, Trade License,Registration Certificate with PF commissioner. 

• ITR along with an acknowledgement of ITR and IP cheque from the Firms A/c. 

• Profession Tax Certificate, Letter/ Certificate/ NOC / permission issued by village Administrative Officer / Talati / Panchayat Head / Mukhiya / Village Developmental Officer. 

• Registration Certificate issued by Registrar of Partnership Firm. 

• TAN allotment letter. 

• FSSAI License. 

• Latest property tax receipt in the name of the firm. 

• Landline telephone bill / internet or leaseline bill (issued by licensed Telecos such as Airtel, Vodafone, MTNL, BSNL) / Electricity bill of public & approved private operators in the state. (Bills not to be older than 3 months from the date of account opening). 

• Property ownership deed duly stamped and registered,Latest water tax paid receipt / bill.

• Existing bank account statement or passbook of a PSU / Private Sector /Foreign bank, not older than 4 months from the date of account opening, 

• Lease / leave & license agreement / rent agreement, duly stamped and accompanied by utility bill in the name of landlord.

• PAN intimation letter issued by IT authority/EPAN along with (a) print out from website confirming PAN or (b) copy of PAN card. 

• Certificate of incorporation if it contains address, Form 18 / Form INC 22 along with ROC receipt confirming the address.

• ROC website printout confirming registered address of the firm provided. This printout must be signed & authenticated by the Director or Company Secretary. Note that the communication address must be the same as the registered office.

• Some Additional Documents required are:-

• MOA/ e MOA.

• AOA/ e AOA.

• Certificate of Incorporation.

• Certificate of Commencement of Business.

• List of Directors along with MCA site printout.

• MCA site Company Master printout (Status of the company must be “active”).

How to Choose the Right Current Account?

Here are a few things to take into consideration to help you select the right current account:-

• Look for a bank that requires a low monthly balance for current accounts. This way, you will be able to avoid unnecessary charges/penalties.

• Also, check the maximum overdraft limit offered by the bank to manage short-term cash shortages.

• Choose a bank that provides smooth digital banking facilities such as net banking, a user-friendly mobile app and UPI and NEFT/RTGS support.

• Compare fees for issuing demand drafts, maintaining a minimum balance, SMS alerts, etc., among major banks shortlisted by you and see which one is best.

Conclusion

After ensuring you have all the necessary documents in place, you can visit the branch of the bank of your choice and open a current bank account for your company there. It is important to note that depending on the bank you choose for current bank account opening, some additional documents might be required. Therefore, we suggest you connect with the bank on call or mail prior to visiting their branch to learn more about the documentation. This way, you will be able to save up your precious time and energy. 

Frequently Asked Questions (FAQs)

Q1. Can I open a current account without PAN card?

A. No, without a company PAN card, you cannot open a current bank account for your company.

Q2. What happens if I fail to maintain the minimum account balance in my current account?

A. If you fail to maintain the minimum balance in your current bank account, the bank will impose a penalty on your account, in most cases.

Q3. Can I open a current bank account if my business is unregistered?

A. Yes, if your business is unregistered, you can open a current account in your personal name as a sole proprietor.

Q4. What are the documents required for current bank account opening? 

A. To open a current account at a bank, you need several documents such as account opening form, PAN card of business, GST registration certificate, professional tax certificate, Memorandum of Association, Articles of Association, Certificate of Business Commencement and Certificate of Incorporation among others.

Q5. What are the types of businesses that require current accounts?

A. The types of businesses that require current accounts include sole proprietorships, limited liability partnerships, one person companies, public limited companies, private limited companies and partnership firms.

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