How to Opening a Current Account For a Private Limited Company?

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How to Opening a Current Account For a Private Limited Company?

A current account is a bank account that is designed for frequent transactions. Many private limited companies in India open current accounts to conduct high-volume deposits and withdrawals. In this blog post, we shall explain to our readers how to open a current account for a private limited company.

Current Account Meaning in Bank

Current account definition can be explained as “a bank account used by businesses and professionals to handle frequent high value transactions like withdrawals, deposits and payments.” Current accounts are the opposite of savings accounts. 

Unlike savings accounts that are mainly meant for saving and earning interest, the current accounts are designed for substantial transactions for businesses and professionals and give priority to convenience rather than interest earnings. 

Current bank accounts come with features like unlimited transactions and overdraft facility for immediate business needs.

Documents Required to Open a Current Bank Account by a Pvt Ltd 

To open a current account in the name of a private limited company, the following documents are required:- 

• Certificate of Incorporation issued by the Registrar of Companies for the Private Limited Company.

• Memorandum of Association and Articles of Association.

• Board Resolution for opening a current account and appointing an authorised person to open and operate it.

• Power of attorney granted to the company officers, employees and managers conduct the business transactions using the account on the company’s behalf.

• DIN (Directors Identification Number) of all the Directors.

• PAN card of the company.

• List of Directors in the format prescribed by the bank.

• Registered Address Proof of Pvt Ltd such as latest utility bills, copy of company’s registration with EPFO or ESIC or any govt registration/license containing the address of the company such as GST registration and FSSAI license.

• Identity proofs of all the directors as well as authorized signatories like PAN card, voter ID card, aadhaar card, passport and driving license.

• Proof of current directors’ appointment in case of change in directors.

• In case of changes in the Board, the proof of resignation of directors must be provided.

• Information of the beneficial owner, if applicable.

• Any other documents required by the bank.

Process to Open a Current Account for a Private Limited Company

To open a current a/c for a PLC, the process generally takes place in the following manner. :-

Step 1 :- First, you need to choose the bank where you want to open the bank a/c. Then, you must visit the bank’s branch or the official website. Many banks allow businesses to open a current account online.

Step 2 :- On the bank’s website, select the ‘business current account’ option. After that, you must select the type of current account bank you want to open after understanding all the features and click on the “apply now” button and begin filling out the application form. Alternatively, you can also obtain the physical application form offline by visiting the bank’s branch and fill it with a pen. 

Step 3 :- Once you fill the form online, you can submit it by clicking on the submit button. In case of physical form, you must submit it offline at the branch. 

Step 4 :- Once the application form has been submitted with the bank via online/offline mode, a bank executive will contact the company to complete further formalities related to current bank a/c opening.

Step 5 :- All the necessary documents required for opening the bank a/c must be submitted with the bank.

Step 6 :- After KYC verification has been completed, the bank will open the current bank account in the name of the private limited company.

By following the simple above-mentioned steps, a current account will be opened in the name of the pvt ltd co successfully. If you face any issues during the process, including while filling out the necessary information in the application form, you can seek the assistance of the bank.

Conclusion

A current bank account is ideal for private limited companies because it's designed for a high volume of frequent transactions, unlike a savings account. Most banks in India offer current accounts for companies, including the private limited companies. The process for opening a current bank a/c is pretty simple, with many major banks in India allowing businesses to submit an application for current bank account opening online. 

Need assistance in opening a private limited company? Connect with our company registration consultants at Registrationwala!

Frequently Asked Questions (FAQs)

Q1. Is a business PAN card mandatory to open a current a/c for a pvt limited company?

A. Yes, a business PAN card is mandatory to open a current a/c in the name of a pvt limited company.

Q2. How is a current bank a/c different from a savings bank a/c?

A. The main difference between them is that a current bank a/c is meant for frequent transactions like those conducted by a business and a savings bank a/c is meant for individuals who want to save money and earn interest.

Q3. Is KYC verification required for opening a current a/c at a bank?

A. Yes, KYC is a mandatory requirement for opening a current a/c at a bank.

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