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The procedure for Opening a current bank account for the Private limited company is very easy. Private limited companies prefer to open a current bank account rather than opening a saving bank account. As saving bank account has the limit on the maximum number of transactions that can be carried out. Current accounts, on the other hand, have no transaction limits. Thus, all entrepreneurs open current accounts as soon as they start their business. Strict KYC rules have been prescribed by Reserve Bank of India for opening a current bank account. For Private Limited Companies the Reserve Bank of India has prescribed certain documents to be submitted to the bank in order to open a current account with any bank.
Documents required by banks to open a current account in the name of company
As per the KYC norms, following documents are required to be submitted with bank by private limited company-
In order to open a current account, every private limited company must file the account opening form along with the documents mentioned above. Further, the company is required to submit the certified copy of the board resolution that will specifically indicate that the company desire to open a bank account. In addition to this, the resolution will specify the name of the directors who are authorized signatories both solely and jointly. Moreover, it will specify that the Know your customer(KYC) will be updated from time to time.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.