What is a current account?
Savings accounts and current accounts are the two types of bank accounts available in India. A current account serves businesses, whereas a savings account is intended for personal use.
A current account functions similarly to a bank account used by corporations, sole proprietors, trusts, associations, and more. A current account comes with a plethora of benefits for the account user, including free unlimited withdrawals & deposits, additional free cheques each month, simple transfers across branches, and an overdraft facility. Current accounts are essential for all professionals, business owners & organisations because of features like these.
These days, opening a current account is quick and uncomplicated. By going to your preferred bank, you can open a current account both offline and online. You can perform your study to identify the best current account that satisfies your company’s needs and specifications, then take the plunge.
You can create your account as soon as you select a bank. However, the bank does request a few documents.
Check out the paperwork needed to start a current account:
PAN cards are a common form of identity verification for business owners, vendors, professionals, organisations, and companies. Voter identification, a driving permit, as well as a passport are additional paperwork for individuals. Your address verification for opening a current account can be your phone and utility bills.
Proofs of your company’s existence:
As evidence of the legitimacy of your company, any one of the documents specified below shall be sufficient:
- A permit to import or export is issued by the director general of foreign trade.
- Licenses and registration are issued by municipal authorities. According to the Bombay Shops and Establishments Act 1948, this is a required document.
- A registration certificate issued by authorities in professional taxes.
- The proper certificate of GST registration.
- A state government certificate of business registration.
- Certificate of registration from SEBI or the Reserve Bank of India.
- The Food Safety and Standards Authority of India (FSSAI) licences.
Business address verification:
- Income Tax Bills of Property Tax and Water Tax Allotment Letter.
- Tax Deduction and Collection Account, which is also known as TAN.
- Property registration documents.
- Financial statement.
- Documents pertaining to title deeds to the property or rental registration documents.
The following documents are necessary, along with the ones listed above, if you are an NRI.
A client declaration that includes the following is required:
- The company does not engage in print media, real estate, or agricultural activities.
- The money is coming from a non-resident ordinary, non-resident rupee, or non-repatriable foreign currency account.
You require the following papers to create a current account as a limited liability partnership:
- Certificate for a Limited Liability Partnership.
- Know Your Customers of all partners.
- A limited partnership liability contract.
- A decision confirming the partner’s capacity as a signatory.
- List of partners along with their assigned partner IDs. The Ministry of Corporate Affairs provides this certificate.
These papers are needed if you’re creating a current account for a business.
- For a public limited company, a certificate of business startup is required.
- Memorandum of association.
- A certificate of incorporation.
- List of a company’s directors.
- Resolution of the board designating signatories.
Now you know all the documents that are required for opening your current account online.