As a business owner, one of the essential financial things you will need is a current account. Whether you are just starting your business or expanding your operations, a current account is necessary to manage your daily financial transactions. But what exactly is a current account?
A current account is a bank account primarily used for business transactions. It is an account in which individuals, businesses, and other organisations can deposit and withdraw money when required. Current accounts typically have no limit on the number and amount of transactions, but they do not earn any interest on the deposited amount.
The primary purpose of a current account is to facilitate regular and frequent transactions, such as payment of salaries, suppliers’ bills, and other business expenses. They usually require a higher minimum balance than savings accounts and may charge fees for various services, such as cash deposits, cash withdrawals, and cheque book issuance.
If you are planning to open a current account in India, there are certain current account opening documents you will need to provide to the bank to complete the process. Here is a checklist of the documents required based on the type of current account:
Sole proprietorship
- Identity proof: It can be a PAN card, Aadhaar, voter ID, passport, or driving license.
- Address proof: It can be a recent utility bill, Aadhaar, passport, driving license, or voter ID.
- Sole proprietorship registration proof: It can be a GST registration certificate, trade license, sales tax registration, professional license, or any other applicable registration certificate.
- Business address proof: This can be a recent utility bill, property tax receipt, rental agreement, or any other applicable document.
- Business PAN card: It is advisable to have a separate PAN card for your business. You will need to provide your business’ PAN card and individual PAN card.
- Bank statements: You may need to provide your bank statements for the last 6 months to demonstrate the financial health of your business.
- TAN allotment letter issued by NSDL
Public or private limited companies
- Certificate of commencement of business
- Memorandum and Articles of Association of the company
- PAN card of the company
- List of shareholding pattern on letterhead
- Board resolution to open a current account and authorised signatories
- Identity proof of all signatories
- Address proof of all signatories
- Address proof of the company
- Recent passport-sized photographs of all signatories
- Bank statements of the company
Limited liability partnership
- Certificate of incorporation of LLP
- LLP agreement
- PAN card of LLP
- Identity proof of all partners
- Address proof of all partners
- Address proof of LLP
- Partnership deed or other relevant registration documents
- Recent passport-sized photographs of all partners
- Bank statements of partners
Partnership firms
- Partnership deed
- PAN card of the partnership firm
- Identity proof of all partners
- Address proof of all partners
- Address proof of the partnership firm
- Recent passport-sized photographs of all partners
- Bank statements of partners
Hindu Undivided Family/Joint Hindu Family (HUF)
- PAN card of the HUF
- Deed of declaration of the HUF
- Identity proof of the Karta (head of the family)
- Address proof of the Karta
- Address proof of the HUF
- Recent passport-sized photograph of the Karta
- Bank statements of the HUF
- Specimen signature of the Karta
Conclusion
Opening a current account is an important step for any business and having the right documents in place can make the process much smoother. By gathering the necessary documents and working with a trusted banking partner, you can ensure a hassle-free experience and focus on growing your business.
