Managing your finances effectively is crucial to your business’s success as a limited company. And finding the best current account for your business is the first step. Opening an existing account for a little company can seamlessly empower efficient banking services and financial tools if you choose the right banking partner. With the correct, current version, you will have the convenience and flexibility to easily manage your company’s finances.
How you can open a current account for your limited company
- Choose the right bank: The first step in opening an existing account for your limited company is choosing the right bank. Many banks in India offer current accounts, but you’ll want to find one that best suits your company’s needs. Consider location, fees, services, and reputation when selecting a bank.
- Gather the required documents: Once you have chosen a bank, you must gather the necessary documents for opening a current account. These documents may differ a little from one bank to the next, but in general, you will require the following:
- Certificate of Incorporation
- Memorandum and Articles of Association
- Board resolution authorizing the opening of the account and the signatories
- PAN card of the company or directors
- DIN (Directors Identification Number) of the directors
- Identity proof and address proof of all signatories
- Registered address proof of the company
- GST Registration Certificate
- Other relevant documents, as requested by the bank
- Visit the bank: Once you have gathered all the necessary documents, visit the bank branch where you wish to open the current account. Take along all the required documents and copies for verification. It’s advisable to schedule an appointment with the bank beforehand to avoid any delays.
- Fill out the application form: The bank will provide an application form to open a current account. Fill in the state and provide all the relevant details, including your company’s name, address, contact information, and other required information.
- Submit documents: Submit all the required documents and the filled application form to the bank. The bank may ask for original documents for verification, so carry them with you.
- Complete KYC formalities: As part of the KYC process, the bank may require you to provide additional documents or information. This may include details of the company’s activities, projected turnover, and other financial information. Cooperate with the bank and provide all the information required to complete the KYC formalities.
- Deposit the initial amount: After the bank approves your application, you must deposit the initial amount required to open a current account. The minimum balance requirement may vary depending on the bank and the type of existing account. Make sure to inquire about the minimum balance requirement and deposit the necessary amount to activate your account.
- Collect the checkbook and other account details: Once your current account is activated, the bank will provide you with a checkbook, account number, and further information. Collect these documents and preserve them in a secure location for future reference.
To wrap up
A current account opening for your limited company in India is important to manage your finances. Follow the steps mentioned above, and your existing account will be up and running quickly. Remember to choose a bank with the best features, benefits, and fees that suit your business requirements.