As a limited company, managing your finances effectively is crucial to your business’s success. And finding the best current account for your business is the first step. Opening a current account for a limited company can be a seamless process that empowers your business with efficient banking services and financial tools if you choose the right banking partner. With the right current account, you will have the convenience and flexibility to manage your company’s finances with ease.
How you can open a current account for your limited company
- Choose the right bank: The first step in opening a current account for your limited company is choosing the right bank. There are many banks in India that 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 will need to gather the documents required for opening 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 authorising 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 form 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 along with the filled application form to the bank. The bank may ask for original documents for verification purposes, 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 necessary information to complete the KYC formalities.
- Deposit the initial amount: After the bank approves your application, you will need to deposit the initial amount required to open a current account. The minimum balance requirement may vary depending on the bank and the type of current account. Make sure to inquire about the minimum balance requirement and deposit the necessary amount to activate your current account.
- Collect the chequebook and other account details: Once your current account is activated, the bank will provide you with a chequebook, account number, and other relevant details. Collect these documents and preserve them in a secure location for future reference.
To wrap up
Current account opening for your limited company in India is important to manage your finances. Follow the steps mentioned above, and you will have your current account up and running in no time. Remember to choose a bank that offers the best features, benefits, and fees that suit your business requirements.
