Companies Bank Account

29/12/2020 3 By indiafreenotes

One of the first steps undertaken after incorporating a private limited company is opening of the current account in the name of the Company. A company can open one or more current account in any bank and is required to transact business. The procedure for opening private limited company bank or current account along with the documents required.

Current Account for Private Limited Company

Opening a current account for a private limited company is easier than the opening of the current account for a sole proprietorship firm as a company is a registered legal entity by law. Therefore, once a company is incorporated, a bank account can be opened in the name of the business with just a few documents, unlike proprietorship wherein the existence of the sole proprietorship must be established through various tax registrations. As per Reserve Bank of India’s KYC norms, the following are the documents necessary to open a current account in the name of the Company:

  • Certificate of incorporation and Memorandum & Articles of Association;
  • Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account;
  • Power of Attorney granted to its managers, officers or employees to transact business on its behalf (if applicable);
  • Copy of PAN allotment letter;
  • Copy of the telephone bill;

Documents Required for Opening Company Current Account

Based on the above RBI KYC norms, various banks have formulated procedures and list of documents required to open a company current account. The following is an extensive list of documents mandatory for opening a current account in the name of the Company:

  • Certificate of Incorporation of Company
  • Board resolution for opening a current account
  • Memorandum of Association (MOA) & Articles of Association (AOA)
  • Latest list of Directors as per the bank’s format
  • Registered office address proof of the company (Only required if different from the address mentioned in the Certificate of Incorporation)
  • Identity proof of all Directors / Authorized Signatories
    • PAN card of Director
    • Passport
    • Voter Identity Card
    • Driving License
    • Aadhaar card issued by Unique Identification Authority of India (UIDAI)
    • Senior Citizen Card issued by State/Central Govt
    • Fisherman Identity card issued by State/Central Government
    • Arms License
  • Proof of appointment of current director/s (in case Board of Directors has changed over time)
  • Proof of resignation of Director/s (in case Board of Directors has changed over time)
  • PAN Card of the company or PAN Card Application Acknowledgement (for New Companies which are less than 90 days)
  • Share Holding Pattern of the company as per the bank’s format