The process of starting any business can never be implemented without a valid bank account. Every entrepreneur knows by default that a current bank account is necessary in order to enjoy certain monetary relaxations or business transaction facilities that do not come with an ordinary savings account.
Holding a valid current bank account is integral for effective transactions without which it is virtually impossible to operate a business.
How to Open a Bank Account for Business
The procedure for opening a bank account starts with providing certain documents which begins with an important KYC form. ‘Know your customer’ document is a regulatory provision dictated by the RBI for keeping abreast of a customer’s current status of information. You will also be required to produce an updated KYC at frequent intervals as intimated by the bank. In addition you will be required to present various documents in relation to your nature of business.
A bank account can be opened on basis of your business documents and valid identity proofs.
Documents required for Opening a Current Account for Business Individuals
Identity proof (any one)
Pan Card/Passport/Voter Identity Card/Adhaar Card/ Drivers License/Senior Citizen Card/Arms License/Utility Bill (electricity/telephone) less than 3 months/ Certification of identity from any public figure of authority such as Counselor Id Form etc.
- Address proof (any one): Pan Card/Voter Identity Card/Passport/Drivers License/Municipality Bill/ Utility Bills/Consumer Gas Book/Bank Pass Book/Rental Agreement/Adhaar Card/Certification from Public Authority
- One passport size photograph
- Pan card or forms 49A and form 60 to prove pan application
- Payee cheque for opening account issued from savings account
Below listed are the necessary document requirements for different business structures:
Sole Proprietorship Business Bank Account
In order to open a bank account for sole proprietorship firm, written application must be given with details of the business name and address. Nature of business activity must also be mentioned? The following documents are required in such accounts
- Two entity proof of business establishment
- Letter of proprietorship in bank format
- Residence proof
- Business registration and licensing certificate by government authority
- Trade license of municipality under shops and establishments
- TAN registration
- Vat and CST certificate or application proof of the same
- Professional tax and sales tax registration
- Police license or PCB license
- Fire License
- Identity proof of proprietor (documents same as above)
- Residence proof of proprietor ( Documents same as above),
Bank Account for Partnership Firm
For opening a bank account for a partnership entity require documents such as identity and address proof of partners, contact numbers and the aforesaid documents.
- Business registration certificate
- Trade license or any other entity proof (TAN registration/shops & establishments certificate)
- Pan card in name of the firm
- Address proof in name of firm ( rental or lease agreement/sales deed)
- Partnership Deed
- Power of attorney to any partner or company representative for transaction authority
- Identity documents of the POA holder
- Utility bills in name of firms or partners
- Last 3 months bank account statement
- No Objection Certificate
Company Bank Account
If you are establishing a company, and want to open a company bank account, then all relevant documents such as phone number, mailing address, name of company and location of business must be furnished along with application. The documents to be submitted are as follows:
- Incorporation certificate
- Memorandum of articles
- Board of directors certification and resolution for opening an account
- Power of Attorney to any official employee or manager for transactional purposes
- Certificate of commencement of business in case of a public limited company
- Detailed list of directors
- Appointment and registration proof of al directors of the company
- Proof of identity of authorized signatories
- Registered address proof
- Shareholding pattern of the company
- Utility bills
- Power of Attorney granted to its managers, officers or employees to transact business on its behalf
- Copy of PAN allotment letter
- Copy of the telephone bill
Online Bank Account Opening
For assistance in opening a bank account online you could visit the sites of credible banks both in nationalized or private capacity, where a framework has been established to open a bank account online. All you need to do is upload your details and documents or alternately you can contact MyEfilings for assistance in the same.
MyEfilings’s timely assistance in Business Procedures
Now that you have understood the modus operandi of opening a bank account for business under several entities, it is imperative to get your documents in order before approaching the bank. If you require reliable assistance guaranteed to help you with documentation and registration for licenses as well as tax registration, you can visit myefilings.com. At MyEfilings, solutions are provided in all manner of registration and document organization for business purposes at affordable rates.