A new business usually needs a current account before anything else: to receive the share capital, collect from customers and pay GST. Banks follow the RBI's KYC directions, so the core documents are the same everywhere, but each bank has its own forms and may ask for more.
Private limited company or OPC
- Certificate of incorporation
- Memorandum and articles of association
- PAN of the company
- Board resolution approving the account and naming the authorised signatories
- KYC (PAN, Aadhaar or other officially valid document, photo) of the authorised signatories
- Details and KYC of beneficial owners: individuals who ultimately own or control more than 10% of the company
- Proof of registered office, if the incorporation documents do not match the current address
- GST certificate, where registered
A company incorporated through SPICe+ can apply for its bank account through the AGILE-PRO-S form filed with the incorporation, which saves a step. The subscription money for the shares must reach this account, and the bank statement is then used for the commencement of business declaration in INC-20A; see INC-20A filing.
LLP
- Certificate of incorporation
- LLP agreement
- PAN of the LLP
- Resolution or authority from the partners naming the signatories
- KYC of the designated partners and authorised signatories
- GST certificate, where registered
Partnership firm
- Partnership deed
- Registration certificate from the Registrar of Firms, where registered
- PAN of the firm
- Authority letter from the partners for the signatories
- KYC of the partners and signatories
Sole proprietorship
The account is opened in the business name but on the proprietor's KYC. The bank asks for the proprietor's PAN and an officially valid document, plus two documents that prove the business exists in the proprietor's name, such as:
- GST registration certificate
- Udyam registration certificate
- Shops and establishments licence or trade licence
- Professional tax registration
- Income tax return showing the business income
- Utility bills in the business name
Udyam registration is free and quick, and is often the easiest second document; see Udyam registration. See also sole proprietorship registration.
Avoiding delays
- Keep names and addresses identical across PAN, the incorporation certificate and KYC documents.
- Have the board or partners' resolution on letterhead, signed, with the exact signing rules (singly, jointly).
- Bring originals for verification, or use the bank's video KYC where offered.
- Expect the bank to verify the business address, sometimes with a visit.
Talk to Regikart
We incorporate the company or LLP with the bank account application, prepare the board resolution and signatory documents, and register GST and Udyam so the account opens without back-and-forth. See private limited registration and LLP registration, or call or WhatsApp +91 70444 94804.
Frequently asked questions
What documents are needed to open a current account for a private limited company?
The certificate of incorporation, memorandum and articles, company PAN, a board resolution naming the signatories, and KYC of the signatories and beneficial owners, plus GST registration where applicable.
Can a proprietorship open a current account without GST?
Yes. Banks accept two documents proving the business in the proprietor's name; Udyam registration, a shop licence or professional tax registration can serve instead of GST.
Who is a beneficial owner for a company's bank account?
An individual who ultimately owns or controls more than 10% of the company, or otherwise exercises control. The bank collects their KYC.
Can a new company open its bank account during incorporation?
Yes. The AGILE-PRO-S form filed with SPICe+ includes an application for the company's bank account.
Why does the bank statement matter after incorporation?
Subscribers must pay for their shares into the company's account, and that statement supports the INC-20A declaration due within 180 days of incorporation.
About the author
Regikart CS Team
Company Secretaries at Regikart. Want to discuss this in the context of your business?
