A current account is primarily used by businesses, companies, and firms to conduct their daily transactions. To open a current account, one must comply with the set of rules and regulations issued by the Reserve Bank of India (RBI) and the bank where the account is being opened. Here are the documents required to open a current account in India:
Business Registration Documents
To open a current account in the name of a business or company, it is essential to provide registration documents. These may include:
Certificate of incorporation
A certificate issued by the Registrar of Companies (ROC) that confirms the legal existence of the company.
Memorandum of Association (MOA)
A legal document that outlines the company’s objectives, rights, and responsibilities.
Articles of Association (AOA)
A document that specifies the rules and regulations for the company’s operations.
Identity Proof
A valid identity proof of the authorized signatory is mandatory to open a current account. The documents that can be submitted as identity proof are-
- Aadhaar Card
- Passport
- Driving License
- Voter ID Card
- PAN Card
Address Proof
An address proof of the authorized signatory is also necessary to open a current account. The documents that can be submitted as address proof are-
- Aadhaar Card
- Passport
- Driving License
- Voter ID Card
- Utility Bills
PAN Card
A Permanent Account Number (PAN) card is mandatory to open a current account. PAN card is a ten-digit alphanumeric number that acts as an identification code for individuals and entities who pay taxes.
KYC Documents
Know Your Customer (KYC) documents are necessary for every account opening in India. These documents are required to verify the customer’s identity and address. The following documents can be submitted as KYC documents-
- Passport
- Voter ID Card
- Driving License
- Aadhaar Card
- PAN Card
- Utility Bills
Bank Account Statement
A bank account statement for the last six months is necessary to open a current account. This document is used to evaluate the financial health of the company.
Business Registration Proof
In addition to the registration documents, it is essential to provide proof of the company’s registration. The documents that can be submitted as business registration proof are-
- Sales tax registration certificate
- Service tax registration certificate
- GST registration certificate
- Professional tax registration certificate
Letter of Reference
Some banks may require a letter of reference from an existing customer or an industry expert. The letter should contain information about the company’s financial standing, creditworthiness, and reputation.
Board Resolution
If the account is being opened on behalf of a company, then a board resolution is necessary. The resolution should authorize the opening of the current account and nominate the authorized signatory.
Business Profile
Some banks may require a business profile that contains information about the company’s products and services, industry, and competition.
Here are some additional points to consider when opening a current account in India-
Business Type
The documents required may vary based on the type of business. For instance, a partnership firm may need to provide a partnership deed in addition to the registration documents, while a sole proprietorship may only require the proprietor’s identity and address proof.
Authorized Signatory
The authorized signatory is the person who has the authority to operate the account on behalf of the company. It is important to ensure that the authorized signatory’s identity and address proof documents are in order, as any discrepancies can delay the account opening process.
Minimum Balance Requirement
Most banks require a minimum balance to be maintained in a current account. This amount can vary based on the bank and the type of account. It is important to check the minimum balance requirement before opening the account.
Charges and Fees
Banks may charge various fees for operating a current account, such as transaction charges, chequebook charges, and annual maintenance charges. It is important to understand these charges and fees before opening the account to avoid any surprises later on.
Additional Services
Some banks may offer additional services, such as online banking, mobile banking, and SMS alerts, with their current accounts. It is important to understand these services and their fees, if any, before opening the account.
In conclusion, opening a current account in India requires several documents to comply with the RBI’s regulations and the bank’s policies. It is essential to provide accurate and up-to-date documents to ensure a hassle-free account opening process. Additionally, it is advisable to check with the bank about any additional documents or requirements specific to the bank’s policies.
