**What is a Current Account?**
In India, banks offer two main types of accounts: savings and current accounts. While savings accounts are designed for personal use, current accounts cater mainly to businesses.
Current accounts are frequently used by businesses, trusts, sole traders, and other associations. They function similarly to regular bank accounts but come with several benefits. These benefits include unlimited withdrawals and deposits, free monthly cheque usage, easy fund transfers between branches, and an overdraft facility. These features make current accounts essential for professionals, business owners, and various organizations.
Opening a current account is usually quick and simple, whether you choose to do it online or offline. To choose the right current account, it’s important to understand your business’s specific needs.
Before your account is activated, you’ll need to provide certain documents. Here are the required documents for opening a current account:
**Proof of Identity:**
For vendors, business owners, professionals, and companies, a PAN card is commonly accepted. Other valid IDs include Voter ID, driving license, and passport. Utility bills can serve as address proof.
**Proof of Business Existence:**
You can prove the authenticity of your company with:
– A foreign trade permit from the Director General of Foreign Trade.
– Licenses and registrations from municipal corporations, as required by the Bombay Shops and Establishments Act 1948.
– Professional tax registration certificate.
– GST registration certificate.
– State government business registration certificate.
– Certificates from SEBI or the Reserve Bank of India.
– Licenses from the Food Safety and Standards Authority of India (FSSAI).
**Verification of Business Address:**
Documents like Income Tax bills, property or water tax allotment letters, tax deduction and collection account number (TAN) documents, property registration papers, financial declarations, and proof of property ownership or rental agreements are required.
**For Non-Resident Indians (NRIs):**
NRIs may need to provide additional documents such as a declaration stating they are not involved in print media, real estate, or agricultural businesses, and evidence of funds from non-resident ordinary accounts, non-resident rupee accounts, or non-repatriable foreign currency accounts.
**For Limited Liability Partnerships (LLPs):**
Documents required include:
– Limited Liability Partnership certificate.
– KYC documents for all partners.
– Limited partnership liability contract.
– Proof of the designated partners’ roles as signatories.
– A list of partners with IDs from the Ministry of Corporate Affairs.
**For Public Limited Companies:**
Needed documents include:
– A startup certificate for the company.
– Memorandum of association.
– Incorporation certificate.
– List of company directors.
– Board resolution indicating designated signatories.
This guide provides a comprehensive list of the documents needed to open a current account online.