Now, it is time that we intimate you with the knowledge to open a bank account in the name of such a firm. The reason for opening a bank account for the firm is to give the firm its own legal identity.
Why to open an account for a partnership firm?
While you must already be aware of the reason as to why a bank account is opened for a partnership firm, it is time that we shed a light upon its benefits:
- Adequate handling of large payments: With a proper bank account for a partnership firm, it is now easy to handle large volumes of receipts and payments. The process of payment processing is made much swifter.
- Limitless withdrawal: With a partnership firm bank account, limitless withdrawal is now a possibility.
- No restrictions to the deposits: No restrictions to the deposits made to the branch. Furthermore, the account holders can deposit the payments in other branches as well with only a nominal fee.
- Direct payment to the creditors: Cheques, DDs and pay orders can be issued using the current account and creditors can be paid directly.
- Receipts on behalf of customers: Banks can collect receipt on the customer’s behalf and the same money can be credited to the customer’s account later.
- Short term borrowing facilities: The account holder can enjoy overdraft facilities.
- Easy business transactions: Business transactions are made easy due to the presence of facilities such as internet banking and mobile banking.
Documents required to open a current account
In order to open the current account for a partnership firm, the following are the documents that are required to be submitted along with application for opening the account:
- A certified copy of the partnership deed
- The PAN card that is in the name of the partnership firm
- AADHar card of all the partners of the firm
- Address proof of the place of business
- ID proof of the partners of the firm
- If there partnership is registered, then you are going to need a partnership registration certificate
- A certified copy of any license that the partnership firm possesses. They can be:
- Mandi License
- Labour license
- Trademark registration certificate
- Liquor License
- Registration certificate by customs department
- Weights and measures registration certificate
- An NOC from the police department
- GST registration certificate
- SSI Registration or MSME registration certificate(if any)
- Startup Recognition Certificate (if any)
- EPF details of the partners of the firm
- SEBI registration certificate
- Income tax returns that were filed by the partners
- Copy of electricity and the phone bill.
When you submit these documents along with the application for account creation, you are going to get the account, almost instantly.