The procedure for Opening a current bank account for the Private limited company is very easy. Private limited companies prefer to open a current bank account rather than opening a saving bank account. As saving bank account has the limit on the maximum number of transactions that can be carried out. Current accounts, on the other hand, have no transaction limits. Thus, all entrepreneurs open current accounts as soon as they start their business. Strict KYC rules have been prescribed by Reserve Bank of India for opening a current bank account. For Private Limited Companies the Reserve Bank of India has prescribed certain documents to be submitted to the bank in order to open a current account with any bank.
Documents required by banks to open a current account in the name of company
As per the KYC norms, following documents are required to be submitted with bank by private limited company-
- Certificate of Incorporation
- Memorandum of Association and Article of Association
- Certified true copy of board resolution for opening bank account and the identity of those who are authorized to open a bank account.
- List of Directors as per banks format
- Copy of address proof of registered office of company (If address of registered office is different from the one given in Certificate of Incorporation)
- Identity proof of all directors and authorized signatories
- PAN Card
- Adhar card
- Voter Identity Card
- Driving license
- Arms License
- Senior citizen card issued by state government or central government
- Fisherman identity card issued by state government or central government
- The shareholding pattern of the private limited company as per bank's format.
- PAN card of company or PAN card application acknowledgment copy(for companies which are incorporated within 90 days of application for opening of bank account)
- Proof of appointment of current director(s) in the case of a change in the board. As a proof copy of minutes of the board meeting in which such decision is taken shall be submitted.
- Proof of resignation of director(s) in the case of a change in the board.
In order to open a current account, every private limited company must file the account opening form along with the documents mentioned above. Further, the company is required to submit the certified copy of the board resolution that will specifically indicate that the company desire to open a bank account. In addition to this, the resolution will specify the name of the directors who are authorized signatories both solely and jointly. Moreover, it will specify that the Know your customer(KYC) will be updated from time to time.