Open a Current Bank Account for a Private Limited Company

The procedure for opening a current bank account for a Private Limited Company (PLC) is very simple and easy. 

PLCs prefer to open a current bank account rather than opening a savings bank account since a savings bank account has the limit on the maximum number of transactions which can take place. Current accounts, on the other hand, have no transactional limits. Thus, all entrepreneurs open current accounts as soon as they start their businesses.

Documents required for opening a Current Account for PLC

Although a private limited company is not mandated to open a current account after its establishment, it is highly recommended to do it. 

In order to open a current account for a Private Limited Company, the following documents are required:

• Certificate of Incorporation
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Copy of PAN Card Allotment Letter
• Copy of the latest Electricity or Telephone Bill
• Shop License Registration
• Resolution of the Board of Directors to open a current account and identify those who are authorized to operate such an account
• Power of Attorney granted to the PLC’s managers, officers or employees to transact business on its behalf, if applicable
• DIN (Directors Identification Number) of the company’s directors
• Latest list of the PLC’s directors according to the format prescribed by the bank
• Identity proof of all directors/authorized signatories of the PLC
• The PLC’s Shareholding pattern
• Beneficial owner information, if applicable

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 desires 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.

Benefits of Opening a Current Account For PLC

Opening a current account for PLC comes with a lot of benefits such as:

• Current Account provides easy access to an overdraft facility which assists the PLCs to meet their working capital requirements. 
• The current account holder has no restrictions on the minimum transactions.
• A higher number of free checks are offered per month under a current account.
• In order to meet the business’ cash needs, the current account holders get restriction-free deposits and withdrawals.

Conclusion

Once the incorporation of the company takes place, opening a bank account of a company is crucial for conducting business transactions. A current bank account is an ideal choice for PLCs since it ensures separate financial transactions for businesses. A current bank account provides a multitude of benefits to the company in its daily operations. If you have any concerns or queries regarding opening a current account for a private limited company, you can contact our team at Registrationwala.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.