Be it a large corporation or a small venture, a business bank account is essential for running a business smoothly and efficiently. A business bank account, also known as a current account, provides unlimited number of transactions, overdraft facility, internet and mobile banking, multi-location transfers, etc., thereby facilitating business processes.

With leading banks, you can easily open a current account without much documentation. However, the documents required may vary depending upon the type of the business. Ahead, we are going to elaborate on the most common requirements for opening a current account for different entities.

Documents for proprietorship firm

  • Registration certificate if your firm is registered
  • Passport size photo of the proprietor
  • PAN card
  • Trade license or Shops and Establishment license in case of retail business.
  • Income Tax return
  • Utility bills such as electricity, telephone bill, etc. in the name of the firm

Documents for partnership firm

  • Registration certificate of the business
  • Partnership deed
  • Partnership letter
  • Address and identity proof of the partners
  • Passport-size colour photographs of authorised signatories of the business bank account
  • An official document recognizing the partners holding the Power of Attorney (POA)
  • Trade License

Documents required for private/public company

  • Incorporation certificates with Memorandum of Association (MOA)
  • Board resolution
  • List of directors
  • PAN card of the company
  • Company’s address proof
  • Identity as well as address proof of all the authorised signatories
  • Passport-size colour photographs of all the authorised signatories of the account

Irrespective of the type of the firm, you would have to submit your identity and address proof while opening a current account. You can submit any of the below-mentioned documents for establishing your identity and address:

Acceptable identity proof

  • Passport
  • PAN card
  • Voter’s Identity Card
  • Driving License
  • Letter issued by the Unique Identification Authority of India (UIDAI) containing the name, address and Aadhaar number
  • Letter from a recognized public authority or public servant confirming the identity and residence of the customer to the satisfaction of bank

Acceptable address proof

  • Telephone bill
  • Bank account statement
  • Letter from any recognized public authority confirming your residence
  • Electricity bill
  • Ration card
  • A rent agreement indicating the address of the customer duly registered with the state government or similar registration authority

Now that you have a fair understanding of current account opening documents, let’s proceed to check out the steps to open a current account:

How to open a Current Account?

  • Visit the bank’s website and check your eligibility criteria for opening a current account
  • Download the account opening form available on the bank’s website
  • Fill up the form with necessary details. Make sure that the details entered are accurate
  • Submit the form along with the necessary documents. The bank will get in touch with you once your current account has been opened

A current account will not only facilitate your business transactions but also reflect your seriousness towards running the business. This can further help you avail a business loan in the future as the lender may consider you a responsible borrower. So, if you are a business owner, it’s time you gather all the required documents and open a current account with your preferred bank, today.