A Current Account is essential for the operation of your business. To put it simply, it is an account where you are not limited with a fixed number of transactions. Unlike a Savings Accounts where there is a limit to the amount of cash that can be withdrawn or deposited, Current Accounts are the most liquid ones and are used for heavy transactions.
There is no interest charged on the Current deposit but banks may charge you a small fee for their services. These accounts are great for transacting employee salaries as well. But make sure you choose your bank after some research, since every transaction is charged. Go for banks which provide adequate number of free transactions according to your needs and budget.
A current account can be opened by a minor who is 14 years or above. A person or an organization is not allowed to open more than one Current Account and it can be opened by private as well as public limited companies, partnership firms, sole proprietorship firms, trusts, clubs and associations. The initial deposit required ranges between Rs. 5000 – Rs. 25000, depending on the bank.
Opening a Current Account is simple, here’s how:
- Collect the application form from the desired bank and fill it
- Submit passport size photographs for every accountholder – proprietors, partners, office-bearers, trustees or Directors
- Submit a proof of identity – PAN Card/ Voter ID Card/ Passport/ Driving License
- Submit a proof of address – Latest Telephone/Electricity Bill
- Submit the following required documents:
- Trusts –
- Copy of the trust deed
- Certificate of Registration
- List of Trustees with residential addresses
- Bye-laws of the association or club
- Copy of the registration certificate
- Photographs of the members operating the account Associations or Clubs
- Photographs of the members operating the account
- Copy of the resolution by the Board authorising the members concerned to open and operate the account
- Copy of the resolution by the trustees authorising the members concerned to open and operate the account
- Private and Public Limited Companies –
- PAN or GIR No.
- List of Directors with their respective residential addresses
- Memorandum and Articles of Association
- Board resolution authorising the opening and operation of the account
- Certificate of Incorporation and Commencement of Business
- Partnership Firms –
- Shop and Establishment Certificate
- Partnership Deed and Registration Certificate
- Letter from partners approving the persons concerned to open and operate the account
- Proprietorships –
- PAN or GIR No.
- Latest passport-size photographs of all the authorized signatories
- Letter of HUF duly signed by Karta and all Co-Parceners
- Names of Karta and Co-Parceners with their respective residential addresses
- Letter of proprietorship, duly signed by the proprietor in his or her individual capacity (with a rubber stamp) from Hindu Undivided Family
- Certificate from State Government or a Statutory Body or Trade License or Sales Tax Certificate or Shop and Establishment Certificate
- Trusts –
- As an additional measure, submit an Introduction by an existing accountholder in the particular bank, who has been holding the account for a minimum of six months which is KYC Complied
Having a Current Account is an integral part of any business, the delimitations in transactions make it very useful for organizations and businesses that have to deal with a large amount of cash flow every day. From paying your employees to receiving payments from clients or customers, this account will be used in every sphere of your transactions.