After the incorporation of a private limited company, you also need to adhere to several compliances. These include conducting the first board meeting, appointing a statutory auditor, opening a private limited company bank account, obtaining the certificate of commencement of business, etc. A Pvt Ltd Company must open a current account for business transactions. In this article, we will take you through the steps to open a private limited company bank account along with the required documents.
The process for opening a private limited company bank account
Here is a quick walkthrough of the process to open a private limited company bank account:
- You need to hold a board meeting. Further, the Board of Directors must pass a resolution for opening the account.
- A private limited company can open a current account. However, you need to determine the type of current account that suits your requirements.
- Find the bank that offers the kind of account that you need.
- Submit the account opening form along with the required document.
- Also, provide the initial funding cheque for the account. Remember, this cheque needs to come from the shareholders of the company. Also, the amount needs to match the value of the shares that they have subscribed to.
While the process is simple, you need to get all the documents right to open the account. Here is a detailed list of documents:
The Reserve Bank of India (RBI) has listed some KYC norms for companies to open a bank account. Further, based on those norms, here is a detailed list of documents that you might need:
- The Board Resolution for opening the company’s account
- Also, the Certificate of Incorporation of the Company
- Copy of Memorandum of Association and Articles of Association
- Further, identity proof of all Authorized Signatories and/or Directors from the list below:
- Aadhaar card
- Arms License
- Driving License
- Fisherman Identity card issued by State/Central Government
- PAN card of the Director
- Senior Citizen Card issued by State/Central Government
- Voter Identity Card
- The bank will provide a format to submit the latest list of directors. Submit it with the relevant details.
- Copy of PAN Card of the company.
- Proof of appointment/resignation of the directors.
- Also, if the registered office of the company is different than that mentioned in the Certificate of Incorporation, then you need to provide proof of the registered office of the company.
- The bank will provide a format to submit the shareholding pattern in the company. You must also submit the same with relevant details.
Remember, as a private limited company, you will conduct all your financial transactions through your bank account. Hence, look for a bank that understands your business requirements before opening a private limited company bank account. Many banks offer facilities like overdrafts, discounted remittances for businesses having frequent offshore transactions, etc. Therefore, research well and follow the process mentioned above to open the account.