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Open Current Account after Pvt Ltd Company Registration Online

Pvt Ltd Company Registration

Have you registered your Private Limited Company? The first step after the Pvt Ltd Company Registration Online is to open a current account for your company. A current account is meant for professionals, businesses, associations, trusts, societies, and institutions. It provides numerous benefits as compared to a savings account, and thus, it is a convenient account choice. Businesses can’t use the regular savings account as it has several restrictions, including limited transactions. When you open a current bank account, it not only simplifies the financial operations but also keeps your personal and business finances separate. In this blog, we will discuss everything about opening a current account after the Private Limited Registration.

But before that, let’s have a quick glimpse at Private Limited Registration Online–

A private limited company is the most popular entity governed by the MCA, i.e., the Ministry of Corporate Affairs. A Private limited company has been held privately, especially for small businesses. Liability of the members of a private company is limited to the shares they hold. The general public can’t trade the shares of a Pvt Ltd Registration on the stock exchange. The company is a separate legal entity.

Importance of Opening Current Account after Pvt Ltd Company Registration Online

The company will get its PAN number after the successful registration of the Private Limited Company. After receiving the PAN number, it is essential for a Pvt Ltd Company registration to open a bank account with the name of the company. Here in this section, we will discuss the importance of opening a current account after Pvt Ltd Company Registration. Let’s talk about it-

  • It is essential to open a current account of Pvt Ltd Company.
  • By opening a current account, shareholders, directors, and promoters can make all the company-related transactions in the company account rather than their personal or business account.
  • The current account of the Private Limited Registration can keep the business finances separate from the personal finances of its directors or shareholders. A private limited company can have more than one current account.
  • A company’s current account has been required for tax purposes. The company’s account helps in getting information about all the transactions related to business. These transactions include payment of salaries & dividends, taxes, transactions with creditors & debtors, etc.

Process of Opening the Current Account after Pvt Ltd Company Registration Online

The process of opening a current account after the registration of a Private Limited Company is simple but includes a number of steps. Here, in this section of the blog, we will give you a comprehensive guide to the step-by-step process of opening the company’s account. Some banks may provide the option of an online application form for opening a current account. Here are the steps include-

In the case of Offline Applications Form

  • Step 1: Choose the Right Bank

First of all, you have to choose the right bank & its branch by considering various factors, including branch proximity, banking services, customer service, and fees & charges.

  • Step 2: Gather the Required Documents

After that, you must gather all the necessary documents to open the company account hassle-free and successfully. You can avoid delays in the account opening process by collecting all the crucial documents in advance.

  • Step 3: Pass the Board Resolution

Then, you have to pass the board resolution in a board meeting stating the opening of the company’s bank account. This resolution includes the name of the bank & branch, the name of the authorized signatories, and the signature of all the directors of the company.

  • Step 4: Visit the Bank Branch & Fill Application Form

After that, you have to visit the selected bank branch to obtain the application form for your current bank account and fill out the application form. 

  • Step 5: Submit the Documents

Then, you have to submit the application form along with all the required documents. The bank will verify the details you filled in and may ask for additional information if required.

  • Step 6: Verification 

After that, a verification process was conducted by the bank, which included KYC verification of the directors of the company and verification of the business legitimacy.

  • Step 7: Account Activation

After the successful verification, the bank will activate your company’s current account. You will get the account number, IFSC Code, checkbook, debit card, and online banking credentials of your respective account.

In the case of the Online Application Form

  • Step 1: Choose the Right Bank

First of all, you have to choose the right bank & its branch by considering the different factors, including branch proximity, banking services, customer service, and fees & charges.

  • Step 2: Gather the Required Documents

After that, you must gather all the necessary documents to open the company account hassle-free and successfully. You can avoid delays in the account opening process by gathering all the essential documents in advance.

  • Step 3: Pass the Board Resolution

Then, you have to pass the board resolution in a board meeting stating the opening of the company’s bank account. This resolution includes the name of the bank & branch, the name of the authorized signatories, and the signature of all the directors of the company.

  • Step 4: Visit the Online Website Of the bank

Then, you have to visit the online website of the bank where you want to open the current account of your company.

  • Step 5: Fill the Application Form

After that, you have to select the option of “Business Current Account” on the website, choose the type of current bank account, click on the “Apply Now” button, and then fill out the application form.

  • Step 6: Submit the Application Form

Then, after filling out the online application form for the current bank account, submit it by clicking on the “Submit” button.

  • Step 7: Customer Service Executive

After the successful submission of the application form of the current bank account of your company, a customer care executive will contact the company in order to complete further formalities.

  • Step 8: Submit the Documents

The company has to submit all the required documents to open your company’s current bank account.

  • Step 9: Verification & Activation

After the successful KYC verification of directors, the bank will activate your company’s current bank account.

Important Announcement

Now, MCA itself provides the option of opening a current account for Private Limited Companies. You can open a bank account via the AGILE Form introduced by MCA. You need to enter your details, including the bank name you prefer. AGILE-PRO-S, i.e., Form INC 35, is a part of SPICe+, i.e., Form INC 32. The AGILE-PRO-S has been filed for

  • Application for GSTIN
  • EPFO Registration
  • ESIC Registration
  • Profession Tax Registration
  • Opening of Bank Account
  • Shops & Establishment Registration

Benefits of Opening the Current Account after Pvt Ltd Company Registration

It will be very beneficial to open a current bank account after completing the Private Limited Company Registration process. Here, we will discuss the benefits of opening a current account-

  • Overdraft Facility

The bank provides the facility of overdraft to the current bank account holders, i.e., Private Limited Company. Overdraft means a short term loan on which a bank may or may not charge the interest. It will help in fulfilling the needs of working capital of business.

  • No Restrictions on Minimum Transactions

There will be no restrictions on the minimum transactions of a Private Limited Company.

  • Organize Business Transactions

The company’s current bank account organizes the business transactions and also helps in the process of transaction

  • Easy Payments & Collections

Company’s current bank account facilitates the flawless business payments & collections without any restrictions.

  • Professionalism

The current account of a Private Limited Company helps in maintaining a professional image in front of clients & vendors. 

  • Convenient Transfers & Deposits

The company’s current account allows the more convenient transfer of funds to the other banks and branches. So it becomes easy to collect the payments from the small customers.

Here are the benefits of opening a current account of the company after the private limited company registration in India. So it will be better to open a current account for the smooth business related transactions.

Documents Required for Opening the Current Account after Pvt Ltd Company Registration Online

As per the KYC norms of RBI, the company has to submit all the essential documents at the time of opening a current account. Here is the list of all the requisite documents-

  • Certificate of Incorporation
  • Resolution of the Board of Directors to open an account along with the appointment of the authorized person who operates the current bank account of the company
  • Power of attorney granted to the officers, employees, and managers of the company to transact on behalf of the company.
  • DIN i.e. Director Identification Numbers of all the directors of the company
  • MOA i.e. Memorandum of Association and AOA, i.e. Articles of Association of the company
  • PAN Card of the company
  • Updated list of directors
  • Registered Address proof of the company (rent agreement, electricity bill, or any other utility bill)
  • ID proof of all the directors and authorized signatories (PAN Card, Aadhaar Card, Passport, Voter ID, Driving License, etc.)
  • Proof of the appointment of current directors (if available)
  • Shareholding pattern of the company as per the bank format

Final Words

It will be easy to open a current bank account after Private Limited Company Registration in India if you are well-prepared with the essential documents and information. You can ensure a smooth and hassle-free experience of opening a current account by choosing the right bank, understanding the requirements, and following the steps given in this comprehensive guide. You can also seek the expert guidance of professionals like Legal Pillers. Legal Pillers will help you in opening a company’s current bank account after Private Limited Company Registration process. So, what are you waiting for? Contact us now!

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