How to Open a Bank Account of a Private Limited Company?
Reserve Bank of India is strict when it comes to KYC (Know Your Customer) norms. But that's not a problem with companies. Since companies have a separate legal identity it is quite easier to open a current account. After receiving the Certificate of Incorporation (COI), one of the main tasks is to open a Bank Account of a Private Limited Company as a current account in bank. If you have formed a private limited company then you need to keep a balance of ₹1 lac (depending upon the bank) in it. Bank account is also required to allot shares to subscribers of Company's Memorandum of Association (MOA). A private limited company can have as many bank accounts as it deems fit.
The documents normally required to open a current account in a bank are:
- Certificate of Incorporation
- Memorandum of Association
- Articles of Association
- Board resolution finalizing the opening of a current account
- Updated and latest list of directors and that too as per bank's requirement
- Address proof of registered office, if the address mentioned in the certificate of incorporation is different
- ID proof of all the authorized signatories and directors, viz. Aadhar Card, Passport, Driving License, Voter ID, PAN Card, Arms License etc.
- Proof that the current mentioned directors are appointed, that is, a copy of minutes in the Board meeting they are appointed or the letter of appointment
- Resignation letter of a director, in case one resigns from the Board
- Share holding pattern of the private limited company as per bank's format
- PAN card of the company. In case of a newly formed company, the acknowledgement received while submitting the PAN application can also be submitted as the PAN card takes few days to be received.
All the above mentioned documents need to be submitted along with the account opening form. The company needs to submit a certified true copy of the Board resolution. The resolution will expressly say that the company wants to open an account with the Bank.
It will also specify the name of directors who are authorized signatories, both individually and jointly. The Board resolution will also specify that the KYC will be updated from time to time in case of changes.
At Registrations India we can provide you with the service of Introduction with Banks free of charge for your Bank Account. Please note, the arrangement is completely for introduction purposes, you may choose to open or not open your Bank Account with the Bank at your will. You can have a thorough discussion with the bank for your needs.
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