How to Open a Current Account for a Private Limited Company?

Narendra Kumar

04 Dec, 2020

What is a private limited company? In India, Pvt Ltd Company registration is a very popular legal structure for setting up of the most of the business forms. A private limited company is a form of privately held business in which the shares of the company are prohibited from being publicly traded. In this article, we will tell the procedure for opening a current bank account for Private Limited Company?

According to the provisions of Companies Act, 2013, a Private Limited Company should be having a minimum of 2 members, and the number of members can go up to 200. For the registration of a Pvt. Ltd company, it must have directors with limited liability to their shares. A private limited company gets registered within ten working days. In the case of death, insolvency or bankruptcy, a private limited company will keep on existing in the eyes of the law, also referred to as perpetual succession.

After overcoming a lot of challenges, your Private Limited is finally incorporated. The second step is to open a Bank Account of the Company. A company is in a position to open more than one account, but it should have a basic account after it has been incorporated.

All the enterprises have to open a bank account necessarily in the name of the business after starting the private limited company. This account establishes your reliability in the marketplace. It is not compulsory. In this article, we get to know about the procedure for opening private limited company bank or current account with the documents required.

The Documents Required for Opening a Current Bank Account for Private Limited Company

• Certificate of Incorporation and Memorandum as well as Articles of Association
• Resolution by the Board of Directors to open an account and also identify that who has the power to operate the company account
• Power of Attorney granted to its employees, officers, and managers to transact the business on company’s behalf
• DIN (Directors Identification Number)
• Board Resolution for opening the Current Account.
• An updated list of the Directors and a copy of Form-32 (if the directors are are having an identity different from Articles of Association)
• Registered Address proof of the company, as registered with the ministry of corporate affairs
• ID Proof of all the working Directors.
• PAN Card of Director
• Passport
• Voter ID Card
• Driving License
• Adhaar card
• Arms License
• Senior citizen card
• Proof of the latest appointment of the current Directors, in case of a change in directors
• Proof of the resignation of the Directors (in cases where the Board Changes)
• PAN Card of the company or the PAN Card Application Acknowledgement
• A copy of the electricity bill or a telephone bill

The following documents are also needed to open a Bank Account so as to be shown as a proof for the incorporation of a company-

• Memorandum of Association (MOA) and Articles of Association (AOA)
• According to the latest bank structure, the most recent list of directors is required for opening of a bank account
• Identity proof of all the directors, as well as authorized signatories, is also required
• Permanent account number card of all the directors
• According to the bank structure shareholding pattern of the company is also needed.

The board resolution for opening a bank account can be used for opening the bank account of a Private Limited Company or a One Person Company, as the case may be. After the generation of the board resolution for the purpose of opening bank account can be printed on the business letterhead and provided to the Bank in which the account is to be opened.