## What is a Current Account?
In India, banks offer two main types of accounts: savings accounts for personal finances and current accounts primarily designed for business needs.
Current accounts are typically used by businesses, trusts, sole traders, and other organizations. They function similarly to regular bank accounts but provide several benefits: unlimited withdrawals and deposits, free monthly cheque usage, easy fund transfers across branches, and an overdraft facility. These features make current accounts essential for professionals, business owners, and various organizations.
Setting up a current account is generally quick and straightforward, whether you’re doing it online or offline. Choosing the right current account depends on understanding your business needs.
To open a current account, you’ll need to submit specific documents:
### Proof of Identity:
– PAN card (common for vendors, business owners, professionals, and companies)
– Voter ID
– Driving license
– Passport
– Phone and utility bills (for address proof)
### Proof of Company Existence:
– Foreign trade permit from the Director General of Foreign Trade
– Licenses and registrations from municipal corporations
– Professional tax registration certificate
– GST registration certificate
– State government business registration certificate
– Registration certificate from SEBI or the Reserve Bank of India
– Food Safety and Standards Authority of India (FSSAI) licenses
### Business Address Verification:
– Income tax bills
– Property or water tax allotment letter
– Tax Deduction and Collection Account Number (TAN)
– Property registration documents
– Financial declaration documents
– Proof of property ownership or rental registration documents
For Non-Resident Indians (NRIs), additional documents may include:
– Declaration of non-involvement in print media, real estate, or agriculture
– Proof of funds from a non-resident account
For a Limited Liability Partnership (LLP), required documents include:
– LLP certificate
– KYC documents for all partners
– Limited partnership liability contract
– Proof of chosen partners as signatories
– List of partners with IDs from the Ministry of Corporate Affairs
For a Public Limited Company (PLC), you’ll need:
– Startup certificate
– Memorandum of association
– Incorporation certificate
– List of company directors
– Board resolution indicating signatories
This guide should help you gather the necessary documents to open your current account online.