Applying for Corporate Credit Cards – A Complete Guide

For a startup, liquidity is a strategic advantage that means there is cash flow to take care of operational and expansion needs. In recent times, corporate cards have transitioned from simple payment tools into sophisticated financial solutions that provide visibility, control, and vital working capital.

Corporate credit cards are the perfect solution for startups and small businesses as they offer instant credit and relevant benefits. However, for many founders, the thought of applying for a corporate card often conjures images of endless paperwork and rigid bank mandates. This comprehensive guide demystifies the process, focusing on how RazorpayX is redefining credit access for the modern business while providing you with the exact blueprint to get approved.

Why Do You Need a Corporate Credit Card?

Many businesses confuse business credit cards with corporate cards. While business cards often rely on a founder’s personal credit, a corporate card is issued in the name of the company. And your startups need one because of the following reasons.

• Cash Flow Management – Gain up to 45–50 days of interest-free credit. This is essential for funding high-growth activities like digital ad campaigns or annual SaaS subscriptions.
• No Personal Liability – Unlike traditional business cards, modern corporate cards often don’t require a personal guarantee, protecting the founder’s personal assets.
• Automated Expense Management – Corporate cards allow you to set individual limits and sync transactions directly with accounting software.

Corporate cards also offer discounts on SaaS tools and subscriptions that allow your business to optimize its budget and savings. It is an incredible tool for startups as it offers flexibility and resources needed to scale and grow.

Apply for RazorpayX Corporate Cards Here!

Challenges in Getting a Company Credit Card & How to Overcome Them

Getting a corporate card in India has traditionally been an uphill battle. If you’ve tried the legacy banking route, you likely encountered these common hurdles –

• Questions about History – Traditional banks usually demand 3 years of audited profits. This tends to disqualify most companies as profits and steady revenue are harder to show in initial years.
• Complex Documentation – The sheer volume of physical paperwork, from notarized board resolutions to physical site visits, can stall an application for months.
• Personal Liability – Many banks insist on a “Personal Guarantee” from the founders, meaning if the business fails, the bank can come after your personal home or savings.

How to Overcome These Challenges?

The solution lies in choosing a tech-first provider that judges based on performance, not results. By evaluating your real-time cash flows and digital transaction history rather than just historical balance sheets, platforms like RazorpayX remove most hurdles, making credit accessible to “pre-profit” but high-growth companies.

What are the Requirements to Apply for Corporate Credit Cards?

Before you start the application process for a corporate credit card, you need to ensure your business foundation is solid. Here are the general requirements for all business types that banks and financial institutions consider before issuing a corporate card.

1. Physical Office Setup & Visible Name Board – Regulatory compliance in India requires that your physical office match your official documents (GSTIN, COI, etc.). During the verification process, a bank representative may visit your office. A visible name board is mandatory as it confirms to the regulator that the business is legitimate and operational.
2. The Borrowing Clause (For Companies & LLPs) – This is the most common reason for application delays. For Pvt Ltd, Public Ltd, or LLPs, your Memorandum of Association (MOA) or LLP Agreement must include a “Borrowing Clause.” This clause legally empowers the company to take on debt (which a credit card is).

Note – If your MOA doesn’t have this, don’t panic. RazorpayX can connect you with a trusted partner agency that can help you amend your MOA to include this clause legally.

3. KYC Documents – “Know Your Customer” is a non-negotiable step. You need identity and address proofs for all directors, partners, or proprietors. These must be properly signed and current.

Corporate Card Eligibility – Who Can Apply?

Corporate credit card eligibility goes beyond revenue. It also considers the age and type of your business. Here is the eligibility criteria for corporate credit cards for different business/company types.

• For Pvt Ltd and LLPs – You generally need a minimum business age of 12 months.
• For Proprietorships – These are tied more closely to an individual. Hence, banks usually look for a minimum business age of 24 months.
• Operational Health – You should have a consistent flow of transactions in your primary bank account for at least the last 6 months.
• A Clean Record – Ensure that your company (and its directors) has no history of defaults on existing loans or significant legal disputes.

How to Apply for a RazorpayX Corporate Card?

The application process for a RazorpayX Corporate Card is pretty simple and tied to the processes of their partners, RBL Bank and YES Bank. 

1. Check Eligibility via Dashboard – Log in to your RazorpayX account. If you already process payments through Razorpay, our internal “Risk & Credit” engine has likely already pre-calculated an offer for you. You can see your potential limit right there on the dashboard.
2. Digital Onboarding – Once you click “Apply,” you will be prompted to upload your KYC and business documents. Since everything is digital, you can upload PDFs directly.
3. Verification – RazorpayX performs an automated verification. We look at your GST filings and bank statements to ensure your revenue matches your claims.
4. Instant Virtual Issuance – Once the “KYC” and “Business Verification” are successful, your virtual card is generated almost immediately. You can start paying for your Google Ads or Zoom subscriptions within minutes, while the physical card is dispatched to your registered office.

Note: Final approval for card issuance is subject to the internal credit policies and regulatory checks of RazorpayX’s banking partners, RBL Bank and YES Bank.

Apply for Corporate Credit Cards Here!

The Pre-Sanction Document Checklist

Having your documents ready will speed up your approval by 5x. Here is the breakdown of the documents required by most institutions, including RazorpayX, based on entity type.

Entity Type 1 – Private Limited / Public Limited Companies

• Business Documents – Company PAN Card, Certificate of Incorporation (COI), MOA & AOA.
• Address Proof – Company’s GST Registration Certificate, a Utility bill (Electricity/Phone) not older than 60 days, or a registered and unexpired rent agreement.
• Financials – Audited Financials for the last 3 years + Provisional financials for the current year (if applicable).
• Bank Statements – Last 6 months’ statements from your main account (where you receive your Razorpay or other settlements).
• For Directors – PAN Card, Aadhaar Card/Passport, and a recent photograph.

Entity Type 2 – Partnership Firms

• Business Documents – Partnership PAN Card and the Partnership Deed (with the Borrowing Clause).
• Address Proof – GST Registration, Trade License, or Municipal License.
• Financials – Last 6 months’ Bank Statements (digital copies preferred).
• For Partners – Partners’ PAN, Aadhaar, and a list of all partners with their Name, DOB, and DIN/Form 60 details.

Entity Type 3 – Limited Liability Partnerships (LLPs)

• Business Documents – LLP PAN Card, LLP Agreement, and ROC Registration.
• Address Proof – Utility bill (under 60 days) or a registered rent agreement.
• Financials – Last 6 months’ Bank Statements.
• Special Requirement – A Board Resolution authorizing the company to apply for the card (if the Borrowing Clause isn’t already in the agreement).

Entity Type 4 – Proprietorships

• Business Documents – PAN Card of the Proprietor (this acts as the business PAN).
• Existence Proof – Any 2 proofs from this list: GST Certificate, Udyam Registration, Shop & Establishment Act License, or Trade License.
• Address Proof – If the business doesn’t operate from the address on the proofs above, a Registered Rental Agreement is required.
• Financials – Last 6 months’ Bank Statements.

Tips to Ensure a Successful Corporate Card Application

To avoid delays or rejections, follow these industry “golden rules” –

• GST & Bank Match – Your GSTR-3B and GSTR-1 filings for the last 12 months will be reviewed. The credits in your bank statement must match your reported GST turnover. Discrepancies often lead to immediate rejection.
• Audit Your MOA/LLP Agreement – Ensure the “Borrowing Clause” is explicit. If it isn’t, prepare a Board Resolution authorizing the company to apply for the card.
• Keep Utility Bills Current – Address proofs like electricity or phone bills must be less than 60 days old at the time of submission.
• Verify International Stakeholders – If any director/partner is a foreign national or owns more than 10% of the Indian entity, you will need specific identity verification documents for beneficial ownership compliance.

Conclusion

Applying for a corporate card shouldn’t feel overwhelming. By choosing a partner like RazorpayX, you move away from the “one-size-fits-all” approach of traditional banking and into a world where credit is tailored to your business’s real-time performance. We offer secure and unsecured cards for businesses based on their revenue and performance, opening up credit lines for all!

Explore about RazorpayX Corporate Cards Now!