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Getting a current account for your business is essentially the first step in managing your cash flow.
It’s the only place where you can get a 360-degree view of your business transactions. Since setting up a current account is such a crucial task for any business, you’d think the process would be seamless.
Sadly, it’s not!
Talk to any entrepreneur or small business owner & they’ll tell you that it’s a long tedious process.
Now, one of the major pain points in the whole process of getting a current account is arranging all the KYC and business documents. If you miss even submitting one document you risk the entire process being delayed by weeks.
So we decided to sort it out for you and with this build a comprehensive guide on all the documents required for opening a current account.
Checklist: Documents required for opening a current account
These are the basic KYC documents that you’d require no matter your type of business.
- Address proof –Aadhar card, voter ID card, rent agreement, electricity bill, telephone bill, water bill, passport, driving license (Any 1)
- Identity proof –PAN card, passport, voter ID card, driving license, aadhaar card (Any 1
- Business registration proof or incorporation certificate
- PAN of the entity
- Latest passport size photo
- Account opening cheque from an existing bank account
Please note that you need to submit KYC documents for all the authorised signatories for your business.
Now, if you’re an individual, you’d require the above-mentioned documents only.
Other documents vary from business to business, depending on the type. So we set out to make a holy grail of documents required while opening a current account for all types of businesses.
Public/Private Limited Company
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Updated list of directors of the Public/Private limited company
- Board Resolution (BR)
- Shareholding pattern/ list & ID proofs of all the beneficial owners owning more than 25% in the firm
Sole Proprietorship Firm
- Two documents in the name of the sole proprietorship firm confirming the name and address — issued by a Government authority/ department, as registration/ license document
- NREGA issued Job Card
- Latest passport-size colour photograph of the sole proprietor
- Photograph, identity, and address proof of the POA ( Power of Attorney) holder
Limited Liability Partnership (LLP)
- Registration Certificate issued by Registrar of Limited Liability Partnership
- Photograph, identity, and address proof of the POA ( Power of Attorney) holder
- LLP letter
- LLP deed agreement
- Designated partners updated list
Partnership firm
- Shareholding pattern/ list & ID proofs of all the beneficial owners owning more than 15% in the firm
- Partnership deed
- Partnership letter
- Trade license agreement
Now, while we have sorted the documents that you’d need for opening a current account, let’s have a look at some of the other crucial aspects of choosing a current account.
How to choose a current account for your business
Now, a current account is a prerequisite for any business and if you’re just starting out you need to be aware of what you’re signing up for.
Most traditional banks have a current account tailored to the needs of big enterprises. If you are a startup founder or a small business owner, you need to be on the lookout for a current account that caters to your specific needs.
Few key points you should consider while choosing a current account for your business are –
- Minimum average monthly balance requirement
- Overdraft limit
- Dedicated customer support
- No. of free demand drafts, NEFT and RTGS transactions & pay orders
- Well built digital infrastructure that limits the need of visiting the physical bank branch
- Integrated services like accounting, bookkeeping, expense management
Future forward RazorpayX Current Account
We here at Razorpay have built an efficient financial CRM that allows you to manage your entire business banking with your current account.
With RazorpayX, you can do everything that you can do with a traditional current account, and –
- Make 24*7 instant payouts
- Get insightful financial reports
- Integrate powerful APIs to automate payouts
- Set up an efficient approval workflow
- Get access to smart apps & integrations like Vendor Payments, Payout Links, and Payroll
And a lot more!
But the best part is that you can apply for a current account with RazorpayX in minutes.
So, if you’re looking for a current account that grows with your business needs, you’ve landed just in the right place.
