A current account offers several benefits to businesses, including the ease of receiving and paying money. It helps enterprises of all shapes and sizes to improve their financial management. Opening a current account with zero balance is simple and fast, allowing you to make quicker transactions. All you have to do is submit a request with your company details online. Here’s a step-by-step guide to opening a current account.
Does your business need a separate account?
Current accounts offer services focused on the needs of business transactions. Some of the advantages of a current account are:
- A dedicated business account helps you keep personal, and business finances separate.
- The account statements make it easier for you to quickly get an update on your business expenses and revenues, which clients have paid and what invoices are pending.
- Sharing your current account details with clients gives your business a more professional touch and adds to its credibility.
- It gives it a feel of being a growth-oriented entity rather than just a side hustle.
- A well-maintained and active current account improves the creditworthiness of your business, helping it secure loans and funding when you plan for expansion.
Choose the bank and account type
Choose a bank that meets your business banking needs. Consider a timespan of at least 5 years to avoid too many account changes. Before applying, check that your chosen bank offers a current account loaded with features, including:
- Net and mobile banking
- Overdraft facility (you can use this to get easy access to money when your business needs it the most)
- High limits for cash deposits and withdrawals
- Overseas transactions
Learn about the bank’s customer support and promptness in solving issues. Also, verify that the bank offers competitive pricing for all the facilities you need, such as current account opening charges, overdraft fees, and international transactions.
Check your eligibility for a zero-balance current account
People who fall under the following categories are eligible for a zero-balance current account in India:
- Individual business owners
- Home-business operators
- Partnership firms
- Welfare groups, societies and trusts
- Public or private limited companies
- Undivided Hindu families
Documents needed to apply for a current account
Being eligible does not entitle you to open a current account. Banks require certain documentary proofs to assess your identity, legitimacy, and financial capacity. Keep the following documents handy to apply online and instantly open a current account or visit your nearest branch:
Identity proofs of the applicant (applicants in case of a joint account): PAN card, aadhaar card, driving license, passport, or voter ID
Address proof: Utility bill, rental agreement, bank statement, ration card, passport, or similar document
Passport-size photographs of applicants: Make sure the front profile of your face is clearly visible and the background is white
Table of Contents
Documentation for the type of category:
- HUF letter signed by all adult members
- Firm partnership deed
- Certificate of incorporation for a Limited firm
- Letter of proprietorship or sole ownership
- Certificates by tax authorities
- Trust/society registration certificate
You can check the application procedure and keep all documents ready before opening a current account.
Opening a current account
Step 1
Visit the bank’s website or log in to the mobile app. Navigate to the option for opening the account online. You can also visit a branch near you to complete the process offline.
Step 2
Fill out the form to open a current account. Check the zero-balance option for a current account with no minimum balance requirement. You can also specify other conveniences, such as:
- Credit/debit card
- Overdraft facilities
- Dedicated account/relationship manager
- Activation of mobile and online banking or other conveniences
Read the account terms and conditions to understand any fees or charges that may be levied.
Step 3
Upload digital copies of your documents for the online process to open a current bank account instantly. For the offline process, submit copies of the documents along with the application form.
Step 4
Review and submit the application form. You may have to deposit some current account opening charges with the application, as per the bank’s policies.
The bank’s team will guide you further and keep you informed on the progress of your application via SMS or phone call. They may ask you to deposit a cheque or conduct a transaction to initiate the account. In a current account with minimum available balance (MAB) restrictions, the bank asks you to add the said amount with the application. You can deposit a cheque with the required amount or transfer it online via the chosen online mode from an existing account.
Managing a business can be challenging. A current account streamlines financial management and helps businesses conduct their daily transactions with greater ease and plan for expansion.