Opening a current account is an essential step for small businesses in India. It provides a convenient way to manage day-to-day business transactions, such as paying vendors, accepting payments from customers, and keeping track of expenses. However, before you can open a current account for your small business, there are some documents that you’ll need to provide. In this blog post, we’ll go over the documents required to open a current account for small businesses in India.
Required Documents to Open Current Accounts
1. PAN Card
The first document you’ll need to open a current account for your small business is a PAN card. PAN stands for Permanent Account Number, and it’s a unique 10-digit alphanumeric code that’s assigned to each taxpayer in India. You’ll need to provide the PAN card of the proprietor or the directors of the company. If you’re a sole proprietor, you’ll need to provide your individual PAN card. If you’re a partnership firm or a company, you’ll need to provide the PAN card of the partners or directors.
2. Address Proof
You’ll also need to provide valid address proof for your small business. This can be in the form of a utility bill, such as an electricity bill, water bill, or telephone bill. You can also provide a bank statement or a passport as address proof. If you’re renting a space for your business, you can provide a rent agreement as proof of address.
3. Identity Proof
Along with the address proof, you’ll also need to provide valid identity proof for your small business. This can be in the form of a passport, driving license, voter ID card, or Aadhaar card. You’ll need to provide the identity proof of the proprietor or the directors of the company. If you’re a sole proprietor, you’ll need to provide your individual identity proof. If you’re a partnership firm or a company, you’ll need to provide the identity proof of the partners or directors.
4. Business Registration Proof
If your small business is registered with the Registrar of Companies (ROC), you’ll need to provide the business registration proof. This can be in the form of a certificate of incorporation, memorandum of association, or partnership deed. If your small business is not registered with the ROC, you can provide a trade license or a GST registration certificate as proof of business registration.
5. Bank Statements
You’ll also need to provide bank statements for the last 6 months for your small business. This will help the bank assess your business’s financial health and determine whether you’re eligible for a current account. You’ll need to provide the bank statements of the current bank account of your small business. If you don’t have a bank account yet, you can provide personal bank statements.
6. Business Plan
While not a mandatory document, providing a business plan can help you increase your chances of getting approved for a current account. Your business plan should include details about your business, such as the products or services you offer, your target market, your marketing strategy, and your financial projections. This will help the bank assess the viability of your business and determine whether you’re eligible for a current account.
7. GST Registration Certificate
If your small business is registered under the Goods and Services Tax (GST) regime, you’ll need to provide your GST registration certificate. This is mandatory for businesses with an annual turnover of Rs. 40 lakhs or more. The GST registration certificate will help the bank verify your business’s tax compliance and determine whether you’re eligible for a current account.
8. Proof of Business Ownership
You’ll also need to provide proof of business ownership for your small business. This can be in the form of a partnership deed, memorandum of association, or certificate of incorporation. You’ll need to provide this document to show that you’re authorized to open a current account on.
