Proprietorship Current Account: If you run a business or firm, you need to handle business transactions. A current account proves very useful for this purpose. Customers can make direct payments into this account, and supplier companies can also remit funds to it. It also facilitates easy business transactions. Nowadays, many banks offer online application facilities and Video KYC options for opening current accounts. However, the required documents and bank terms and conditions may vary.
Documents Required to Open a Current Account
To open a current account for a proprietorship firm, banks specifically require the proprietor’s KYC documents along with business-related documents. Primarily, banks require identity and address proofs of the account holder (the proprietor), such as a PAN card and Aadhaar card.
Business Certificates
Banks may request proof of business establishment. Depending on the bank’s policy, they may ask for documents such as the GST registration certificate, Udyam registration certificate, establishment license, Gumasta license, Import-Export Code (IEC), utility bills in the business’s name, rent agreement, etc.
How to Open a Current Account from Home?
Many banks now offer the option to apply digitally. The process is quite simple. First, choose a bank that suits your needs. Before opening the account, check details regarding the minimum balance, bank charges, digital services, etc. To apply, visit the bank’s official website and navigate to the ‘Current Account’ section. Select the option for a proprietorship or sole proprietorship account. Next, enter details such as the proprietor’s name, mobile number, address, and business name.
Upload the required documents—PAN, Aadhaar, and business-related papers (banks may request additional documents in some cases). Finally, complete the identity verification process via Video KYC or other methods offered by the bank. Once the KYC process is complete, you must maintain an initial deposit or a stipulated minimum balance, in accordance with the bank’s terms. The current account becomes active after the process is finalised.
Open an account by visiting a branch
If you can’t complete the process online, you can apply for a current account by visiting a nearby bank branch. Bank officials there will guide you on filling out the form and submitting the necessary documents.
Points to consider before opening an account
When opening a current account, look beyond the bank’s name. Familiarise yourself with details regarding the minimum average balance, cash deposit charges, transaction fees, and other applicable charges. Also ask the bank which documents it requires as proof of business.