When your business is expanding globally, embracing the best practices becomes crucial. One such best practice involves opting for a Current Account instead of a savings account since it comes with limitations when meeting the requirements of a global enterprise. Its primary design targets individual consumers. However, by choosing a Current Account, your business can unlock opportunities and enhanced financial capabilities to support its global growth.
Let’s understand how a Current Account can add more value to your budding international business.
Current Account simplified
Your savings account serves your individual banking needs, allowing you to conduct personal transactions and manage your personal finance portfolio. In contrast, the Current Account caters specifically to your business requirements and offers features and functionalities to facilitate the seamless growth of your international business.
Current Accounts can serve enterprises of varying sizes and scales. You could be a freelancer, consultant, or professional running your practice. Your business could also be a corporation or fall into a micro, small and medium-sized enterprise (MSME) bracket. A Current Account is relevant for all these use cases.
Key advantages for international businesses
A snapshot of value-added services:
No limitations on transaction amounts
The ticket size of international transactions may be much larger than local businesses. Your Current Account ensures no cap in terms of transaction amounts. You can also facilitate any number of transactions in a month.
Ability to transact in global currencies
Your International clients or customers may want to make payments or receive payments in their native currencies. Your Current Account simplifies this process. It enables you to receive and make payments in multiple currencies. This is a seamless, highly secure experience at reduced costs. You can also maintain your balance across 20 currencies.
Also Read: 8 Key Factors to Look at Before Opening a Current Account
Access forex card services
Your Current Account unlocks access to Forex Card services. This facility allows you to transact seamlessly when travelling overseas. Benefits include locked-in currency exchange rates. You can facilitate online and offline transactions in over 16 global currencies. Your Forex Card also comes with card loss insurance.
Superior payment solutions
As a global business, you have international customers and vendors. You may also work with freelancers and collaborators across the globe. Global payments will be part of your operations. Your Current Account comes equipped with several payment solutions. You can activate single, bulk, and card-related global payments securely.
Current Account eligibility
The following types of businesses are eligible to open a Current Account:
- Sole proprietorship
- Partnerships
- Limited Liability Partnership
- Public companies
- Private companies
It is essential to fully understand the Current Account terms and conditions when opening a new account. Banks may offer several different account products based on your business needs. The Current Account charges may vary accordingly.
Current Account documentation
The Current Account documentation varies based on the nature of your business entity, as follows:
Sole proprietorship
- Entity & address proof of the firm
- Proprietor's PAN card
- Address proof of the Proprietor
- Recent passport-size photograph
Partnership
- Entity and Address Proof of the firm
- Firm's PAN card
- Registration certificate of the firm with the registrar of firms
- Partnership letter signed by all partners
- Address Proof and ID proof of the Partners
- Recent passport-size photographs of partners
- Stamp/Seal of the firm
- Beneficial Owner & Foreign Account Tax Compliance Act (FATCA) declaration
Limited Liability Partnership
- Limited Liability Partnership Agreement
- Certificate of incorporation
- PAN card of the firm/ Form 60
- List of all existing designated partners & designated partner identification number (DPIN) issued by the Central Government on letterhead
- Address proof of the entity
- Board Resolution
- Address Proof and ID proof of the Partners
- Recent passport-size photographs of partners
- Beneficial Owner & FATCA declaration
Private/ public companies
- PAN card of the company
- MOA, AOA & Certificate of Incorporation
- Company Certificate of Commencement or INC 21 along with ROC receipt (Public Ltd Co)
- Address proof of the company
- Board Resolution
- Address Proof and ID proof of the signatories
- Recent passport-size photographs of signatories
- List of directors and their DIN
- Beneficial Owner & FATCA declaration
The takeaway
If your business aims to build a global footprint, consider opening a Current Account with Axis Bank. Key benefits include virtual onboarding and end-to-end services, access to global currency transactions and Forex card services. Seamless integration with accounting software and portfolio management are additional perks. You can also automate global payments and expect a highly secure experience.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
