How to open a Current Account in a bank: 3 quick steps

If you run a business, it is imperative that you set up a Current Account. A Current Account is one of the most beneficial tools to help manage your business finances. This tool is used by small and medium sized businesses, trusts, corporations as well as societies to manage financial operations smoothly and securely.

How to open a Current Account in a bank

If you’re confused about how to create a Current Account, you’re in the right place. In the digital era, the procedure to open a Current Account is fairly simple.

Check your eligibility

Before submitting your Current Account application, check if you are eligible. The following business entities are eligible for Current Account enrollment:

Sole proprietorships
Partnerships
Limited Liability Partnerships
Public companies
Private companies

Select the right Current Account

Once you have confirmed your eligibility, the next step is to select the right Current Account. Banks offer multiple products based on the business sector, type of business entity, transaction volume and unique business needs. The monthly average balance and cash deposit limits will vary based on these factors.

For instance, if you are opening a corporate Current Account, you may need a larger cash deposit limit as compared to opening a Current Account for retirees who have ventured into consulting.

Choose the mode of application

Most banks do not charge a Current Account application fee, be it one you apply online or by physically visiting a bank branch. If you are planning on opening a second Current Account, check first if your bank allows it. Alternatively, you can open it at a different bank.

Here are the steps to open a Current Account:

Online

Today, you can open a digital Current Account within 24 hours. Fill out the Current Account application form online, and submit it along with the relevant documents.
Your KYC (Know Your Customer) verification happens via a video call.
If your Current Account registration fulfils all the requirements, your account can be allocated within 20 minutes of the call.
Fund your account and start using it.

Offline

Fill out the Current Account application form correctly and submit it along with your documents. The bank will contact you for the next steps. Setting up a Current Account offline can take one to two business days.

Documents required for a Current Account

The documentation for your Current Account depends on the type of business entity. Here’s a snapshot of the documentation needed w.r.t. the type of business you won:

Sole proprietorships

Entity and address proof of the firm
Proprietor's PAN card
Proprietor’s address proof
Passport-size photographs

Partnerships

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
Passport-size photographs of partners
Stamp / seal of the firm
Beneficial owner and Foreign Account Tax Compliance Act (FATCA) declaration

Limited Liability Partnerships

Limited Liability Partnership Agreement
Certificate of incorporation
PAN card of the firm / Form 60
List of all existing designated partners and 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
Passport-size photographs of partners
Beneficial owner and FATCA declaration

Private / public companies

PAN card of the company
MOA, AOA and 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
Passport-size photographs of signatories
List of directors and their DIN
Beneficial owner and FATCA declaration

Also Read: Complete guide to opening a Current Account

Conclusion

Now that you are aware of the procedure to open a Current Account, ensure that you choose the right product for your needs. Axis Banks offers several Current Account products designed to serve the needs of various business sizes and entities. You can open an account online within just 24 hours.

The minimum balance required is ₹15,000 in metros, and ₹7,500 in rural / semi-rural areas. Reap the benefits of virtual onboarding, overdraft facilities, global transactions, Forex services, unlimited NEFT/ RETG online transactions and cash withdrawals, a business Debit Card, and secure payment solutions.

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.