Essentials for Starting a Digital Bank Account

In India, banks offer two main types of accounts: savings accounts and current accounts. Savings accounts are great for managing personal finances, while current accounts are tailored for business activities.

A current account functions similarly to a typical bank account but comes with some unique perks. Businesses, trusts, sole proprietors, and various associations frequently use them. Current accounts allow unlimited withdrawals and deposits, provide free monthly cheque usage, enable easy fund transfers between branches, and include an overdraft facility. Because of these benefits, they are essential for professionals, entrepreneurs, and organizations.

Opening a current account is usually quick and simple, whether online or in-branch. It’s important to choose an account that aligns with your business needs. Before activating your account, the bank will need specific documents, including:

Proof of Identity:
– Popular options include PAN cards for vendors, business owners, professionals, and companies, along with Voter ID, driving license, or passport. Utility bills can also verify your address.

Proof of Company Existence:
– Documents include a foreign trade permit from the Director General of Foreign Trade, municipal licenses, and registrations as per the Bombay Shops and Establishments Act 1948. You may also need a professional tax registration certificate, GST registration certificate, state government business registration certificate, registrations from SEBI or the Reserve Bank of India, or licenses issued by the Food Safety and Standards Authority of India (FSSAI).

Verification of Business Address:
– Required documents may include Income Tax Bills, Property or Water Tax Allotment Letters, Tax Deduction and Collection Account Number (TAN), property registration documents, and proof of property ownership or rental registration.

For Non-Resident Indians (NRIs), additional requirements might include:
– A declaration of non-involvement in activities like print media, real estate, or agriculture.
– Proof of funds coming from a specific non-resident account.

For a Limited Liability Partnership (LLP), you’ll need to provide:
– A Limited Liability Partnership certificate.
– KYC documents for all partners.
– The limited partnership liability contract.
– Proof of partner roles as signatories.
– Partner IDs from the Ministry of Corporate Affairs.

For a Public Limited Company, the required documents are:
– A startup certificate.
– Memorandum of Association.
– Incorporation certificate.
– A list of company directors.
– A board resolution identifying signatories.

This guide outlines the paperwork you’ll need to set up your online current account.