Once the PLC (Private Limited Company) is formed, it is best to get the basic requirements in place. Amongst these, opening a bank account within 60 days is essential from the date of commencement of business. For companies, it is necessary to carry out certain transactions to keep the operations running without any hassle.

What is a current account?

The current account is also known as a transaction account and demand deposit account. It is immediately available for deposits and withdrawal from any branch of the bank. The current account can carry a higher transaction limit. Also, liquid funds are always available for the owner. However, the owner doesn’t need to bear any interest in it to compensate for the same.

What are the benefits of a current account?

  • Easy withdrawal facility to deal with cash transactions.
  • Deposit cash or cheque at any branch of the bank makes it convenient to collect payments.
  • Over drafting money is available for account holders in a current account.
  • Separate cheque balance to be used every month.
  • Get a chequebook every month at no charge to make payments to vendors without hassle.
  • SMS updates of every transaction and bank balance.

What are the required documents to open a bank account for PLC?

  • Certificate of Incorporation
  • Memorandum of Association (MOA)
  • Article of Association (AOA)
  • Board Resolution to identify the authorized board member
  • List of directors
  • Address proof of registered office address
  • Director’s identity proof and authorized signatories
    • Pan Card
    • Adhar Card
    • Voter Identity Card
    • Driving License
    • Passport
    • Senior Citizen card issued by central or state government
  • Proof of appointment of directors (in case of any changes in the Board of Directors)
  • Proof of resignation of directors (in case of any changes in the Board of Directors)
  • Shareholding pattern of the company
  • PAN Card of the company or PAN Card Application Acknowledgement

How to open a bank account?

Opening a bank account is as simple as it gets. You can open it in 2 ways. You can visit the nearest bank or you can open it online. Due to digitalization, banks have a facility to open a bank account on behalf of your company. However, the documents remain the same for both procedures.

Conclusion

Ensure that the above-required documents are in place to open a bank account at the earliest. It is amongst the most basic requirements for company operations. Once you open a bank account, you need to file a Form INC-20A.