As we know, the current account is specially used by associations, trusts, businesses, societies, etc. It gives a wide range of advantages to current account holders and makes it a convenient bank account for businesses.
Businesses prefer to open a current online account over a savings accounts because of unlimited transaction facilities, liquidity features, etc.
Read the given facts below to know the importance of opening a current account for PLC.
Importance of current account for private limited companies
When the PLC (Private limited companies ) are incorporated, they get a PAN number. After this, they need to open a bank account. Even the current account opening is not important, but it is good to open a current account with a company name, to indicate a separate legal entity.
This way, the company transactions proceed in a company account instead of a personal one. The company’s current account helps you to keep the business finances separate from personal finances.
The process to open a current account by PLC
How to open a current account by PLC? The process to open a current account by PLC is very simple and as follows:
- Visit the website or branch of the bank in which you want to open the company’s current account. Many banks have set up provisions to allow you to open a current account online.
- Choose the option of the current business account on the website, then choose the type of current account, tap on apply now button, and then fill in the application form.
- After filling out the application form, you must submit it on the bank website, or in case offline, submit it to a bank branch.
- Once you submit the application form, a customer care executive will contact you to complete the process.
- The company should submit the necessary documents to open a current account.
- Once the KYC verification completes, the bank will open your current account with the company name.
Documentation needs to open the current account by PLC
Here are the documents you need to submit if you want to open a current account for private limited companies:-
- Incorporation certification of PLC
- Memorandum of Association and Articles of association of PLC
- Resolution by the director’s board to open a current account and book the appointment to open a current account
- Attorney grant to employees, officers and managers of the company to make business transactions on behalf of the company
- Identification number of directors in the company
- PLC PAN card
- Directors update the list according to the bank format
- PLC address proof that is registered
- All director’s ID proof
- Appointment proof
- Information of owner, if any
- PLC shareholding pattern according to the format of the bank
The benefits of the current account include minimum balance requirements, overdraft facilities, ease of transactions, unlimited deposits, and withdrawals, etc.
Hope you understand why the current account is important for PLC. Feel free to ask our queries with us if you have any doubts.