How to Open a Business Bank Account in India

This article helps you to know about the basic steps to be taken to open a business bank account in the name of the business and the necessary documents. Also, let us know which bank is best to open business bank account.

For any entrepreneur, one of the basic steps to be taken is to open a business bank account in the name of the business. This makes way for the business owner to handle commercial transactions for the sake of the business and also helps to lend credibility to the business in the marketplace. In this article, we attempt to detail how a business owner can open a premium business bank account and the necessary documentation for the purpose.

There are certain stipulations set up by the Reserve Bank of India to open a bank account (KYC Norms) to help keep away criminals from misusing the bank accounts to launder money or fund terrorist activities. In addition to these, each bank requires unique documentation and customer information as stipulated by their internal regulations to open a business bank account. The details to be submitted differ on the basis of the type of business structure.

Bank Account for a Proprietorship Business

For opening a bank account in the name of the business, the business address and the activity of the business must be provided. Moreover, any two of the following documents should also be made available to the bank.

If a bank account has to be opened in the name of a proprietorship business, both the address of the business and the activity of the business must be specified. Some of the additional documents to be submitted include:

  • Registration certificate
  • Certificate /License that is issued by the Municipality under the Shop & Establishment Act
  • Sales Tax Returns
  • Income Tax returns
  • CST/VAT Certificate
  • Certificate issued by the Tax authorities (Sales/Service/Professional Tax)
  • License issued by Authorities such as (ICAI, ICSI, IMC, Food & Drug Control Authority, etc.)
  • Registration issued by Central/State Government
  • Importer Exporter Code (IEC) issued by the office of the DGFT required as an identity document for opening a bank account
  • Income Tax returns of the proprietor of the business
  • Utility Bills

Bank Account for a Partnership Firm

For a partnership firm, the legal name of the partners, addresses, the name of the business, telephone numbers of the partnership firm as well as that of the partners must be submitted to the bank. In addition to these, the following documents have also to be submitted.

  • Registration Certificate
  • Partnership deed
  • Power of Attorney granted to a partner
  • Any official document that identifies partners as Power of Attorney
  • Telephone bill in the name of the partners

Bank Account for a Company

In the instance of opening a business bank account for a company, the basic details to be provided include the name of the company, place of business, mailing address, and the telephone number of the company must be provided. In addition to all of these, the following documents should also be submitted:

  • Certificate of Incorporation of the business and the Memorandum & Articles of Association
  • Board of Directors' Resolution to open the bank account and identification documents for those who are authorized to operate the account
  • Power of Attorney to the employees who transact on behalf of the company
  • Pan allotment letter copy
  • Telephone bill copy

South Indian Bank


South Indian Bank, one of the premier banking institutions in India, offers different types of business bank accounts: Current accounts, Cash credits Overdrafts, and Mercantile Credits. These accounts are designed so as to provide everyday convenience in conducting banking transactions for the purpose of the business. They also offer working capital credit facility.

Some of the facilities for business bank accounts are the issuance of cheque books, unlimited transactions, availability of statements of accounts, deposit/withdrawal in any branch, balance inquiry, free collection of cheques and demand drafts, the collection of outstation cheques/demand drafts, etc.

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