Updated on July 08, 2024 10:41:22 AM
Registering a private limited company requires various compliances to be followed after the company is registered. One such mandatory compliance is opening a current bank account for a private limited company within two months of the company incorporation.
A company cannot do business transactions through a savings account due to various restrictions, therefore it is mandatory for a registered company to open a current bank account after its incorporation.
A current bank account for a private limited company provides various benefits and it is highly suitable for small businesses, Private Limited Companies, Trusts or NGOs etc, to do unlimited transactions for their financial needs of the business.
When a private limited company is incorporated, it receives various official documents in the name of the company, such as PAN, etc.
Though it is not compulsory to open a bank account for a private limited company, it is advised to do so as to provide a separate legal structure to the company by getting the official documents in the name of the company.
By opening a Current bank account in the name of a private limited company, it enables the shareholders to make all the transactions in the name of the company and not otherwise. Therefore it is advised to open a Current Bank account in the name of the company.
To keep the personal finances of a director different from the company’s transactions, it is important to open a current bank account in the name of the company. A private limited company can have multiple bank accounts.
Since a pvt ltd company is a separate identity, a current account will help to get the information about all the transactions of the business. The business transaction can include payment of salaries, dividends, taxes, or any ancillary payments made to creditors etc.
The process of opening a current bank account for pvt ltd company is :
Given below is the list of documents required for opening a current bank account for pvt ltd company:
The various benefits of opening a current bank account for the company are listed below:
After the company incorporation, it is very important to open a current bank account in the name of the company to conduct business transactions. A current bank account ensures separate financial transactions for business and personal use. A current bank account offers various benefits to the company in its day to day operations.
If you have any confusion in opening a bank account, contact our team to help you out in Opening a Current Bank Account for Pvt Ltd Company.
Documents required for current account bank opening are:
Opening a current account is important to segregate business transactions from personal transactions, payment of salaries, dividends, etc.
Yes, a pvt Ltd company can open multiple bank accounts in the name of the company without any restriction.
Yes, GST is not mandatory to open a current bank account for a private limited company for its business transactions.
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