To open a company bank account in India, apply for a current account in the company’s name and submit the required incorporation, KYC, and address documents. Banks typically require the Certificate of Incorporation, company PAN, MOA and AOA, board resolution, authorized signatory details, director KYC, and registered office proof. After verifying the details and completing KYC, the bank activates the account, usually within a few working days.
Opening the bank account soon after company incorporation helps establish a separate financial identity and keeps business transactions distinct from personal funds. For companies with share capital, the account also facilitates depositing the subscribed share capital before filing Form INC-20A, where applicable.
Key Takeaways
- Private limited companies and OPCs generally use a current account for business transactions, while LLPs, partnerships, and proprietorships can also maintain business-specific accounts.
- Keep the Certificate of Incorporation, company PAN, MOA, AOA, board resolution, authorized signatory KYC, and registered-office proof ready before applying.
- Ensure the company’s name, address, PAN details, and authorised signatories match the MCA and income-tax records to avoid KYC delays.
- Companies with share capital must deposit the subscribed share capital and file Form INC-20A within 180 days of incorporation, where the declaration applies.
- Minimum balance requirements vary by bank and account type, while some banks offer zero-balance or low-balance business accounts.
- Several banks provide online or video-KYC account opening, reducing the need for a branch visit.
Prerequisites (Documents) to Open a Bank Account for a Company
Before applying for a corporate bank account, prepare the following documents:
- Certificate of Incorporation (COI) showing the company’s legal existence.
- Company PAN card issued in the company’s name.
- Memorandum and Articles of Association (MOA/AOA) defining the company’s objectives and governing rules.
- Board resolution authorizing the account and appointing signatories.
- KYC documents including identity proof, address proof, and photographs of authorised signatories.
- Registered office proof such as a utility bill, rent agreement, lease deed, or NOC.
- GST Registration Certificate, if the company has GST registration.
- Beneficial ownership declaration, where required by the bank.
- Company seal or stamp, if required by the bank.
How to Open a Bank Account for a Company?
Follow these steps to seamlessly open a bank account for a private limited company:
Step 1: Gather All Necessary Documents
Keep all applicable documents ready (refer to the above section) before starting the application. Ensure that every document is valid, current, and consistent with the company’s MCA and PAN records to avoid KYC delays.
Estimated Timeline: 1-2 days
Step 2: Choose the Right Account Type
Choose a current account designed for frequent business transactions and compare the following factors:
- Check mobile and internet banking, digital payments, cheque facilities, overdrafts, payment gateways, and other services relevant to the business.
- Review maintenance charges, transaction and cash-handling fees, minimum balance requirements, and charges for exceeding transaction limits.
- Confirm whether the bank offers online account opening, video KYC, and digital document submission.
- Check business support, relationship manager availability, and branch assistance before deciding.
Estimated Timeline: 1-2 days
Step 3: Submit the Application
Complete the bank’s current account opening form and submit it with the required documents.
- Complete verification: Follow the bank’s In-Person Verification (IPV), video KYC, or online verification process for the authorised signatories.
- Make the initial deposit: Deposit the required amount based on the bank and account type.
- Provide additional details: Submit any further information or documents requested during the bank’s KYC review.
Estimated Timeline: Same day or 1 day
Step 4: Verification by the Bank
Complete the bank’s verification process after submitting the application and documents.
- Confirm signatory authority: Ensure the board resolution clearly authorises the listed signatories to operate the account.
- Verify company details: Ensure the company’s incorporation and other details match the MCA records.
- Complete address verification: Facilitate a physical or other registered-office verification if the bank requires it.
Estimated Timeline: 2-5 working days
Step 5: Activate the Account
Complete the activation process after the bank approves the application and verification.
- Make the initial deposit: Deposit the required amount based on the account type. Private banks (HDFC, ICICI, Axis) commonly require ₹10,000–₹25,000, while public sector banks (SBI, PNB, Bank of Baroda) often require ₹5,000–₹10,000. Some startup accounts offer zero-balance options.
- Check balance requirements: Confirm the minimum balance and applicable charges before funding the account.
- Collect banking credentials: Obtain the account number, cheque book, debit card, and internet banking credentials.
- Confirm activation: Verify that the account is active and ready for business transactions.
Estimated Timeline: 1-2 days
Step 6: Complete Post-Opening Formalities
Complete the required compliance steps after activating the company bank account:
- Deposit the subscribed share capital: Deposit the required paid-up capital into the company’s bank account and retain the transaction proof.
- File Form INC-20A: Where applicable, file the declaration of commencement of business within 180 days of incorporation after receiving the subscription money.
- Maintain corporate records: Keep the board resolution and bank account details in the company’s statutory records.
- Update required registrations: Furnish the bank account details in the GST profile and other regulatory records whenever required.
- Separate business finances: Route company receipts and payments through the company account instead of using personal accounts.
Estimated Timeline: Immediately after opening
How Much Does It Cost to Open a Company Bank Account in India?
Opening a company current account is usually free, but the account may involve minimum-balance requirements, maintenance charges, transaction fees, and other banking costs. The exact charges depend on the bank, account variant, transaction volume, and facilities selected.
| Cost Component | Typical Amount | Notes |
| Account opening fee | ₹0 | Most banks do not charge a separate account-opening fee. |
| Minimum / average monthly balance | ₹5,000–₹25,000+ | Public-sector banks often start around ₹5,000–₹10,000, while private-bank accounts may require ₹10,000–₹25,000 or more. |
| Non-maintenance charges | ₹400–₹1,500/month | Applies when the required balance is not maintained, subject to the bank’s tariff. |
| Initial deposit | ₹0–₹25,000+ | Depends on the account’s balance requirement; some startup accounts offer zero-balance options. |
| Cheque book | Often free | Additional or replacement cheque books may attract charges. |
| Business debit card | ₹300–₹1,000/year | Annual card charges vary by bank and account type. |
| Transaction charges | Varies | Digital transfers may be free within prescribed limits, while cash deposits and other transactions may attract charges. |
| Professional assistance (optional) | ₹1,000–₹5,000 | Applies when a CA or consultant assists with documentation or account opening. |
Popular Banks for Corporate Bank Accounts
Some popular choices to open a company bank account are:
- HDFC Bank: Known for its extensive branch network and excellent digital banking platform, including a user-friendly app.
- ICICI Bank: Offers a wide range of corporate products and services, with strong digital and online banking features.
- Axis Bank: A top choice for its attractive schemes for startups and small businesses, often with lower fees and great support.
- State Bank of India (SBI): As a public sector bank, it has a vast reach, often with lower fees, but its digital services might be less advanced than private banks.
- Kotak Mahindra Bank: Offers a personalized banking experience and robust corporate solutions.
Tips for a Smooth Corporate Bank Account Opening
To make the process of opening a company bank account as seamless as possible, follow these tips:
- Keep Digital Copies Ready: Have scanned copies of all the necessary documents required for opening a bank account for the company on hand.
- Match MCA Records: Double-check that all information, including the company name and address, is identical to what’s registered with the MCA.
- Open the Account Promptly: It’s best to open the bank account within 30 days of incorporation. Many banks prefer this to ensure they’re dealing with a newly established, active company.
- Use the Company Name Consistently: Enter the exact legal name shown on the Certificate of Incorporation and PAN across all bank forms.
- Choose the Right Account Variant: Compare transaction limits, cash-handling charges, digital banking, and minimum balance requirements before selecting the account.
