One Person Company Bank Account Opening: Process and RBI Rules

Key Takeaways

• An OPC can open only a current account in its own name to manage business transactions separately from the member’s personal finances.
• The OPC can open a bank account during incorporation through AGILE-PRO-S or directly with a bank after receiving the Certificate of Incorporation.
• Banks typically require the OPC’s Certificate of Incorporation, MOA, AOA, PAN, account-opening authorization, and KYC documents for the relevant individuals.
• A single-director OPC can record its decision to open a bank account in the minutes book under Section 122(4) of the Companies Act, 2013, without holding a board meeting.
• RBI’s current account restrictions apply only once an OPC’s total bank credit reaches ₹10 crore, so a new OPC can open its account with any bank.
• The member must deposit the subscribed share capital into the One Person Company’s bank account before filing Form INC-20A within 180 days of incorporation.

Why Does an OPC Need Its Own Bank Account?

A separate bank account of an OPC helps it meet legal requirements and manage finances without mixing business transactions with the owner’s personal expenses. The OPC bank account helps:

• File Form INC-20A: The member deposits the subscribed share capital into the entity’s account. The OPC then uses the payment details to file Form INC-20A within 180 days of incorporation.
• Maintain records for the annual audit: Every OPC must maintain books of account and have its financial statements audited annually. A dedicated bank account makes it easier to track business receipts and payments and reconcile them with the business’s books.
• Manage taxes and business payments: The OPC uses its account to pay TDS, GST, and advance tax, receive client payments, and pay the director’s salary.
• Meet GST requirements: Under Rule 10A of the CGST Rules, a GST-registered OPC must add its bank account details after registration. Failure to comply can lead to suspension of the GST registration (with intimation in FORM GST REG-31), a block on filing GSTR-1/IFF, and possible cancellation. The suspension is revoked once the bank details are furnished.
• Apply for an Import Export Code (IEC): An OPC engaged in imports or exports may need an IEC license. The DGFT application requires bank account details, and the OPC uses its account to receive business payments and manage export proceeds.
• Build a business credit profile: Banks and schemes such as CGTMSE and MUDRA assess an OPC’s financial statements, cash flow, and banking transactions when considering business loans. A separate account helps establish a clear record of the entity’s financial activity.

Note: Under Rule 10A of the CGST Rules, as amended by Notification No. 38/2023-Central Tax dated August 4, 2023, a GST-registered OPC must submit its bank account details on the common portal within 30 days of registration. If it files GSTR-1 details or uses the Invoice Furnishing Facility (IFF) earlier, it must provide the details before doing so.

Which Type of Bank Account Can a One Person Company Open?

An OPC can open only a current account for its business transactions. Unlike a savings account, a current account supports frequent business transactions, including vendor payments and tax payments. Depending on the bank and the OPC’s eligibility, it may also provide access to overdraft (OD) or cash credit (CC) facilities to manage working capital.

Banks offer different current account plans, so compare these features before choosing one:

• Minimum balance: Check the required monthly average balance and any penalty for falling below it.
• Transaction limits: Compare the number and value of free cash deposits, withdrawals, and transfers.
• Bank charges: Review fees for cheque books, fund transfers, cash handling, and other services.
• Digital banking: Look for net banking, UPI, and bulk payment facilities to manage vendor payments and salaries.

Note: An OPC should open an account in the company’s name rather than use the owner’s personal savings account for business transactions. If the company takes a CC or OD facility, RBI rules on current accounts may also apply. Under the RBI’s 2025 directions, borrowers with aggregate banking-system exposure below ₹10 crore can generally maintain current accounts without these restrictions. At ₹10 crore or more, eligibility depends on the bank’s share of the company’s aggregate exposure, with specific exceptions where no bank meets the prescribed threshold.

Documents Required for OPC Current Account

Under the RBI (Commercial Banks – Know Your Customer) Directions, 2025 (Chapter VI, Part C – CDD Measures for Legal Entities), banks must collect documents of the OPC and the relevant individuals associated with it.

Category	Documents
Business documents	Certificate of Incorporation Memorandum of Association (MOA) and Articles of Association (AOA) Business PAN Board resolution authorizing the account and its signatory Proof of registered office address
Director and authorized signatory	PAN Card Aadhaar, passport, voter ID, or driving license Address proof Recent photograph
Sole member (beneficial owner)	PAN, identity proof, and address proof, if the member is not also the director
Other details	Names of persons in senior management Principal place of business, if different from the registered office

Note: The bank may require the director to certify copies of the OPC documents as true copies and present the originals for verification. It may also ask for proof of business activity, such as a Udyam registration, GST certificate, or Shops and Establishment license, depending on the nature of the business and the bank’s requirements.

Board Resolution for a Single-Director OPC

A single-director OPC can approve its bank account opening without holding a board meeting. Under Section 122(4) of the Companies Act, 2013, the director can record the resolution in the minutes book and sign and date the entry. The resolution should specify:

• The bank where the OPC will open its account and the relevant branch.
• The type of current account being opened.
• The name of the person authorized to operate the account.
• Whether the account will be operated solely by the director or under other specified arrangements.

If the OPC has more than one director, it passes the same resolution at a board meeting or by circulation under Section 175.

Note: The OPC nominee does not need to submit KYC documents unless authorized to operate the account, as they have no role until succession.

How to Open an OPC Bank Account in India?

There are two ways to open an account for an OPC: via AGILE-PRO-S while registering the business or directly with a bank of its choice after incorporation. 

1. Open a Bank Account During Incorporation

You can apply for an OPC current account as part of the incorporation process. While filing SPICe+ for OPC registration, submit the linked Form AGILE-PRO-S (INC-35) and select one of the participating banks listed on it to apply for the account.

Once the MCA approves the incorporation, it shares the details of the OPC and the director to complete KYC formalities. The bank activates the account after verifying the required documents and completing its onboarding process.

This option lets you initiate the account-opening process alongside incorporation, rather than applying separately afterward. However, your choice of bank is limited to those available through AGILE-PRO-S.

2. Open a Bank Account After Incorporation

If the OPC does not apply through AGILE-PRO-S, or the director prefers another bank, it can open a current account separately after incorporation. The process typically involves the following steps:

1. Choose a bank: Compare minimum balance requirements, transaction limits, account maintenance fees, and digital banking facilities.
2. Prepare the documents: Collect the business documents, the board resolution, and the KYC of the director and the member.
3. Submit the application: Apply online with video KYC, or visit the branch with the original documents for verification.
4. Complete bank verification: The bank verifies the documents and the director’s identity. It may also conduct additional checks before approving the application.
5. Deposit the share capital: Once the account is active, the member deposits the share subscription money into it.

RBI Current Account Rules That Affect an OPC

An OPC can generally open a current account with any bank, subject to the bank’s due diligence. RBI restrictions determine which banks can maintain current accounts only after the company’s total credit exposure to the banking system reaches a specified threshold.

The RBI introduced these restrictions in August 2020 and consolidated them in April 2022. From April 1, 2026, the Credit Risk Management Amendment Directions, 2025, replaced the earlier framework. The current rules are:

• No bank credit: Any bank can open a current account, subject to its due diligence.
• Credit exposure below ₹10 crore: Any bank can open and maintain a current account without restriction.
• Credit exposure of ₹10 crore or more: The OPC can maintain its current account with a bank that holds at least 10% of its total banking-system exposure. If no bank or only one bank meets this threshold, the two banks with the largest exposures can maintain current accounts. Other banks can maintain only collection accounts and must transfer the funds to the designated account within two working days.

A newly incorporated OPC with no bank borrowings can generally choose any bank for its current account. However, if it expects to borrow as it grows, choosing a bank that may also provide its loans can help avoid changing its banking arrangements later.

What to Do After Opening an OPC Bank Account? Share Capital and INC-20A

Once the OPC’s current account is active, the member must deposit the share capital agreed upon during incorporation. For example, if the member subscribed to shares worth ₹1 lakh, they must transfer ₹1 lakh to the business’s account. This deposit supports the OPC’s first major post-incorporation compliance, Form INC-20A. Here’s what the OPC needs to do:

• Transfer the share capital from the member’s own bank account, so the payment trail clearly shows the member as the payer.
• Keep the bank statement as proof that the share capital has been credited.
• File Form INC-20A within 180 days of incorporation confirming receipt of the share capital and providing the OPC’s bank account details.

Failing to file INC-20A on time attracts a penalty of ₹50,000 on the company and ₹1,000 per day on each officer in default, up to ₹1 lakh under Section 10A(2) of the Companies Act, 2013. However, for an OPC, Section 446B reduces it by 50% to ₹25,000 on the business and ₹500 per day on each officer in default, up to ₹50,000.

Common Reasons Banks Delay OPC Account Opening

Banks may delay an OPC’s account opening if documents are missing, details don’t match, or verification is incomplete. Common reasons include:

• Address mismatch: The registered office address on the Certificate of Incorporation differs from the address proof submitted to the bank.
• Incorrect board resolution: The resolution is unsigned, does not name the authorized signatory, or leaves out how the account will be operated.
• KYC discrepancies: The director’s name or date of birth differs across their PAN, identity proof, and business records.
• Uncertified copies: The business documents lack the required certification and the director’s signature.
• Missing member KYC: The sole member is not the director and has not submitted the KYC documents required for beneficial owner verification.
• Missing business activity proof: The bank requests a GST certificate, Udyam registration, or similar document that the OPC has not provided.
• Unsuccessful address verification: The bank cannot verify the registered office during a site visit, often because a virtual office lacks adequate address documentation.

Conclusion

A current account gives an OPC a clear starting point for managing its finances as a separate legal entity. It holds the member’s share capital, handles business income and expenses, and supports the Form INC-20A filing. Keeping business funds separate from personal money also helps maintain clear financial records.

Most banks open an OPC current account within days, provided the incorporation documents, authorization, and KYC records are in order. RegisterKaro’s experts can help you open an OPC current account through AGILE-PRO-S during incorporation or directly with a bank, then complete the INC-20A filing so you can focus on building your business.