How to Open a Company Bank Account in India

Before You Walk Into a Bank: Prerequisites

A current account application moves quickly only when the company's foundational documents are already in order. Banks will not begin Know Your Customer (KYC) checks on an entity that cannot evidence its own existence and its decision to bank. Treat the following as hard prerequisites rather than nice-to-haves.

• Certificate of Incorporation (COI) with a valid Corporate Identity Number (CIN), or LLP Identification Number (LLPIN) for an LLP, downloaded from the MCA portal.
• Company PAN issued in the entity's own name. Under RBI rules the PAN of the entity is mandatory; a director's personal PAN cannot substitute for it.
• Constitutional documents appropriate to your structure: Memorandum and Articles of Association (MOA and AOA) for a company, the registered LLP Agreement for an LLP, or the partnership deed for a firm.
• Registered office proof tied to the address filed with the ROC, supported by a recent utility bill (typically not older than two to three months) and a rent agreement plus owner NOC if the premises are leased.
• A duly passed Board Resolution authorising the account, the bank, and the signatories.

If your COI was issued through SPICe+, the system also allots PAN and TAN automatically, so you usually have the entity PAN in hand on day one. Confirm the PAN is printed correctly in the company name before you proceed, because a single mismatch against MCA records will stall the bank's verification.

Understanding the KYC Framework Banks Apply

Every document a bank asks for traces back to the Reserve Bank of India's Master Direction on Know Your Customer, 2016, and the anti-money-laundering obligations that sit on top of it. For a non-individual customer the bank verifies three layers, and understanding them explains why the document list feels long.

That third layer, the Ultimate Beneficial Owner (UBO), surprises many first-time founders. RBI's KYC Direction requires the bank to identify and verify any natural person who holds, directly or indirectly, more than a 25% stake or voting rights in the company (the threshold differs for partnerships and trusts). In practice many banks go further and collect KYC for all directors on record at the MCA, not just the authorised signatories, to satisfy their internal AML policy.

India's Central KYC Registry (CKYC), run by CERSAI, can speed up the individual-level checks because a director who already holds a 14-digit CKYC number may not need to resubmit personal KYC from scratch. The entity itself is still verified through the documents above. Several banks now offer video-based customer identification (V-CIP) for the individual signatories, which can remove a branch visit, though physical verification of the registered office is still common for new companies.

Choosing the Right Bank and Account Variant

Current accounts are not commodities. The right choice depends on how your company actually moves money, and the headline interest rate is irrelevant because current accounts in India do not earn interest. Weigh these factors instead.

• Minimum balance commitment. Most current accounts carry an Average Monthly Balance (AMB) or Average Quarterly Balance requirement. For company current accounts this commonly ranges from a few thousand rupees in basic variants to ₹25,000, ₹50,000 or more for premium tiers, and metro branches typically demand more than rural ones. Falling short triggers a non-maintenance penalty, so size the variant to the cash you can realistically park.
• Free transaction and cash-handling limits. Banks bundle a free quantum of cash deposits and NEFT/RTGS/IMPS transactions, then charge beyond it. RBI norms let banks set free cash-handling limits as a multiple of the previous month's AMB, so a higher-balance account usually buys you more free throughput.
• Digital and integration features. Bulk payments, API/connected-banking access, automated GST and payroll integrations, and quality of internet banking matter far more day to day than branch aesthetics.
• Branch and relationship support. A nearby branch and a responsive relationship manager smooth out cheque-book issuance, mandate changes, and trade or forex needs.

Compare at least two or three banks on these dimensions before deciding. Some private banks and newer digital-first players advertise low or zero-balance current accounts for startups, which can suit an early-stage company conserving cash, but read what is traded away in transaction limits and charges.

How the Documents Differ by Entity Type

The document checklist alongside this guide is written for the common company case, but the constitutional documents change with your structure, and getting this wrong is a frequent cause of rejected applications.

• Private Limited Company and OPC: COI, MOA and AOA, company PAN, and a Board Resolution. For an OPC the bank will also note the sole member and the nominee on record.
• Limited Liability Partnership: COI with LLPIN, the registered LLP Agreement instead of MOA/AOA, LLP PAN, and a resolution or authorisation by the designated partners.
• Partnership firm: the partnership deed, firm PAN, and the partners' authorisation; registration certificate where the firm is registered.

Foreign or NRI directors add a layer. Their identity is usually established through a certified copy of the passport, with overseas address proof, and foreign documents generally need to be notarised in the home country and either apostilled (for Hague Convention countries) or attested by the Indian Embassy or High Commission. Build in extra time if any signatory sits outside India.

What to Do After the Account Is Live

Opening the account is the start, not the finish. A few follow-through steps keep the company compliant and the account usable.

• Deposit subscription capital correctly. Shareholders should remit their subscribed share capital into this account so the paid-up capital is properly evidenced in the books and the auditor can verify it.
• Link the account everywhere it is needed. Add the bank details to your GST registration on gst.gov.in, to income-tax and TDS filings on incometax.gov.in, to Razorpay or other payment gateways, and to your accounting system.
• Keep the signatory mandate current. Whenever a director is added or removed via Form DIR-12 on mca.gov.in, update the bank with a fresh board resolution and revised specimen signatures. An out-of-date mandate can freeze payments at the worst moment.
• Mind FEMA if foreign funds are involved. Inbound foreign investment or share-subscription money brings reporting obligations under the Foreign Exchange Management Act; coordinate with your banker on the inward-remittance advice and any RBI filings.
• Maintain the balance and watch the charges. Set a reminder around the AMB requirement and review the quarterly charge statement so penalties do not quietly erode your funds.

Realistically, a company with clean, ready documents can open a current account within a few days; the variable is KYC and registered-office verification, not the form-filling. If your incorporation papers, PAN, and board resolution are aligned from the outset, the bank has little to query.