Opening a bank account for the company is a much different procedure than normally followed while opening a personal bank account. The directors of the company have to consider various factors before opening a bank account.
Opening a separate bank account for the company is better because it keeps the cash flow of the company and personal cash flow separate.
Moreover, the documents that are needed are different so to set in motion the process the directors of the company need the following:
Every company whether it is a private limited company, an LLP or one person company requires a board resolution for opening a bank account. If the company wants to open a bank account in more than one bank; there should be a separate board resolution for every account that is opened.
Once a board meeting has been held, and the board of directors have come to decision to open a bank account in a bank or different banks; there they are required to record the formal decision in the resolution.
The resolution formed must be signed by 2 or more directors of the company, the decision formed by the company must be created with the smallest number (Quorum) of members that are required to start a meeting and take that official decision.
Officer, director or an employee can be nominated for opening and operating the bank account of the company. The person that is nominated should be selected in the board meeting that is held for the passing of the resolution for an opening bank account.
The company must retain the copy of the resolution, and the original board resolution must be submitted with the bank for the purpose of opening the account.
Whenever we open a bank account, the applicant needs to submit the identity proof and hence while opening a bank account with a business it is no different. The directors need to submit the following documents:
A sole proprietor or owner of the company in a sole proprietorship are considered the same, and hence they need to present their personal identity, i.e. Passport, Driver's License, Voter Id, Aadhar Card.
Business name certificate or certificate that is issued by the government of India must be submitted along with other documents.
Incorporation certificate is the certificate that is granted to any company other than sole proprietorship once it is incorporated in India. The applicant needs to submit these documents with the bank as the company is considered a separate legal entity than the owner of the company.
The applicant needs to submit the address proof of the company by submitting the sale deed or tax receipts if he owns the premises or rent agreement if you rent that particular premises.
NOTE: You need to submit the NOC from the owner of the property as well if the premises is rented.