Current Account Opening for a Company in India — Documents, Banks and Process

Opening a current account is one of the first practical steps after incorporating a private limited company or LLP. A current account in the company's name is mandatory for business financial operations — you cannot use a personal savings account for company transactions. Here is a complete guide to opening a current account for a newly incorporated business entity in India.

Why a Current Account is Necessary

• GST invoices must be raised from a current account linked to the GST registration
• ROC compliance requires the company's share capital to be deposited in a company bank account
• Income tax and TDS payments must be made from the company's account
• Vendor payments, salary processing and all business transactions must be routed through the company account
• For MCA compliance, Share Application Money must be received in the company account

Documents Required for Current Account Opening

For Private Limited Company:

• Certificate of Incorporation
• Memorandum of Association (MoA) and Articles of Association (AoA)
• PAN card of the company
• Board Resolution authorising account opening and specifying the authorised signatory
• KYC documents of all directors (PAN, Aadhaar, photograph, address proof)
• Registered office address proof (utility bill, rental agreement or NOC from owner)
• GST registration certificate (if already obtained)

For LLP:

• Certificate of Incorporation (Form LLP 11)
• LLP Agreement
• PAN card of LLP
• KYC of all designated partners
• Registered office proof

Choosing the Right Bank

For Kerala businesses, the following banks are most commonly used for company current accounts:

• Federal Bank and South Indian Bank: Kerala-headquartered private banks with excellent regional branch networks and strong digital banking
• HDFC Bank and ICICI Bank: Pan-India private banks with feature-rich current account products and smooth online banking
• State Bank of India and Canara Bank: Public sector banks — preferred for government tenders and subsidised loans (Mudra, CGTMSE)
• Kotak Mahindra Bank: Good for technology companies and startups — fast account opening, strong API banking

New-Age Digital Banking Options

For startups and digitally-native businesses, neo-banks and fintech platforms like RazorpayX, Fi Business, Open, and YONO Business (SBI) offer current account-linked business banking with automated GST payment integration, expense management and payment gateway integration.

Minimum Balance and Charges

Current accounts typically require a Quarterly Average Balance (QAB) or Monthly Average Balance (MAB) ranging from ₹5,000 to ₹1,00,000 depending on the bank and account type. Failing to maintain the minimum balance attracts charges of ₹500 to ₹5,000 per month. Choose an account tier that matches your expected transaction volume.

Conclusion

A company current account is the financial lifeline of your business. Opening it correctly — with the right documents and bank choice — gets your business operational quickly. SPOTON guides Kerala businesses through the complete post-incorporation setup including current account opening, GST registration and PAN application. Contact us for end-to-end company incorporation services.