How Can I Open an LLP Account?

Following the incorporation of an LLP online, various requirements must be met. One such procedure includes creating a bank account in the name of the LLP. Keep reading to know how.

Every form of corporate business entity including an LLP is required to open a current bank account. This is to enable funds to be received or transmitted for the LLP’s commercial transactions. Let’s see how to open an LLP account.

Need to Open an LLP Account?

A current LLP account is the first stage in an LLP’s post-registration compliance. It is required for all types of businesses. A business requires numerous transactions on a regular basis, and with a current account, any number of transactions can be carried out. It is a zero-interest account. As a result, it is advantageous to do business smoothly and without regard to the number of transactions.

Benefits of Opening an LLP Current Account

A current LLP account optimizes banking. It offers greater advantages than a savings account. Banks offer a variety of services to current account holders.  24/7 hour banking, internet banking, and doorstep banking, all of which are essential for running a business efficiently are readily made available to current account holders.

Additionally having a current account demonstrates that the company operational. Therefore using a  current account to conduct transactions enhances the LLP’s goodwill.

Moreover, every LLP requires credit in order to conduct day-to-day operations. Overdrafts are readily available with a current account. In the event of a cash shortage, an overdraft option is needed. Even though the bank may charge interest, short-term funding needs will be fulfilled.

Documents Required to Open an LLP Account

Generally accepted list of self-attested documents and details to be submitted for an LLP Certificate of LLP registration issued by registrar Communication of address proof of the LLP if it is different from the address mentioned on the Certificate of Registration Current landline/ mobile number and e-mail ID of the LLP Permanent Account Number (PAN) of the entity Board resolution Latest passport-size colour photograph of each of the authorised signatories A copy of one valid photo identification and address proof of each of the authorised signatories In case POA has been granted for account operations – photograph, identity and address proof of the POA holder should also be submitted along with the POA agreement Shareholding pattern/ list of beneficial owners holding more than 15% in the company either directly or indirectly (must be on letterhead). PAN card/ identity proof of such beneficial owners as identified above. Address proof of beneficial owners as identified above. LLP deed agreement. LLP letter Updated list of designated partners. Account opening cheque from existing Current Account.

Open an LLP Account with the Assistance of Vakilsearch

When one engages the aid of Vakilsearch, LLP company incorporation and bank account creation is hassle-free and stress-free. Timely and legally sound registrations are made possible with the help of our experts who smoothly handle incorporation formalities as well as address and take care of post-incorporation queries regarding tasks such as opening an LLP bank account.