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Private Limited

How to Open Private Limited Company Bank Account?

Businesses need flexibility at all times. Particularly when it comes to money. Opening a current account in the name of the company is one of the first procedures conducted after establishing a private limited company.

A regular bank savings account cannot be used by businesses. This is because regular accounts have several transaction limits. Current accounts, on the other hand, have no transaction limits. All entrepreneurs open current accounts as soon as they start their business. Current accounts also do not earn any interest, unlike a savings account, recurring deposits, etc, and the charges for the same tend to be high. In this article, we look at the procedure for opening a current account and the documents required for a PVT Company Registration. This article explains opening a current account for a PLC

Current Account for Private Limited Company

Based on regulations, though a private limited company doesn’t need to open a current account after its incorporation, it is highly recommended. 

This is because a regular savings account cannot be used by businesses as it has several transaction limits. A current account, on the other hand, has no transaction limits and helps businesses to maintain liquidity. 

The process of opening a current account for a private limited company is simple, and the documents required include – 

  • The certificate of incorporation,
  • Resolution of the board of directors to open an account,
  • Identification of those who have authority to operate the account and
  • Identity proof of all the directors/authorized signatories
A current account is highly suitable for small businesses, private limited companies, trusts, or NGOs to do unlimited transactions for their financial needs of the business.

Documents for Opening a Current Account For PLC

As compared to the difficulties a sole proprietor would go through, a private limited company registration has it easy. As per Reserve Bank of India’s KYC norms, the following are the documents required to open a current account in the name of the company

  • Certificate of incorporation
  • Resolution of the Board of Directors to open an account and identify those who have authority to operate the account
  • Power of Attorney granted to its managers, officers or employees to transact business on its behalf (if applicable)
  • Copy of PAN Card allotment letter
  • Copy of the telephone bill
  • Shop Licence registration.

The Following Documents, However, May Be Required to Be Presented to Your Bank

  • Memorandum of Association (MOA) & Articles of Association (AOA)
  • Latest list of directors as per the bank’s format
  • Identity proof of all directors/authorized signatories
  • PAN card of directors
  • Shareholding pattern of the company as per the bank’s format.

Along with a current account, banks typically also offer debit cards, mobile banking and net banking facilities, as they do with savings accounts. A current account takes just a couple of days to open, provided you have all the documents ready and you’re creditworthy.

Benefits of Opening a Current Account For PLC

Opening a current account for PLC (Public Limited Company) offers a range of benefits, providing financial flexibility and efficient business transactions.

Overdraft Facility

The most significant advantage of a current account is the easy access to an overdraft. A short-term loan on which a bank may or may not charge interest is known as an overdraft. Normal bank accounts, of course, do not provide this service (think of it as a credit card attached to a bank account).

Separate Professional & Personal

Even sole owners use current accounts, which are used by registered businesses such as private limited companies. This is because it helps them to keep their personal and company finances separate. This is also advantageous from a tax standpoint. Furthermore, because the account would be in the company’s name, it adds to the operation’s credibility.

Board Resolution Format for Opening Company Current Account For PLC

The following format can be used to create a board resolution for opening a private limited company’s: current account.

 Sample Format


A proposal to open a current account with the (Bank Name and Address) was placed before the Board for conducting its day-to-day financial transactions. After discussions, the Board unanimously:

“RESOLVED THAT Current Account in the name & style of ‘(COMPANY NAME)’ be opened with the (Bank Name and Address), for the operations of the activities of the Company and that the following Authorized Signatory(ies) of the Company be and are hereby authorized to open and operate the said account:


  • Authorised Signatory
  • Authorised Signatory


  • Authorised Signatory
  • Authorised Signatory


  1. THAT the said Bank be instructed to accept and act upon any instructions relating to the account kept in the name of the Company or relating to any transactions of the Company with the Bank, provided the instructions are signed by the authorized signatory(ies) of the Company in the manner mentioned as above.
  2. THAT the said Bank be instructed to accept receipts for money, deeds, securities or other documents or papers or property or any indemnities given on behalf of the Company provided they are signed by the authorized signatory(ies) of the Company in the manner as mentioned above.
  3. THAT the bank be furnished with a list of the names of Directors of the Company and a copy of the Memorandum & Articles of Association and be from time to time informed by notice in writing under the hand of the Directors/Authorized Signatory of the Company of any changes which may take place therein and be entitled to act upon any such notice until the receipt of further notice under the hand of any Directors / Authorized Signatory.
  4. THAT the resolution is communicated to the Bank and remain in force until duly rescinded and notice thereof in writing be given to the Bank by any of the Directors of the Company.”

“RESOLVED FURTHER THAT the aforesaid power entrusted to the said official shall be valid and effective unless revoked earlier by the Board or shall be exercisable by him so long as he is in the concerned to the Company.”

“RESOLVED FURTHER THAT all acts, deeds, things, matters, etc. as aforestated shall be deemed to be valid and enforceable only if they are consistent with the instant resolution as may be relevant in this case and that the Board shall not be responsible for any acts beyond the scope of the aforestated powers done by (Name of the authorized person(s) and such invalid, illegal acts, and acts done beyond the scope of powers granted in this Resolution shall not bind the Company against any third parties or before any authorities in any manner and that the Board shall not be answerable in that behalf.”

“RESOLVED FURTHER THAT a certified copy of the resolution be given to anyone concerned or interested in the matter.”


            (Director Name)


How do I open a bank account for a limited company?

To open a bank account for a limited company, you will need to provide the necessary documentation, such as the company's certificate of incorporation, memorandum and articles of association, and proof of identity and address for the company directors. You also can approach a bank of your choice and inquire about their specific requirements for opening a bank account for a limited company.

Which bank is best for private limited company?

The choice of bank for a private limited company depends on various factors, including the company's specific banking needs, the services offered by the bank and the bank's reputation and reliability. It is advisable to research and compare the offerings of different banks before making a decision.

Can a Pvt Ltd company open a savings account?

Yes, a private limited company can open a savings account. However, a current account is typically more suitable for business transactions, as it allows for a higher number of transactions and is designed to meet the specific needs of businesses

Is GST required to open a current account?

No, GST registration is not required to open a current account. However, the bank may require the company to provide its GST registration certificate as part of the account opening process.

Who cannot open a savings account?

Certain types of businesses, such as illegal gambling, cannabis and adult entertainment companies, may not be able to open a business account with most banks. Additionally, non-residents and foreign business customers may not be eligible to apply for a business account online.

What is the maximum limit of a savings account?

The maximum limit of a savings account varies by bank and may depend on the specific type of savings account. It is advisable to check with your bank for the applicable limits and any associated terms and conditions.

What is the maximum limit of a cheque?

The maximum limit of a cheque, also known as the cheque limit, is the maximum amount that can be paid by cheque from a bank account. The cheque limit is typically set by the account holder's bank and may vary based on the account type and other factors.

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