Which businesses are eligible to open a current account in India?

To address their increased financial needs, businesses in India usually have a current account associated with their banks. A current account provides benefits and lucrative deals which are well-suited for the companies. With a current account, a company can enjoy customized and tailor-made services. A current account enables all kinds of businesses to carry out their financial transactions of high amounts and also provides a range of other benefits that are specifically suited to these businesses. 

Many banks offer free of cost folio charges, free demand draft facilities, lucrative overdraft facilities, significant number of free cheque books, waivers for many other services. After this amount of free cheques and demand draft is met, you may need to pay nominal fees to back extra quantities of these. 

It is, therefore, essential or businesses to maintain a current account where all their finances are taken care of. If you are a new business or planning to venture into a business, then you must need to know the very basic requirements of opening a current account. Before even looking at the list of documents to be submitted for this purpose, it is more essential to look at the eligibility requirements. 

If you are wondering what type of businesses are eligible to open a current, read below to find out more. 

The following types of businesses are eligible to open a current account in India: 

  • Sole proprietorship firm

It is a firm run by an individual person but there is no legal distinction the business owner and the firm

  • Partnership firm

This is a firm where two or more individuals join forces to operate as a business and agree to share profits between them

  • Public and private limited companies

Public companies are listed on the stock market whereas private one aren’t

  • Limited liability partnership companies

In these types of partnership, some or all partners have limited liabilities 

  • Apart from the above businesses, any resident individual, or, a Hindu undivided family can also open a current account

Nowadays, banks may also offer different types or tiers of current account based on your type of business. The best part of opening a current account in recent times is the fact that you do not have to visit the bank most of the time. You can simply get everything done through your mobile phone or a computer, even open current account online easily. Banks also treat these accounts with utmost care and ensure that you do not face any difficulty in your banking journey with them.

Disclaimer: The above article is subjective and generic in nature. It is purely for informational purposes only. It is recommended not to substitute this article in place of a professional advice.