Documents Required For Opening A Trade Current Account
If you own a business, you need a trade current account for your everyday transactions. This is because business owners need to carry out a significantly higher number of banking transactions on a day to day basis. These accounts are created by banks as per the applicant’s request and are designed for immediate, frequent access. A current trade account is important for business owners since its makes it possible for them to make liquid deposits. However, the documentation process for a current trade account is quite elaborate as compared to savings accounts.
Documents required for opening a current trade account
Here are all the documents you need to a trade current account
ID proof documents of all account holders: Since current trade accounts can be opened jointly along with your business partner/s, you need to provide the ID proof documents of all account holders. An ID proof document is one which features a photograph of the account holder and banks consider only government approved photo ID documents such as Driving License, Aadhaar Card, Passport or Voter’s ID.
PAN Card Document: Along with the ID proof document, all account holders also need to provide their Permanent Account Number or PAN Card. PAN Card is a mandatory document for opening all types of business trading accounts, whether they are big or small business current accounts.
Address Proof documents: Parties interested in opening current trade accounts need to provide two sets of address proof documents:
- Personal address proof documents: All account holders must provide photocopies of any of the government recognised documents. If you are going into business jointly with another individual, both of you have to provide your individual address proof documents. Banks accept Aadhaar Card, Passport, Voter’s ID, utility bills etc., as valid address proof documents.
- The address proof documents of the registered business: You also need to provide the address proof documents of the place where your business is registered; office, shop or commercial property. The document should have the names of all the business owners along with the registration dates.
Certificate of incorporation: Whether it is a company or a trust for which you intend to open a trader’s current account; you need to submit the certificate of incorporation document. You must also provide a photocopy of the memorandum of association documents.
Partnership agreement: Since partnerships are very common in business, you need to provide a photocopy of the partnership agreement as well. The document should contain a detailed list of all the partners who will be operating the current trade account.
Cheques from existing savings accounts: All account holders must also provide cheques from their existing savings accounts to transfer funds into the trader’s current account. It does not matter if you and your business partner/s have savings accounts in different banks.
Passport size Photographs: All account holders must submit 2 passport size photographs. One of the photographs should be attested to the account opening form whereas the other is attested in the passbook provided by the bank.
Big and small business current account holders get a wide range of personalised options which can help them with their daily financial dealings. These days, you can also open a current trade account online. However, this service is currently offered only by a select few banks. If you select the online account opening option, you need to submit scanned, self-attested copies of your original documents along with the application form. A few banks also offer door-step services in which a bank representative may be sent to your home to collect photocopies of the above mentioned documents.