Here’s why startups need a Current Account

As an entrepreneur launching a startup in India, you may juggle multiple tasks, from securing funding to building your team and launching your product or service. Amid all these responsibilities, paying attention to the importance of having a dedicated Current Account for your startup is crucial. 

Benefits of a current startup account

Segregation of personal and business finances:

By opening a Current Account for your startup, you clearly distinguish between personal and business finances. This separation simplifies accounting and ensures that business transactions remain organized and transparent. It also helps during tax filing, as you can easily track business expenses and claim deductions, leading to accurate financial reporting.

Professional image and credibility:

A startup Current Account allows you to transact using your business name instead of your personal name. This professional image adds credibility to your startup, building trust with clients, suppliers, and investors. Clients seeing payments addressed to your business instills confidence in your reliability and commitment to transparently conducting business.

Features of a current startup account

Online account opening:

Gone are the days of long queues at the bank. Most financial institutions now offer the convenience of opening a Current Account for your startup online. You can complete the application process with just a few clicks, saving valuable time and effort. This streamlined approach aligns with the fast-paced nature of startups, allowing you to focus on building your business.

Business-specific services:

A startup’s Current Account comes with a range of tailored services designed to meet the unique needs of businesses. These may include features such as online banking, mobile banking applications, debit cards, cheque books, and access to a dedicated relationship manager. Such services empower you to manage your finances effectively, ensuring smooth day-to-day operations.

Documents required for opening a Current Account for startups

To open a Current Account for your startup, you will typically need the following documents. However, it is important to note that the exact list of documents required could be different on a case to case basis.

  • Business registration documents: Provide your startup’s registration certificate or incorporation certificate, along with the memorandum and articles of association
  • KYC documents: Submit your PAN card, Aadhaar card, and address proof, such as a utility bill or rental agreement, as part of the Know Your Customer (KYC) requirements
  • Partnership deed or board resolution: Provide the partnership deed if your startup operates as a partnership firm. In the case of a company, submit a board resolution authorizing the opening of a Current Account
  • ID and address proof of authorized signatories: Furnish the identity and address proof of the individuals authorized to sign on behalf of your startup

To wrap up

As a startup founder in India, opening a Current Account dedicated to your business is a wise decision. By ensuring you have the necessary documents ready, you can quickly open a Current Account online and unlock the full potential of your startup. So, take this essential step towards building a solid financial foundation for your startup and set yourself up for long-term success.