Opening a Current Account

Formalities Before the Letter Is Even Written

A company cannot simply walk into a bank and open an account the way an individual can — because a company is an artificial legal person, it can only act through the humans the law and its own Board authorise. Before the Secretary drafts the letter to the bank, two things must already be in place:

1. A Board Resolution, passed at a duly convened Board Meeting, authorising the company to open a Current Account with the named bank and branch, and specifying who is authorised to operate the account (typically naming the Company Secretary and one or more directors, and stating whether they may sign singly or must sign jointly).
2. Specimen signatures of every person the resolution names as an authorised signatory, so the bank can verify signatures on future cheques and instructions against them.

Documents the Bank Will Ask For

Along with the account-opening application (in the bank's own prescribed form), a company is normally asked to submit:

• A certified true copy of the Board Resolution authorising the account and naming the authorised signatories.
• A certified copy of the Certificate of Incorporation.
• Certified copies of the Memorandum and Articles of Association.
• The company's PAN card, and its CIN.
• Proof of the company's registered office address.
• A list of the company's Directors, along with their own identity and address proof (KYC documents), as the bank's own 'Know Your Customer' norms require.
• Specimen signature cards of the authorised signatories, and their photographs.
• The initial deposit required to open the account, as per the bank's minimum-balance rule for a Current Account.

The Letter Requesting the Bank to Open the Account

The Secretary's letter forwarding all of this simply introduces the request, lists what is enclosed, and asks the bank to open the account and confirm the account number once opened.

Specimen Letter — Opening a Current Account

KONKAN AGRO INDUSTRIES LIMITED

Registered Office: Plot No. 14, MIDC Industrial Area, Ratnagiri – 415612

CIN: U01100MH2015PLC123456

Date: 12th June

The Manager

Bank of Maharashtra

Ratnagiri Main Branch

Ratnagiri

Dear Sir/Madam,

Sub: Request to open a Current Account in the name of the Company

We are a company incorporated under the Companies Act, 2013, engaged in the manufacture and sale of agro-based products, and we wish to open a Current Account with your branch for our day-to-day business transactions.

At its meeting held on 5th June, our Board of Directors passed a Resolution authorising the Company to open this account and naming the persons authorised to operate it. We enclose the following documents for your kind reference and records:

1. Certified true copy of the Board Resolution dated 5th June.
2. Certified copy of the Certificate of Incorporation.
3. Certified copies of the Memorandum and Articles of Association.
4. Copy of the Company's PAN card.
5. Specimen signature cards and photographs of the authorised signatories named in the Resolution.
6. Cheque No. 000121 for ₹25,000 drawn on our existing bankers, towards the initial deposit.

We request you to kindly open the Current Account at the earliest and inform us of the account number allotted, along with the cheque book and any other formalities to be completed.

Thanking you,

Yours faithfully,

For Konkan Agro Industries Limited

(Anjali Deshpande)

Company Secretary

Encl: As above …