How to Open a Current Account for a Newly Incorporated Company

Which documents will the bank ask for?

Banks follow RBI KYC directions for legal entities. They need proof of the company's existence and constitution, the identity of people allowed to operate the account, and the identity of beneficial owners. The board resolution must specify which directors or officers can sign and in what combination.

• Certificate of incorporation (with CIN)
• Company PAN
• MoA and AoA
• Board resolution authorising account opening and signatories
• PAN, ID and address proof of directors and signatories
• Registered office proof
• Beneficial ownership declaration

How does the SPICe+ bank account option work?

AGILE-PRO-S, filed with SPICe+, lets you select a participating bank to open the account. The bank receives the company details from MCA, but you still go through its KYC process, video KYC or a branch visit. Some founders prefer to choose their bank independently after incorporation based on fees, digital banking and integrations with accounting tools.

What should you compare between banks?

Current accounts vary by minimum average balance, free cash and transfer limits, charges for cheque books and payment gateway links. For startups, look at API banking, multi-user access with maker-checker controls, export receipt handling with foreign inward remittance certificates, and how easily the bank issues balance confirmations for auditors.

Why is the account linked to INC-20A?

A company with share capital cannot commence business or borrow until it files INC-20A, declaring that every subscriber has paid for the shares agreed in the MoA. The form needs proof of that payment, normally the bank statement. INC-20A must be filed within 180 days of incorporation; failure attracts penalties and can lead the ROC to start strike-off action.

Subscription money should come from each subscriber's own bank account and match the amounts stated in the MoA subscription page. Cash deposits make the audit trail harder to prove and can draw questions later.

Common mistakes to avoid

Founders often pay early expenses from personal accounts and forget to record them, mix subscription money with loans, or let the account go unused. Record any pre-incorporation expenses with a board resolution, transfer share money separately and keep all statements for the auditor.

What if the bank rejects or delays the application?

Banks may decline accounts where KYC documents conflict, the registered office cannot be verified, or beneficial owners are unclear. Ask for the specific reason, fix the mismatch (often a name spelling or address difference) and reapply, or approach another bank. Avoid routing company receipts through a director's personal account meanwhile, because it complicates GST, income tax and audit and blurs the separation between the company and its founders.

Timeline after incorporation

A practical order of work for the first few weeks helps you avoid missing statutory deadlines while the bank completes KYC. Bank activation times vary, so start the application in the first week after the certificate arrives.

Step by step

1. 1Pass a board resolution

   Approve the bank, account type and authorised signatories.

2. 2Collect company documents

   Assemble COI, PAN, MoA, AoA and office proof.

3. 3Gather signatory KYC

   Collect PAN, ID and address proof for each signatory.

4. 4Apply

   Submit through the bank's portal, a branch or the SPICe+ referral.

5. 5Complete KYC

   Finish video KYC or in-person verification and the beneficial owner declaration.

6. 6Deposit subscription money

   Each subscriber transfers share money from their own account.

7. 7File INC-20A

   Attach the bank statement and file within 180 days.