How to open a current account for a sole proprietor? A sole proprietor is the owner of the business. No matter what the business is, freelancing job, shop, or other, there is only one owner who owns a business and manages all activities. Such businesses are known as Sole proprietorship firms. A current account opened by a sole proprietor for their business is known as a ‘sole proprietorship current account.’
Opening a current account for a sole prop company is crucial because it gives you complete control of your finances and business operations. It also helps you to carry out several financial transactions without any hassles.
This account is either opened with the name of the owner of the name of the business. But before the approach to the bank, it is important to consider some things.
This post will cover such things that you need to consider before opening your sole prop current account.
1. Bank accessibility
It is easy for you to carry the financial transactions with your current account if the bank is close and accessible to you. Before opening your sole prop current account, you should check whether the bank branch is near your location and whether they have an online bank application or not to ensure your accessibility to perform financial activities.
2. Services offered
It is suggested to research and make a list of your banking needs like cheque encashment, NEFT, issues of demand drafts, etc. it is best if you discuss with the banker how you want to meet your needs or what services you want to get with your sole prop current online account.
3. Digital or banking platform
In the digital world today, banking for people is at their fingertips and gives them a good sense of technology. Banks also provide mobile banking or Internet banking facilities. If you have a mobile bank app, then you can easily manage your financial activities with the account. So before opening the sole prop current account, choose a bank that provides you with online and mobile banking facilities.
Before opening the sole prop current account, it is suggested to get complete information on minimum monthly balance requirements. Moreover, you should know about the penalty for non-maintenance of balance, fees on deposits and withdrawals, charges on SMS alerts, etc.
Documents you need to open your sole prop current account
According to KYC guidelines, banks need to check your necessary documents before opening your current account
- PAN card
- Voter ID
- Driving license
- Aadhar card
- Identification letters that are issued by local, central, or state authorities are subjected to banker satisfaction.
To verify your address, the identity proofs you carry also prove your address. You should also submit your utility bills for the last 3 months to prove the address where your business is
While opening the sole prop current account, ensure to consider all the above things, and carry all documents to open your current immediately by bank website only.