2. Company Accounts:
Sole Proprietorship, Partnership Firm Account, Limited Company Account
Sole Proprietorship Concern
Does not enjoy much legal status
This type of account treated as individual
Proprietor normally operates the account
May be operated by authorized person.
In case of death balance of the account paid to the nominee or successor.
Sole Proprietorship Account: (Documents Required)
Valid trade license
Certificate from the chamber of commerce
Tax Identification Number(TIN)
Value Added Tax registration number
- Partnership Account
A partnership is the creation of a contract between persons. Partnership firm is an association of two or more persons called partners who undertake a venture for mutual benefit or to earn profit. Partnership is a voluntary organization.
Considerations to Open Bank Account of Partnership Firm:
To open bank account in the name of the firm.
Written request from all partners.
Mandate, Instructions about operation of the account
Registered partnership deed.
Cheques in the name of the firm must not credited to the personal account of any partner.
Deed of mortgage must be signed by all partners.
Notice of retirement should be given to the banker
Death of a partner may or may not close the firm account.
Insolvency of a partner dissolve the firm
Minor can be a partner with limited liability.
- Joint Stock Company Companies Act 1994
A joint stock company is an artificial person with perpetual entity. A joint stock company is an artificial entity created by law. It has separate existence different from that of the members who created it. This company is not dissolved by death, bankruptcy, or lunacy, of any of its members.
Requirements to Open Account of Joint Stock Company:
Board Resolution particularly mentioning Bank, Branch, nature of account
Certificate of incorporation
Certificate of commencement of business
Balance sheet of the company
Copy of resolution signed by the board of directors.
Mandate from the company.