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Home › Services › Document Guides › Current Account Documentation

A bank cannot look at your business — it can only read the paper that says who you are

With a personal account there is a person, and the bank can satisfy itself about a person. A business is not a thing anybody can look at. It is a structure, and a structure exists only in documents: one that says it exists, one that says what it does, one that says who is behind it, and one that says which of those people may speak for it. Every requirement in this subject, and every frustrating afternoon in it, comes out of that. Which also explains the thing that actually goes wrong, and it is almost never what businesses expect. The entity’s own papers are not the problem — they exist, somebody can find them, and they say what they say. The people are the problem, because the people change and the paper does not follow them. A partner leaves. A director is replaced. An office-bearer’s term ends. And the bank’s record of who may operate the account stays exactly as it was on the morning the account was opened, because nothing that happens inside a business reaches its bank by itself. That gap is quiet, it is universal, and it surfaces at the worst possible times — in the middle of a tender, at a facility review, or on the day somebody who left two years ago is still on record as able to sign.

From ₹1,499 2 – 7 days The people, not the papers Nothing payable in advance
What does a bank actually need for a business account, and what usually holds it up?Four things, in substance, whatever the entity: proof that it exists, proof of what it does and from where, proof of who the people behind it are, and a document saying which of those people may operate the account and in what combination. The exact papers that satisfy each differ by bank and by whether you are a firm, a company or a society, and they change from time to time — so the first move is to ask the branch for its own current list for your kind of entity, rather than assembling against anything published, including this page, which deliberately prints none. That request also saves the second journey, which is what most businesses actually lose in this exercise. What holds things up, though, is rarely on that list. It is the fourth item, and specifically the people in it. Almost nobody struggles to produce the entity’s constituting documents; a great many businesses discover, at the counter, that their own internal position is not as clear as they assumed. The deed is twenty years old and does not address who may deal with a bank. The resolution everybody remembers passing was never written up. The society’s office-bearers changed at the last election and nothing was recorded in a form anybody outside the committee could read. The bank is not being difficult when it asks for these; it genuinely cannot act without them, because it is being asked to let somebody move a structure’s money and the only thing that tells it who may do that is your own paper. So read your constitution before the bank does. If it does not say clearly who may operate an account and how, fix that first — it is a short exercise now and an awkward one in the middle of an application. Then take the operating decision deliberately rather than by default: one signatory is quick and concentrates risk, two is safer and stops on the day one of them is unreachable, and most businesses choose the first at opening without anybody framing it as a choice. And build in the maintenance from day one, because this is the part that costs real money later. Nothing inside your business reaches the bank by itself. A partner leaving, a director changing, a new address, a new name, an office-bearer elected — each of those is a separate written step towards the bank, with its own acknowledgement, and none of them happens because it happened internally. Keep a note of who is on the mandate, review it once a year and after every change in the people, and ask the bank once for a list of everything live on the account. That last request routinely turns up a standing instruction for something cancelled years ago and a card in the name of somebody who has left.

What the bank is actually looking at

Four questions, and every document on any requirement list is answering one of them.

Does this entity exist? Whatever constitutes it — the deed, the incorporation documents, the registration of the society.

What does it do, and from where? The business itself, and the premises it operates from.

Who is behind it? The individuals — partners, directors, office-bearers — identified as individuals, because ultimately a structure is made of people.

Who may speak for it to this bank? The narrowest and most important question, and the one that causes the trouble.

Sorting a requirement list into those four buckets is worth doing, because it turns an intimidating page into four small tasks, and because it shows you immediately which bucket you are weak in. In our experience it is almost always the fourth.

The papers are stable; the people are not

The sentence this whole page is built on, and it is worth sitting with because it is counter-intuitive.

A constituting document is written once and then sits still. Ten years later it says exactly what it said. It is findable, it is unambiguous about what it covers, and producing it for a bank is an errand rather than a project.

The people are the opposite. Partners join and leave. Directors change. Committees turn over on a cycle. Somebody emigrates, somebody retires, somebody falls out. Each of those is recorded somewhere inside the business — and none of it reaches the bank, because there is no mechanism by which it would.

So the bank’s picture of your business is a photograph taken on the day you opened the account, updated only when somebody walked in with a paper and asked for it to be updated. In a business of any age, that photograph is usually wrong in at least one particular.

Which makes the maintenance half of this page more valuable than the opening half, even though the opening half is what people come looking for.

Read your own constitution before the bank does

The single highest-value hour in this subject, and hardly anybody spends it.

Take out whatever constitutes your business and look for one thing: does it say who may deal with a bank, and how?

In a great many firms the answer is no. The deed was drawn when the business started, covering profit shares and duties, and the question of banking either was not addressed or was addressed in a sentence that has not aged well — naming a person who left, or a way of working nobody follows.

In companies the equivalent gap is a resolution everybody remembers passing and nobody wrote up properly, or one that authorised an account at a bank the company no longer uses.

In societies and associations it is usually the record of who currently holds office, which exists in minutes somewhere and not in a form anybody outside the committee can read.

None of those is hard to fix and all of them are much easier to fix now than at a counter. A firm’s founding document is what our partnership deed service handles; a company’s authority is our board resolution service; and where the understandings among the people behind a company need setting down properly, that is our shareholders agreement service.

Who may sign, and who decides that

A distinction worth being precise about, because businesses regularly get it backwards.

The bank does not decide who may sign. Your own constitution decides, and the bank reads what it says and records it. If your document is clear, the bank follows it. If your document is vague, the bank cannot resolve the vagueness for you — it will ask you to, and until you do, nothing moves.

So a request for clarity from a branch is not obstruction. It is the bank saying, accurately, that it has been asked to let somebody move a structure’s money and the only thing that tells it who may do that is your paper.

Two practical consequences. Write the authority for the bank’s purpose, not in general terms — a resolution that says the company may open accounts is weaker than one that names the bank, the account and the people, and says in what combination they may operate it.

And name roles as well as people where you can, so that the document survives one person leaving. How far that is possible depends on your structure, and it is worth asking the question when the document is being drawn.

One signatory or two

A real decision with real costs on both sides, and it is almost always made by default.

One signatory is fast. Nobody waits for anybody. It also concentrates the risk in a single person and a single set of credentials, and it removes the natural check that a second pair of eyes provides.

Two signatories is safer and slower, and the slowness is not the real cost. The real cost is the day one of them is unreachable — travelling, unwell, estranged, gone — and the account cannot be operated at all. Businesses that chose two for safety sometimes discover they chose paralysis.

Where a bank offers it, a threshold is the useful middle: one signature up to a value, two above it. Ask whether that is available rather than assuming it is not, because it frequently is and it is rarely volunteered.

Whatever you choose, choose it out loud, with the people it affects in the room, and write down why. A year later somebody will ask why the arrangement is what it is, and “that is how it was set up” is not an answer that helps anyone.

And build in the failure case: what happens if a signatory becomes unavailable? Knowing the answer before it is needed is the difference between an inconvenience and a fortnight.

The one-person business, which is its own case

Worth separating out, because the advice everywhere else on this page assumes several people and a great many businesses are one.

Where the business and the person are not legally distinct, the bank is dealing with a person trading under a name, and the documents reflect that: the individual’s own identity and address, plus whatever shows that the business exists and that this person runs it.

Two things matter more here than anywhere else, precisely because there is nobody else in the room.

Nobody is checking anybody. Every safeguard described above — a second signature, a value threshold, somebody noticing an unusual instruction — is absent by construction. Which makes the ordinary disciplines heavier: a separate account rather than a mixed one, a record behind every movement, and credentials that genuinely nobody else has.

Nobody else can act if you cannot. Illness, travel, an accident — and the business account simply stops. That is a real operational risk and it has answers worth asking the bank about in advance rather than in the week it happens. Whatever arrangement you make, make it deliberately and keep it no wider than it needs to be.

And if the business grows into something with partners or a company behind it, the account does not come along automatically — a different entity is a different customer, and that is a new account rather than a renamed one.

The mandate is not the resolution

Two documents, doing two different jobs, and conflating them is the commonest reason a business believes it has changed something and finds it has not.

The resolution, or the deed provision, is your internal decision. It records what the business decided and who it authorised.

The mandate is the bank’s instruction. It is what the bank actually operates on — the record in its own system of who may do what.

Passing a resolution does not change the mandate. Somebody has to take the resolution to the bank and have the mandate updated, and then the bank acts on the new position. Until that happens, the bank continues, entirely correctly, to do what it was told the last time somebody told it something.

So whenever anything changes internally, the question to ask is not “have we passed the resolution?” It is “has the mandate been updated, and do we have the acknowledgement?”

When somebody leaves

The most common failure in this subject, and it is never a failure of intent. It is simply a step that belongs to nobody.

Somebody leaves the firm, resigns from the board, or reaches the end of a term. Internally this is handled — there is a document, there is an understanding, everyone knows. At the bank, nothing has happened at all.

So the sequence, and it should run in the same week rather than the same quarter. Write to the bank with the internal document that records the change. Have the mandate updated and get written confirmation of the new position. Deal with what was attached to that person — a card, access credentials, a cheque book in their custody. And check the list afterwards rather than assuming the instruction was carried out in full.

That last step matters more than it sounds: banks process what they are asked to process, and a request that named one account while the person was on three is a request half completed.

Where the departure is not amicable, do all of this faster rather than more carefully. The documentation is the same; the urgency is not.

When somebody joins

The mirror image, and it fails differently: not forgotten, but done informally.

A new partner or director starts operating the account in practice long before the bank has been told, because somebody with authority is passing them the instrument or the credentials. That is understandable and it is a genuinely bad idea, because the bank’s record then says one thing and reality says another, and every transaction in between sits in that gap.

The fix is ordinary: the internal document, then the bank, then the mandate updated, then the new person’s own identification on record as the bank requires — and only then do they operate the account.

Two additions worth making at the same time, because you are already there. Remove anybody who should no longer be on the list, since the same visit can do both. And ask for the current mandate as recorded, so you leave with the bank’s version rather than your belief about it.

A change of name

Not one form. A set of them, in an order, and the order matters.

The internal change first — whatever makes the new name the entity’s actual name.

Then the bank, with that document, and get the account renamed rather than merely noted.

Then everything attached to the account: the mandate, instruments in the old name, cheque books, anything printed, and every mandate somebody else holds against you.

That third stage is where businesses stop, because the account itself now looks correct. The pieces that get missed are the ones other people rely on — a customer paying into a name that no longer matches, a supplier’s standing instruction, a mandate held by somebody who has not been told.

For the records half of a change like this, see our bank KYC guide; and our name change guide explains the sequencing principle that governs here as well — certain records will not take an amendment until others have already been amended.

A change of premises

Dull, routine, and the root of a surprising share of what goes wrong afterwards.

The address on the bank’s record is where notices reach you, and a business the bank cannot reach is a business that finds out about problems late — after a restriction, after a deadline, after somebody else has noticed.

So: tell the bank in writing, get an acknowledgement, and update it wherever else it appears rather than in the one place you happened to be dealing with. If the new premises have to be evidenced, our rent agreement guide explains what separates a tenancy paper an institution will take from one that simply exists on a page.

And if the business operates from more than one place, be clear which address is the one for correspondence, rather than letting different institutions hold different ones. That inconsistency is invisible until the month it matters.

Societies, associations and the turnover problem

The same structure as everything above, with one difficulty that is specific and predictable: office-bearers change on a cycle, and the cycle does not know about the bank.

What the bank generally wants is the rules or bye-laws, the record of who currently holds office and how they came to, and a resolution authorising the account and naming who may operate it.

The difficulty is that each of those is produced by a committee for a committee. Minutes are written for members, not for a bank clerk who has never met anybody. So the practical instruction is: produce the record in a form somebody outside the association can read — who holds which office, from when, on what authority, signed by whoever your rules say signs such things.

And build the bank into the handover. Every time office-bearers change, the bank visit is part of the handover, not an errand for later. An association whose account is operated by people the bank has never been told about is a problem waiting for an audit, and it lands on whoever is in office when it surfaces rather than on whoever created it.

One more thing worth saying plainly to committees: this is exactly the kind of task that gets deferred because it is nobody’s portfolio. Give it to a named office rather than to goodwill.

One account or several

Two different questions that get asked as one.

Separate entities need separate accounts. That is not a preference; it follows from who the customer is. Two businesses cannot share an account any more than two people can share an identity.

One entity with several activities is a different question, and it is a bookkeeping decision rather than a legal one. The honest trade-off: separate accounts give you clarity, and every account is another record to keep current, another mandate to review, another thing to close properly one day.

Our view, offered as documentation rather than advice: separate where the separation answers a question somebody will actually ask — a project, a client’s money, a branch that has to account for itself — and resist separating out of tidiness alone.

And whatever you decide, write down what each account is for, on one sheet with the rest. An account whose purpose nobody can state is an account nobody will close and nobody will reconcile.

Running a business through a personal account

Extremely common at the start, and the difficulty is precisely that it works for a while.

The practical problems are ordinary rather than dramatic, and they all arrive later. Money that cannot be cleanly attributed to the business. A record that will not answer a question from a lender, a buyer or a partner. A history that is awkward to explain at exactly the moment you want it to be simple.

What we will not do is tell you it is a tax problem or a compliance problem, because we are not accountants and that is not our advice to give. Ask somebody who is, about your own position.

What we will say is the documentary half: the longer it runs, the more work it is to unwind, because separating a mingled history is harder than keeping two records apart from the beginning. If you are early enough that it is a few months, it is an afternoon. If it is four years, it is a project.

And if you are moving to a proper account now, do not simply start using the new one — move the arrangements: the mandates, the standing instructions, the people paying you, and the people you pay. A half-migrated position is worse than either.

Ask what is live on the account

A single request, made once, that routinely surprises businesses more than anything else on this page.

Ask the bank, in writing, for a list of everything currently live on the account: standing instructions, mandates, cards issued and to whom, facilities, instruments outstanding, and any authority recorded.

What comes back, in a business of a few years, generally includes at least one of the following. A debit running for a service cancelled long ago. A card in the name of somebody who left. A mandate given to a supplier the business no longer uses. An authority recorded for a person nobody would authorise today.

None of that is anybody’s fault. It accumulates because each item was set up deliberately and none of them was ever anybody’s job to take down. The list exists; nobody has ever asked for it.

Do it once, deal with what it turns up, and then repeat it at the annual review. Where an instrument is outstanding, our bank guarantee guide covers the closing sequence that actually releases what is tied up.

Who holds what

Not a question about trust, and it is worth saying that at the start because people hear it as one. It is a question about being able to answer something later.

Cheque books, cards, tokens, credentials. In small businesses these frequently live in a drawer everybody can reach, which works perfectly until the day somebody needs to know who had access to what, and then nobody can say.

So: a named custodian, and a note of who holds what, reviewed when it changes. Two lines on the same sheet as everything else.

And the rule that applies to every business of every size: nobody shares credentials. Not to save time, not because somebody is travelling, not because it is quicker. Where a second person needs to operate, the answer is a mandate, not a password. Our bank KYC guide sets out why an instruction arriving by any route other than your own is the shape almost all fraud now takes, and businesses are targeted at least as often as individuals.

Where something has gone wrong in that direction, speed matters more than certainty — our cyber crime complaint service prepares the report, and it belongs in hours rather than days.

Movements and the record behind them

Written carefully, because the useful part here is documentary and the rest is not ours.

There are requirements about how money moves through a business account, they differ by situation, and they change. Ask your bank about the operating position and your accountant about the rest; this page gives no figures and no rules for exactly that reason.

What is squarely documentary, and is the part businesses get wrong: whatever moves, keep the record of why. A transaction with a document behind it is a fact. The same transaction without one is a question, and questions surface in the least convenient places — a periodic verification, a facility review, a buyer’s inspection, a dispute with somebody who was once a partner.

The habit that costs nothing: a reference on every transfer that means something six months later, and the underlying document filed where the transaction can find it. It sounds like bookkeeping advice and it is really about being able to explain your own account.

Facilities are a separate arrangement

Discussed in the same meeting, documented separately, and reviewed on their own cycle — and businesses routinely treat them as features of the account.

An overdraft, a working capital line, an instrument limit: each has its own papers, its own security, its own conditions and its own review. The account is the relationship; the facility is an arrangement inside it.

Two consequences worth holding. What is documented for the facility can be wider than what you expected — including who has undertaken what personally, which is worth asking about explicitly rather than discovering. And a facility review is a moment when everything else gets looked at: the signatory list, the constitution, the verification position. A business whose records are current walks through it; one whose records are not spends a month on it.

Where instruments are issued against a limit, our bank guarantee guide covers what they tie up and the closing sequence that releases it — which is the single most common piece of quietly locked working capital we see.

Periodic verification, for a business

The same exercise every account is subject to, and it lands harder on a business.

For an individual, a restriction is inconvenient. For a business, payments fail outward as well as inward, which means other people find out — a supplier whose payment bounced, a salary that did not arrive, a customer whose mandate failed. The reputational cost arrives before the administrative one is even understood.

What makes it worse is the shape of the request: it goes to the address and the contact on record, which for a business is frequently a person who has left or a premises vacated two moves ago.

Which puts the remedy exactly where the rest of this page puts it: hold the contacts and the roster current, and when a verification request lands, treat it as something with a deadline rather than as filing. Our bank KYC guide covers the exercise itself, including the version of it that is not a request at all.

The one sheet that answers most questions

Everything this page asks you to keep fits on a single page, and a business that has it can answer in a minute what otherwise takes an afternoon of asking around.

At the top: the entity as its constituting document names it, and where that document lives.

Then, per account: bank and branch, what the account is for, who is on the mandate and in what combination, what recurring payments leave from it, and what facilities or instruments are attached.

Then two lines that are not about accounts at all: who holds which cheque book, card or token, and when this sheet was last checked.

Keep it where more than one person can find it, and keep it with the copies — the constituting document, the authority as passed, the mandate as recorded by the bank, and the account particulars.

The reason this earns its place is not tidiness. It is that every difficult conversation in this subject — a verification, a facility review, a partner asking a question, somebody taking over a role — begins by asking for exactly what is on that sheet, and a business that cannot produce it spends the first week of each of those reconstructing it.

When somebody takes over the role

The situation this page is quietly written for, because it is where all the accumulated gaps arrive at once.

A new partner takes on the finances. A treasurer succeeds another. A family business passes to the next generation. Whoever it is inherits a set of arrangements nobody has written down, made by people who are no longer explaining them.

Four things to hand over, and they are the same four whatever the entity. The one sheet above. The list from the bank of what is live on the account, obtained fresh rather than passed on. The mandate as the bank currently records it, not as anybody believes it to be. And a note of what is known to be out of date, honestly — because the person leaving usually knows, and the person arriving will otherwise find out the expensive way.

And one instruction for whoever is arriving: do the annual review in your first month rather than your first year. It is the cheapest possible way to find out what you have actually inherited, and it is far easier to raise a gap as something you discovered than as something you allowed to continue.

The twenty minutes a year

Four questions, once a year and after any change in the people. It is the whole maintenance programme.

Is the signatory list right? Not what you believe — what the bank has recorded. Ask for it.

Is the address and contact right? Including the person whose number is on the record.

Is everything live on the account still wanted? The list from the section above.

Is there an account that should be closed? There usually is.

Give it to a named person and put it in the same month every year, next to something that already happens. Reviews attached to a date get done; reviews attached to good intentions do not.

If the bank will not proceed

Usually a document, rarely you, and almost always solvable in writing.

Ask two things and ask for both in writing: what is the reason, and what would satisfy it. Then say plainly what you can supply instead of whatever you cannot. A written exchange resolves in days what repeated counter visits stretch over weeks, because it puts the question in front of somebody who has to answer it rather than somebody who is between customers.

Where the sticking point is your own internal document — a deed that does not address banking, a resolution that does not exist — the answer is to fix that rather than to argue, and it is faster than it sounds.

Still stuck, and there is a complaints channel inside the bank that charges nothing; working it is covered in our banking complaint guide, and the step above it is our RBI complaint assistance service. Taking your business to a different bank is a perfectly respectable answer too, and now and then the right one.

Businesses accumulate these more than individuals do — an account opened for one project, one client, one branch, one scheme — and each one that falls silent takes a mandate or a credit with it. The revival is heavier for an entity than for a person, because the authority that can ask for it has usually changed since. Our dormant account guide sets out what is involved.

Closing a business account

The mirror of opening, and it needs the same authority that opened it — which businesses forget, and then find that the person who can close it is no longer around to.

Decide it properly, with whatever internal authority your constitution requires, and record the decision.

Move the balance and know where it went.

Cancel every mandate and standing instruction, having first asked for the list of what is running rather than relying on memory.

Return what the bank asks for and have that recorded.

Obtain it on paper from the bank that the account stands closed with no balance of obligation either way.

An abandoned business account is worse than an abandoned personal one, because the entity outlives the people who remember it. Somebody inherits the question years later with nobody left to ask, and our dormant account reactivation service exists largely because of it.

Six failures, every one of them about people

All about people, none about paper.

A signatory who left is still on record, because leaving the business is not the same event as leaving the bank’s file.

The resolution was passed and the mandate was never updated, so the bank kept doing what it was last told.

The constitution never said who may deal with a bank, and nobody found out until a counter asked.

The notice went to an address two moves ago, and the restriction arrived before the letter did.

Nobody ever asked what was live on the account, so a debit and a card outlived their reasons.

The account was abandoned rather than closed, and surfaced years later as somebody else’s problem.

What our part looks like

We start inside your business rather than at the bank, because that is where the delays actually originate. We read your constituting document and tell you whether it says who may deal with a bank — and in a surprising share of cases the honest answer is that it does not, which is a short fix now and an expensive one at a counter.

Then we prepare the authority properly: named to the bank, named to the account, naming the people and the combination, in a form the bank can act on rather than a general statement of intent.

We get the branch’s own current requirement for your kind of entity, reconcile the list of people with reality before anything is submitted — which is the step that catches the departed partner — and assemble the file against that list rather than a general one.

And we set up the maintenance, because it is what actually saves money: the mandate as recorded, the list of what is live on the account, and the twenty-minute annual review with a named owner. Where changes come later — somebody leaves, somebody joins, a name or an address changes — we run the written step to the bank that your internal decision does not run by itself.

Where we stop

Recommending a bank or a product is not something this firm does. Which institution, which account type, what to keep in it, which facility to take — those sit outside our work entirely, and parts of that field are licensed work we are not licensed for.

We are not accountants and this is not tax advice. How money should move through your business, what is deductible, how to treat anything — ask somebody qualified, about your own position.

A one-time code, a PIN or a password is never requested here, and there is no circumstance in which we would want one. If a caller invokes our name and asks for any of them, that caller is not from this firm.

Operating the account stays with you. Documents are our end of it, along with telling you where each one goes.

We do not prepare an authority wider than the task. If the purpose is one account at one bank, that is what the document should say.

We do not put a person on a mandate on somebody’s say-so. It goes on the strength of the internal document that authorises it, or it does not go.

What it costs, and what it is really for

Our fee for this work starts at ₹1,499, the usual span is 2 – 7 days, we tell you the total before we start, and nothing is payable in advance. Where an internal document has to be fixed first — an old deed, a resolution that was never written up — that has its own timeline and you hear about it in the first conversation rather than the last.

What is actually being bought is not access to a bank, which needs no help. It is the hour spent inside your own papers before anybody goes anywhere: the constitution read, the authority written so a bank can act on it, and the list of people reconciled with who is actually there.

And then the part that keeps paying: the maintenance nobody owns. Where a business has been running a few years, the single most useful thing we do is the written request for what is live on the account — because that list, in our experience, is never what anybody expected.

The honest note this page owes: every word of this you can do yourselves. Read your own deed. Write to the branch and ask what it needs for your kind of entity. Ask for the mandate as recorded and the list of what is running. Put twenty minutes in the diary once a year with somebody’s name on it. If this page produces nothing but that diary entry, it has done its job.

Questions

Business accounts — what businesses ask

What makes a business account different from a personal one?
Who the customer is. A personal account belongs to a person the bank can look at. A business account belongs to a structure — a firm, a company, a society — and the bank cannot look at a structure. It can only read the documents that say what the structure is and who may speak for it. That single difference explains every requirement, every delay and every awkward afternoon in this subject.
What will the bank want from us?
Documents proving the entity exists, documents proving what it does and where, documents proving who the people behind it are, and a document saying which of those people may operate the account and in what combination. Which particular papers answer each of those is not the same at two banks, is not the same for a firm and a company, and does not stay the same over time — so put the question to your branch for your own entity type instead of assembling against anything in print, this page included, which carries no such list on purpose.
What actually goes wrong in practice?
Almost never the entity’s papers. They exist and they say what they say. The failure is always on the roster of people: someone who exited the firm, a board seat that turned over, a committee post filled at an election two rounds back, an authorised name that nobody ever refreshed. The entity is stable and the people are not, and the bank’s record freezes on the day you opened the account unless somebody tells it otherwise.
Who decides who may sign?
Your own constitution, not the bank. A company acts through a resolution. A firm acts as its deed provides. A society acts through whatever its rules say. The bank reads that document and records what it says. Which means that if the internal document is vague, old or silent, that vagueness becomes the bank’s problem and then yours — our board resolution and partnership deed services deal with getting it right.
Should more than one person be able to sign?
It is a real decision with two real costs, and it should be taken deliberately rather than by default. One signatory is fast and concentrates risk. Two signatories is safer and stops the day one of them is unreachable. Most businesses choose speed at opening and discover the other side of it years later. The useful middle ground, where a bank offers it, is a value threshold — but ask, rather than assuming.
A partner has left. What do we have to do?
Tell the bank, in writing, with whatever internal document records the change, and do it promptly rather than at the next convenient visit. Until you do, the bank’s record still shows them as able to operate the account, because nothing inside your business reaches the bank by itself. This is the single most common gap in this whole subject and it is entirely avoidable.
How quickly does that matter?
More quickly than people assume. An out-of-date signatory list is an ordinary administrative gap on a quiet account and a live problem on one with facilities, instruments or mandates attached. It also surfaces at bad moments — during a tender, a facility review, or a periodic verification — rather than on a slow Tuesday when there is time to fix it.
The business has changed its name. Is that just a form?
It is a set of forms, in an order. The internal change comes first, then the bank, then everything attached to the account — mandates, instruments, anything printed with the old name. Handle only the bank and everything downstream stays wrong, and what slips through is generally whatever some third party is depending on. Our bank KYC guide covers the record side of that.
We have moved premises. Does the bank need to know?
Yes, and not only for post. The address on the record is where notices reach you, and a business that cannot be reached is the root of most restrictions and unpleasant surprises. Tell the bank in writing, get an acknowledgement, and update the same address wherever else it appears rather than in one place. Our rent agreement guide covers making a tenancy document institutions accept, where one is needed as proof.
Do we need a separate account for each business?
If they are separate entities, yes — that is not a choice, it follows from who the customer is. Where it is one entity doing several things, separate accounts are a bookkeeping decision rather than a legal one, and the honest trade-off is clarity against administration: every account is another record to keep current and another thing to close properly one day.
Can we use a personal account for the business instead?
People do, particularly at the start, and it becomes difficult to unwind precisely because it worked for a while. The practical problems are ordinary rather than dramatic: money that cannot be cleanly attributed, a record that will not answer a question from a lender or a buyer, and a mixing that is awkward to explain later. We are not accountants and this is not tax advice — it is simply what we watch businesses spend time undoing.
What is a mandate, and why does it keep coming up?
The instruction that tells the bank who may do what on the account. It is the document that turns your internal decision into something the bank acts on, and it is separate from the resolution or deed that made the decision. People update one and not the other, and then wonder why the bank is still doing what it was told last year.
What should we collect when the account is opened?
The account particulars in writing, copies of every form signed, a copy of the mandate as recorded, the tariff as it stands, and confirmation of the operating instruction. Businesses leave with a chequebook and a welcome folder, and then cannot answer a simple question about their own account two years later.
How often should we review any of this?
Once a year, for twenty minutes, and after any change in the people. Four questions: is the signatory list right, is the address right, is every mandate on the account still wanted, and is there an old account that should be closed. Nothing on that list is difficult and none of it ever becomes urgent until it is.
Something is attached to the account that nobody set up recently.
Very common, and worth an afternoon. Ask the bank for a list of everything live on the account — standing instructions, mandates, cards, facilities. Businesses regularly find a debit running for a service cancelled years ago and a card issued to somebody who left. It is nobody’s fault; it is simply a list nobody has ever asked for.
What happens if we do not respond to the bank’s periodic verification?
Use of the account narrows, step by step — and noticing does not undo it; the narrowing sits there until the work is actually done. For a business that is worse than for an individual, because payments fail outward as well as inward and other people find out. Our bank KYC guide covers what the exercise is and how to keep it from arriving as an ambush.
Does a current account come with a facility?
Not automatically, and the two are separate arrangements with separate documents even when they are discussed in the same meeting. Where a facility, an overdraft or an instrument line is involved, that is its own set of papers, its own security and its own review cycle — our bank guarantee guide covers what instruments issued on your instructions actually tie up.
Who should hold the cheque book and the cards?
Somebody, named, with a record of who has what. The common arrangement in small businesses — a drawer everyone can reach — works until it does not, and the moment it stops working is the moment nobody can say who had access. This is not about trust; it is about being able to answer a question later.
Are there rules about handling cash through the account?
There are requirements, they differ by situation, and they change, so ask your bank and your accountant about your own position rather than working from anything general. The documentary point, which is ours: whatever you do, keep the record of it. Unexplained movements are a problem in exactly the places you would least like a problem — a verification, a facility review, a buyer’s inspection.
Our society or association wants an account. Is it different?
The shape is the same and the documents differ: the rules or bye-laws, the record of who was elected and when, and a resolution authorising the account and naming the operators. The difficulty with associations is turnover — office-bearers change on a cycle, and the bank’s record does not change with them unless somebody carries the paper across each time.
The bank has refused or is asking for something we do not have.
Get both the reason and the requirement down on paper, and state plainly what you are able to produce in its place. Nine times in ten the sticking point is a piece of paper and not the applicant, and correspondence closes in a few days what a run of counter visits drags across a month. If it still does not move, the bank’s own grievance route costs nothing — our banking complaint guide covers using it.
How do we close a business account properly?
In writing, with the same authority that opened it. Move the balance, cancel every mandate and standing instruction, return whatever the bank asks for, and obtain written confirmation that the account is closed and nothing further is due. An abandoned business account is worse than an abandoned personal one, because the entity outlives the people who remember it.
Does any of this connect to our registrations?
Banks generally want to see that the business is what it says it is, and registrations are part of how that is shown. Which ones apply depends entirely on what you do and where — our trade licence, GST registration and shop and establishment registration services deal with those, and they are separate exercises rather than part of opening an account.
What do you actually do for this?
The branch’s live requirement for an entity like yours; your constituting document read to find out whether it genuinely answers the signing question; the internal authority drawn so a bank can work from it; the roster of names checked against who is actually there, before a single page is lodged; the file built; and the yearly review put in place. We do not advise on banks, products or tax.
What will this cost and how long does it take?
This work begins at ₹1,499; we tell you the total before we start, and nothing is payable in advance. Ordinarily it runs 2 – 7 days. If something internal needs putting right first — a deed written decades ago, a resolution that was never actually passed — that runs on a clock of its own, and it comes up in the opening conversation.
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Business banking and the documents behind it

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Read your own constitution first. Then reconcile the people with reality.

We start inside your business rather than at the bank: your constituting document read and, where it is silent about banking, fixed; the authority written so a bank can actually act on it; the branch’s own requirement for your kind of entity obtained; and the list of people reconciled with who is really there before anything is submitted. Then the maintenance nobody owns — the mandate as recorded, the list of what is live on the account, and a twenty-minute annual review with a named owner.

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