Introduction

Opening a bank account is a fundamental step for any registered company, including a One Person Company (OPC), to commence business operations. Since an OPC is recognized as a separate legal entity under the Companies Act, 2013, it must maintain a dedicated current account in its registered name for managing financial transactions. The account ensures a clear separation between personal and business finances, enhances credibility, and facilitates compliance with taxation and regulatory norms. This article provides an overview of the essential banking formalities required to open a current account for an OPC in India.

Opening the Account in the Company’s Legal Name

The bank account must be opened in the official name of the OPC, including the mandatory suffix “(OPC) Private Limited”. This helps distinguish the business entity from the individual owner and reinforces the legal identity of the company in all financial dealings.

Timing of Account Opening

Incorporation of an OPC is followed by issuance of the Certificate of Incorporation (COI) and allotted PAN and TAN. These documents are generally available within a few days of registration through the SPICe+ form on the MCA portal. Once received, the company can proceed to open its current account with a bank.

Documents Required by the Bank

To open an OPC current account, the following documents are typically required:

• Certificate of Incorporation issued by the Registrar of Companies
  
• PAN card of the OPC
  
• Memorandum of Association (MOA) and Articles of Association (AOA)
  
• Board resolution authorizing the director to open and operate the bank account
  
• KYC documents of the director (PAN, Aadhaar, passport, etc.)
  
• Address proof of the registered office (rent agreement, utility bill)
  
• Company seal and signatures of the authorized signatory
  

Banks may have slight variations in documentation requirements, but these form the standard set for most financial institutions.

Board Resolution for Account Opening

Even if the OPC has only one director, a board resolution is necessary to formally authorize the opening and operation of the bank account. The resolution typically specifies the name of the bank, the type of account, and the signing authority.

Mandatory Filing Through AGILE-PRO-S

During incorporation, OPCs can apply for a bank account by filing AGILE-PRO-S—a part of the integrated SPICe+ form. This form allows for the selection of a preferred bank (e.g., ICICI, SBI, HDFC, etc.) and speeds up the account opening process post-incorporation. Once the incorporation is complete, the selected bank contacts the OPC to complete KYC and open the account.

Initial Capital Deposit Requirement

Most banks require a minimum deposit to activate the current account. The amount depends on the authorized share capital and the bank’s internal policy. The shareholder may need to transfer the paid-up capital into the account to commence transactions, especially if required for compliance.

Purpose and Benefits of a Dedicated Current Account

Opening a separate business account for an OPC ensures:

• Professional financial management
  
• Easy tracking of business income and expenses
  
• Credibility with clients and vendors
  
• Required banking history for loans and funding
  
• Smooth compliance with GST, TDS, and income tax filing
  

It also helps avoid the mixing of personal and business funds, which is vital for maintaining the corporate veil.

Post-Opening Responsibilities

Once the account is operational, the OPC must:

• Maintain minimum balance as per bank policy
  
• Update KYC periodically
  
• File statutory returns related to banking transactions if applicable
  
• Ensure proper reconciliation and record-keeping for audit purposes
  

Conclusion

Opening a current account for a One Person Company is an essential step in establishing a professional and legally compliant business. With clear banking formalities, standardized documentation, and integrated application through SPICe+, the process has become streamlined and efficient. A properly maintained business account not only fulfills regulatory requirements but also positions the OPC for credibility, growth, and long-term financial discipline. For individual entrepreneurs, this marks the transition from informal operations to a recognized and structured business entity.

Hashtags

#BankingBasics #OPCAccount #AccountOpening #BankingFormalities #SmallBusinessBanking #EntrepreneurTips #BusinessSetup #FinancialLiteracy #StartupFinance #OnePersonCompany #BankingGuide #BusinessBanking #FinancialPlanning #OPCRegistration #BusinessEssentials #Entrepreneurship #FinanceTips #BankingServices #BusinessGrowth #StartupJourney