How to open a Business Account for Start-Ups?
Start - ups form an important part of the business ecosystem. These businesses seek to solve problems in the Indian marketplace and have received regulatory attention and help to expand operations. The country’s banking sector has also woken up to this new business vertical by extending facilities.
One of the most important requirements for a start - up to operate is to have a feature-rich Business Account for their banking operations.
What is a Business Account?
A Business Account is a specialised Current Account that provides added features. These added features depend from bank to bank but mostly they provide an umbrella of services in one account. The Current Account gains access to the business to other services offered by the bank at discounted rates, access to other services such as marketing, and may network with peers in initiatives led by the bank. Having a custom-tailored Business Account can help a start-up get additional expertise from the bank. A start-up Business Account provides additional resources to a start-up to expand their business.
How to open a Business Account for start-ups:
Opening a Business Account for start-ups is easy. A start-up Business Account can be opened in the following steps:
- Get the start-up registered. It can be a proprietorship, a partnership, or a company registered under the Companies Act. It is best to apply for the required licences and register under other acts, such as GST, Income Tax, Customs, DGFT guidelines etc.
- It is possible to apply for a start-up Business Account online on the chosen bank’s website
- In case the online application doesn’t work, it is possible to apply through the bank’s branch
- Collect the required Know Your Customer (KYC) documents that are required for opening the account
- The bank will process the account opening formalities and open the start-up Business Account
- Once the Business Account is opened, the start-up can take benefit of the other facilities offered by the bank. Some of the common facilities extended to the start-up are professional services at negotiated rates, cheaper access to credit, zero balance account facility, waiver of charges on Debit Cards, cheaper access to foreign exchange etc.
HDFC Bank offers SmartUp Accounts for start-ups that provides advisory services, consultancy services, co-working spaces, logistics solutions for the start-up. HDFC Bank also provides cash management systems, access to the SmartBuy marketplace, digital payment support, bulk payments, access to PayZapp for business, access to the Smart-Up portal, and other features that make the Business Account an excellent choice for start-ups.
Read more on how to make your SmartUp work here.
Want to open a Business Account for your start up? Click here to get started.
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.