An entrepreneur thinks about the need to open a bank account for business at the stage of developing a business plan. A current account is one of the main financial instruments, without which some mandatory business processes become impossible and useful banking services are not available. How can an enterprise or entrepreneur open such an account? In this article, we will consider this issue in detail.
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Settlement and cash services
The current account is closely related to this concept. This service is provided by banks on a fee basis in accordance with the tariff chosen by the client. This includes opening an account and conducting incoming and outgoing transactions on it, as well as depositing and withdrawing cash through the cash desk of the bank and the ATM network.
Also, the bank can offer you remote banking services as part of this service: access to the funds in the account and manage them remotely online through the Internet bank and mobile application. This innovation will save you a lot of time. The tariff plan and terms of service in each bank are different.
Why does a business need a bank account?
This is necessary for the business to carry out settlement transactions, because according to the law, all settlements of the organization with customers, suppliers and contractors in excess of 100,000 rubles must be carried out only through the settlement account.
This condition is part of the policy to combat the shadow circulation of funds and tax evasion. This requirement applies to all legal entities, regardless of the legal form, as well as to individual entrepreneurs. This condition is governed by the laws and regulations of each individual jurisdiction.
Settlement and cash services will open new opportunities for your business:
- increase the base of counterparties;
- the company will be able to participate in public procurement (tenders);
- you can connect the acquiring service (acceptance of non-cash payments);
- automate payroll and other payments to employees;
- use different types of loans.
By opening an account for business and drawing up an agreement for its maintenance, the client of a banking institution also gets access to international transactions and currency control services.
The benefits of having banking services are as follows:
- the account holder can work with money in real time, instantly making the necessary transfers and payments;
- the process of interaction with all counterparties becomes much easier;
- the process of paying taxes, duties and contributions to funds also becomes elementary;
- optimization of the work of the personnel department and accounting department,
- access to banking services and products, including loans, is becoming easier.
The price for opening an account depends on the tariff and service package selected by the entrepreneur or company according to their needs and features of work.
How to open an account?
First you need to choose the bank that you like best. There are many criteria for choosing a bank, but the reliability of a financial institution and the flexibility of the proposed tariff plan have remained basic for most companies and individual entrepreneurs for many years. The selection criteria can be given in the form of the following list.
Before opening your account with the selected bank, you should carefully study all the information about it: the availability of a license, reputation, customer and partner reviews, and the availability of government support. As a rule, all this data can be found in the public domain on the Internet.
2. Cost of services
Mostly in banks, opening an account is a free service. The price for the service of its maintenance already varies depending on the banking institution itself and the selected service package. Therefore, in the process of opening an account, you will also need to decide on the services you need.
The cost of the tariff depends on the number of transactions included in it and the commission for payments and transactions in excess of the established limit. Operations with individuals and legal entities are charged differently. The cost of the tariff is affected by the deposit and withdrawal of cash. If an individual entrepreneur or an enterprise receives most of the revenue from clients in cash, then it is important to pay attention to the limit established within the framework of the tariff and to the amount of the commission that is set for depositing money into the account.
Beginning entrepreneurs and small companies are often offered special starter packages, in which opening and maintenance are provided at a discount.
3. Business cards
A bank employee may offer to issue you a plastic or virtual business card. It will allow you to quickly and easily manage company funds:
- pay for hospitality expenses;
- withdraw cash and deposit proceeds;
- pay travel expenses;
- purchase goods and services for business, as well as pay for the services of contractors;
- an individual entrepreneur also has the right to use a business card for personal purposes.
Commissions for transactions and limits on the card in different banks may differ, and some banks also have a cashback service with certain percentages for various purchases.
Many banks issue business cards free of charge to customers who have opened a current account with a package of services. It is possible to issue virtual and plastic cards for one account for the manager and for employees in any required quantity with the possibility of setting personal limits on transactions.
4. Personal account and application.
The world of technology is developing rapidly and today, online banking is available to every client of any bank. Such banking or a mobile application will allow you to easily, in just a couple of clicks, open a second and subsequent current account, apply for a loan, connect useful business services and much more without visiting the bank.
How to open a bank account: step by step instructions
To get started, you should contact the bank and find out what documents you will need for this and collect them. Please note that the required documents for individual entrepreneurs and legal entities will differ. The standard list of documents includes:
- certificate of state registration;
- confirmation of tax registration in the region;
- an extract from the register of enterprises;
- Identity card of an individual entrepreneur;
- a card that certifies the signature of the head, and a sample seal.
If necessary, the bank may ask for additional documentation or to correct the list.
For legal entities, the package of documents looks like this:
- confirmation of registration with the regulator of the jurisdiction and establishment of the company;
- constituent documents;
- documentary evidence of the presence of a legal address (a lease agreement for premises, a certificate of ownership of real estate);
- identification card of the head (director);
- issued an order for the appointment of a director;
- a card with samples of the signature of the head of the enterprise and a sample seal.
The procedure for opening a current account for business is quite simple. You can simply leave an application online on the website of your bank, consult with a bank employee by phone and sign documents without visiting the office. The list of required documents can also be clarified with a bank employee.
Why can a bank refuse to open an account?
In some cases, the bank has every right to refuse to open an account for you. This can happen due to lack of documents or due to giving false information. You may also be denied in the following cases:
- your business is not located at the address of legal registration;
- your company is registered at a mass legal address;
- the head of the LLC or individual entrepreneur is on the bank’s and state black list;
- you have been summoned to court many times;
- head of the enterprise or individual entrepreneur is recognized as incapable.
- bank’s security service has doubts about some information, you will be asked to provide additional information.
Seek professional help from our company. Our experts are ready to comprehensively help you and accompany you at every stage of this process.