Start-ups need a few essential things in place to function well – a solid business plan, funding, and a reliable business banking account. Business banking services ensure that all transactions – big and small – go smoothly and all your other banking needs are met. Since a business banking account is designed specifically with the needs of a start-up in mind, having one for your business can really increase the efficiency and convenience of several financial functions. Let’s take a look at how you can open a business banking account to do so:
- First things first, you need to get your start-up registered. This is essentially to have proof of business and make the process smoother. It can be registered as any business type – sole proprietorship, partnership, etc. As you do this, also make sure to get all the licenses required by your business in place such as GST, customs, and more.
- You can then look at different business banking accounts and narrow down a bank based on the features and benefits offered. You should check for benefits such as zero-balance accounts, access to overdraft facility, access to foreign exchange at cheaper rates, doorstep banking facility, etc.
- Once you have narrowed down on your preferred bank, you can look at applying for the business banking account online. The online application process is usually quicker and more convenient. Alternatively, you could also visit a branch of the bank to apply for the account offline.
- You will need to provide Know Your Customer (KYC) documents along with documentation for proof of business and income.
- After your business banking account is opened, you can start using it for the benefit of your start-up – whether that is making use of the overdraft facility to meet your working capital needs or trade services.
Opening a business banking account will also help you with wealth management. It will allow you to maintain separate records of your personal and business accounts, which is beneficial in the long run. This will enable you to budget for your start-up effectively and also prepare your business’ final accounts and file taxes a lot more conveniently. In addition to all these benefits, having a business account in place looks more professional when you deal with clients and other stakeholders, including employees and suppliers.
The best banks today provide a simple and streamlined process of opening a bank account online for start-ups. This is essential not just at the time of application, but a strong digital infrastructure will also ensure that all your banking needs are met in a timely and efficient manner. The complete list of documents required for opening the account as well as any other requirements will be mentioned by the bank on their website. Also make sure to check the different kinds of business banking accounts the bank offers because each type will have different features and charges.