Bank account for proprietorship concern

Open a current account in the name of business.

Sooner or later, transactions of any business are required to be carried out from current account. Business transactions are not allowed in savings accounts.

Current Account are meant for Business Transactions and Savings Accounts has the name suffice is meant for Normal Indivudual Savings. 

You can use both but i will prefer you will open a current account because it is means for bussiness transactions and on the other hand while you using the saving account there are some restriction which restricts you to a certain point !!

Following benefits you will get if you will open a Current Bank Account -

• Segregate business finance from personal finance
• Professionalism in business
• Ability to prove credit worthiness
• Overdraft facility
• Ease in banking transactions
• The main objective of current bank account is to enable the businessmen to conduct their business transactions smoothly
• There is no restriction on the number and amount of deposits
• It enables the current account holder to obtain overdraft (short-term borrowing) facility

So it is always better for a business entity to open a seperate current bank account.

Hi,

Yes its always better to open a current account in the name of the business for carrying out business transactions. So you need to register with Shop & Establishment Act dept. and this will help you in opening a current bank account.

Regards

Chandan.

Thank you all. We will start one New current account in the business name.