How to Open a Current Account for a Partnership Firm in India

Preface: This post was originally published in 2022 and has been updated on May 29, 2025, to provide you with the most current and accurate information.

If you are planning to open a partnership firm, it is important for you to know how to open a bank account for it. Such an account is essential for conducting the firm’s business transactions and managing finances as well as ensuring legal compliance. 

A separate business bank account makes it easier to segregate their personal and business funds. In this blog post, we shall explain how to open a partnership bank account.

Why Open a Current Account for Partnership Firm?

While you must already be aware of the reason as to why a current bank account is opened for a partnership, it is time that we shed a light upon its benefits:

1. Adequate handling of large payments:  With a proper current account for a partnership, it is now easy to handle large volumes of receipts and payments. The process of payment processing is made much swifter.

2. Limitless withdrawal: With a partnership firm bank account, limitless withdrawal is now a possibility.

3. No restrictions to the deposits: No restrictions to the deposits made to the branch. Furthermore, the account holders can deposit the payments in other branches as well with only a nominal fee.

4. Direct payment to the creditors: Cheques, DDs and pay orders can be issued using the current account and creditors can be paid directly.

5. Receipts on behalf of customers: Banks can collect receipts on the customer’s behalf and the same money can be credited to the customer’s account later.

6. Short term borrowing facilities:  The account holder can enjoy overdraft facilities.

7. Easy business transactions:  Business transactions are made easy due to the presence of facilities such as internet banking and mobile banking.

Partnership Account Documents

The following are the partnership account documents that are required to be submitted along with application for opening a bank account for partnership firm:

1. A certified copy of the partnership deed
2. The PAN card that is in the name of the firm
3. Aadhaar card of all the partners of the firm
4. Address proof of the place of business
5. ID proof of the partners of the firm
6. If the partnership is registered, then you are going to need a partnership registration certificate
7. A certified copy of any license that the firm possesses. They can be:

   • Mandi License

   • Labour license

   • Trademark registration certificate

   • Liquor License

   • Registration certificate by customs department

   • Weights and measures registration certificate

8. An NOC from the police department
9. GST registration certificate
10.  MSME registration certificate(if any)
11.  Startup Recognition Certificate (if any)
12.  EPF details of the partners of the firm
13.  SEBI registration certificate
14.  Income tax returns that were filed by the partners
15.  Copy of electricity and the phone bill.

When you submit all the necessary documents required for partnership current account along with the application, you will receive the account in a short period of time!

Step-by-Step Instructions to Open a Partnership Firm Current Account

Here is a step-by-step process for opening a partnership firm bank account:

Step 1: Choose a Bank

You must do research about different public and government banks in India, and compare their services, fees and accessibility. Based on your research, you must choose the bank that you believe is most suitable for your firm.

Step 2: Gather Necessary Documents

Make sure you have all the necessary documents in place. If some of the key documents are missing, it may be hard for you to open an account at a bank successfully.

Step 3: Fill Out Account Opening Form

Once your documents are ready, you must fill out the bank’s account opening form. Make sure you fill out all the details correctly and completely.

Step 4: Submission of Form & Documents

Now, you need to submit the duly filled form and all the necessary documents to the bank branch.

Step 5: Make the Initial Deposit

To activate your account, you might need to make an initial deposit. However, some banks that offer basic savings accounts or zero balance accounts do not require an initial deposit.

Step 6: Account Activation

The bank will carefully go through your documents and application. If satisfied, it will activate your account. Once your account is ready, you can begin business transactions.

Conclusion

For partnerships in India, opening an account at a bank is extremely important. This account is used for business transactions like receiving client payments, paying vendors and suppliers, managing employee salaries, and maintaining proper financial records for ITR filing. Want to register a partnership firm? Connect with Registrationwala for assistance!

Frequently Asked Questions (FAQs)

Q1. Can you run a partnership without a business bank account?

A. Yes, you can run a partnership without an account at a bank. However, it is highly recommended to open an account at the bank for your firm since it helps separate personal and business finances.

Q2. Is partnership deed required to open a business bank account?

A. Yes, you need to submit a copy of your partnership deed if you want to open an account for your firm.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.