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How to Open a Business Bank Account in India [2024]

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The required documents to open a business bank account in India include proof of identity and address, such as an Aadhaar number or PAN card, along with company formation documents and a passport-size photo.

Companies incorporated outside India may be eligible to open Special Non-Resident Rupee Accounts (SNRR) to facilitate local rupee transactions.

Business bank accounts in India often have Minimum Average Quarterly Balance (AQB) requirements. Accounts must meet this requirement to avoid a non-maintenance fee.

Having a business account is essential for companies of all sizes to keep their finances organised. If you have just started a business or are looking to do trade in India, consider opening a business bank account to streamline your local business operations.

This article will guide you through how to open a business bank account in India, including the types of accounts, the commonly required documents, and the best business bank accounts in 2024.

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Types of Business Bank Accounts in India

Banks in India typically offer 3 types of accounts for business and corporate customers: 

  • Business Current Accounts: Also known as business checking accounts, this account type is designed to manage cash flow and everyday financial transactions for companies, offering features like overdraft facilities and transaction handling.
  • Business Savings Accounts: These accounts are ideal for earning interest on short to mid-term savings while providing some level of cash liquidity for operational needs.
  • Merchant Services Accounts: This account type enables businesses to accept and process electronic payment transactions, including mobile PoS and credit and debit cards. 

Additionally, most banks offer business credit cards as another financial product for companies, offering a convenient way to manage expenses and simultaneously helping to build and enhance the company’s credit profile.

Can Foreign Entities Open a Business Bank Account in India?

Foreign companies and Persons of Indian Origin (PIO) residing outside the country are eligible to open Special Non-Resident Rupee Accounts (SNRR) with financial institutions authorised by the Reserve Bank of India (RBI). 
SNRR accounts can only be used for business transactions in rupees (INR). Interest earned on these accounts is taxable in India, and funds are repatriable to non-domestic accounts.

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Tip: Most banks in India also offer personal banking options for Non-residential Indians (NRI), such as NRE and NRO accounts.

Factors to Consider When Opening a Business Bank Account

There are many business banking options in India, each offering products and services with distinctive features for various business needs.

Here are some of the factors to consider when choosing where to open a business bank account:

  • Account Opening Process: Some banks may require an appointment or in-person verification to open a business bank account, while others offer an online application process. 
  • Account Features: Look for features and perks that support and benefit your business operations, such as bulk payments, integrations with invoicing or accounting software, and cheque services. 
  • Fees: Assess all applicable bank fees, including account opening charges, monthly fees, and any minimum balance or deposit requirements to ensure they align with your budget and financial plan. 
  • Transaction rules: See any transaction limits that may apply, such as daily or monthly caps on the amount or number of transactions, which can impact large or frequent transfers essential for your business operations.

What Do You Need to Open a Business Bank Account in India?

The supporting documents you must prepare when applying for a business account vary by bank and account type. However, banks typically require the following documents, depending on the structure of your business:

Sole Proprietors

Here are the generally required documents for a registered sole proprietorship:

  • Proof of Identity: Government-issued ID, such as an Aadhaar number, PAN card, Voter ID, or passport
  • Proof of Address: Such as an Aadhaar card, driving licence, or utility bills
  • Passport-size Photograph: A recent passport-size photograph of the applicant.

Private and Public Companies

If you are doing business as other types of entities, such as a private limited company or limited liability company, you will have to provide additional documents, including:

  • Business PAN Card: A PAN (Permanent Account Number) card of the company.
  • Proof of Identity and Address of Directors: Such as an Aadhar card, PAN card, recent utility bills, or bank statements.
  • Board Resolution: A document that authorises the opening of the account.
  • Proof of Business: Company formation documents, such as Certificate of Incorporation, Memorandum of Association (MOA), Articles of Association (AOA), Articles of Incorporation, or Partnership Agreement, depending on the structure of your business.
  • GST Registration Certificate: Proof that your business is registered under the Goods and Services Tax (GST) system.
  • Other Documents: You may have to provide other supporting documents according to the nature of your business, such as a business licence. 

How to Open a Business Bank Account in India

The application process for a business bank account typically follows these basic steps. However, some financial institutions may have fewer or additional requirements.

Step 1 - Choose a Business Bank Account

The first step is to select the bank and the specific account type that best aligns with your business needs. 

Consider factors such as the availability of physical branches, online banking capabilities, and each bank's specific account features, such as interest rates, access to business loans, and ATM withdrawal options. Moreover, some banks offer business account plans tailored for small businesses and start-ups.
We recommend visiting each bank’s website to compare their business finance products thoroughly, helping you choose an account that optimally supports your business operations.

Step 2 - Prepare the Required Documents and Apply

After choosing where to open a business bank account, the next step is to prepare the required documents according to the guidelines of each account provider. 

Some banks offer an online application process where you can upload the documents and complete the KYC verification digitally. However, if the bank requires an in-person application, ensure that you bring physical copies of all documents to your appointment.

Step 3 - Set up Your Business Bank Account

Once the bank approves your application, you can set up your account. First, add enough funds to meet any minimum balance requirements. Then, based on the instructions from your bank, you might need to connect your account to the bank’s mobile app or activate any card payment options. This ensures your account is fully operational and ready to use.

How Long Does It Take to Open a Business Bank Account in India?

The time it takes to open a business bank account in India varies depending on several factors, such as the bank, the completeness of your documents, and the nature of your business. Typically, banks could take around one week or more to approve your application.

What Fees and Charges Do Business Bank Accounts Have?

The following are the common fees associated with opening and maintaining a business bank account in India:

  • Account Opening Fees: Usually free
  • Account Monthly Fees: Range from INR 0 to INR 100
  • Minimum Balance Requirement: Around INR 1,000 to INR 500,000, depending on account types
  • Account Non-Maintenance Fees: Around INR 1,000 to 8,000
  • RTGS Payments: INR 0 to INR 50, depending on the amount transferred
  • NEFT Transfers: Typically between INR 0 to INR 25
  • Cheque Book Issuance: Mostly free
  • Account Closure Charges: Mostly free for account closure within 14 days

These fees widely vary depending on each bank. We strongly recommend checking each institution's website's fees and pricing page for the most updated and accurate information.

Best Business Bank Accounts in India in 2024

Name of the Account

Key Features

Minimum Average Quarterly Balance (AQB)

HDFC Bank Max Advantage Current Account

  • Unlimited free NEFT, RTGS, and IMPS transactions
  • Deposit and withdraw cash up to 12 times the current month's AMB at any branches
  • Free 100 cheque leaves for every INR 100,000 og balance maintained
  • Free business debit card

Metro and Urban: INR 500,000

Semi-Urban and Rural: INR 250,000

ICICI Bank Smart Business Account 2.0 Silver

  • Free NEFT and RTGS transactions
  • Complimentary Gold Business Banking Debit Card
  • 150 Cheque leaves per month for very INR 100,000
  • API Integration

Metro and Urban: INR 50,000

Semi-Urban and Rural: INR 25,000

Axis Bank Classic Current Account

  • Unlimited digital NEFT and RTGS transactions
  • Unlimited cash withdrawal from over 17,000 ATMs
  • Business Classic Debit Card
  • Free cheque book

INR 100,000

Kotak Mahindra Bank Merchant One Current Account

  • Convert idle current account balance to term deposits through Kotak ActivMoney
  • Free 24/7 internet, mobile, phone, and SMS banking
  • Free multi-city at-par chequebooks
  • Free Business Platinum Debit Card

INR 50,000

SBI Regular Current Account

  • Free cash deposit up to INR 500,000 per month
  • Free NEFT and RTGS transactions through internet and mobile banking
  • Free 50 multi-city cheque leaves per month 

INR 5,000

Statrys mobile application dashboard showing a total balance in a business account.


What information is required to open a business bank account in India?

Typically, you’ll have to provide business registration documents, proof of identity and address, PAN numbers of the business or business owner, and sometimes additional licences. 

Which business account is best for start-ups in India?


Can I open an online business bank account in India?


Can a foreign company open a bank account in India?


Looking for a business account?