What do you mean by sole proprietor? A sole proprietor is the only owner of the business. Whether it is a small-scale business, company, shop, etc., if there is one person who handles the business, it is called a sole proprietorship company.
An opened bank account in the name of this firm is called the sole prop current account. There is no legal difference between the business and the owner because they will represent each other. It is important to open the current sole proprietorship firm because it controls financial activities.
What is sole prop current account?
A sole proprietorship current account can easily be opened in the business’s name or the owner’s name. But before approaching the bank, ensure to choose the right one. You should consider some things before opening the sol prop current account.
Carrying financial activities like NEFT, withdrawal facilities, etc., is easier if the bank is accessible. You can easily visit the bank and ask your queries. If there is a lack of bank accessibility, then there are no big problems if the internet banking and mobile banking facilities are accessible to you.
Preparing a list of all your banking requirements is suggested, like how you need the services like cheque encashment, NEFT, demand drafts issues, etc. Then, you must discuss these services with the banker as to how they accommodate your need and what charge they have to take from you.
Bank on digital platforms
In the digital world, the banking process is easy and gives you a sound knowledge of technology, and banks provide internet banking and mobile banking facilities. If there is a mobile application, there are many conveniences to managing financial activities.
You should check all information related to the minimum monthly balance needed to maintain the sole prop current account, charges of SMS alert, a penalty of non-maintenance of minimum balance, issues of chequebooks, ATM withdrawals, etc.
Also Read: How to Apply for a Loan
How to apply for sole prop current account
Every bank has its way of application and approval process for current accounts. You can easily apply for an online open current account as a sole
proprietorship by visiting the bank branch or applying online.
- Before opening the current account, discussing with your banker related transaction requirements and business activities is suggested.
- They are suitable for telling which documents you need based on the business.
- You should take the necessary documents, like a passport, PAN card, photographs, etc.
- Fill out the application form and submit it with the photographs affixed on the appropriate boxes and documents required.
- After the KYC completion, you must deposit the initial amount, which differs from one bank to another.
Then you must wait some days to get the account details, chequebook, and debit cards. Never forget to maintain the minimum required balance to avoid the charges. Never hesitate to ask the banker if you have any questions about the account’s operation.
A sole prop current account can easily open by the name of the business or owner. It is the best account to deal with financial activities.