All you need to know about the bank account for LLP

In today’s time almost every person and entity in India possess a bank account as it is practically not possible to undertake transactions without the bank account.  The Limited Liability Partnership in India is registered under the LLP act 2008 and is a separate legal entity then its partners.  According to the rules and regulations of the LLP act 2008 there some compliances that it requires to fulfil like filing the MCA returns, income tax returns, annual compliances etc. One such mandatory requirement for the bank account for LLP is to open. It is mandatory for every Limited Liability Partnership to get the bank account opened within the specified time limit.  As our topic says here we will be taking a look at the documents required and the advantages of opening a Bank account.

Bank Account for Limited Liability Partnership

Lawdef- Bank Account for Limited Liability Partnership

Documents required for opening a bank account by an LLP

Every limited Liability partnership is required to submit the following documents for opening a bank account –

  • Certificate of incorporation of LLP
  • PAN of LLP
  • Registered office address proof
  • PAN and address proofs of all partners of the LLP
  • LLP agreement
  • Board resolution
  • Any other document as specified by bank

Advantages of having a bank account for an Limited Liability Partnership

Apart from the mandatory requirement there are also many other multi facet benefits for the LLP for opening a bank account –

  1. Fulfilment of Mandatory Compliance – Opening a bank account helps the company to fulfil its mandatory compliance requirement and being compliant with the applicable rules and regulations.
  2. Adds credibility to your business- An LLP with the bank account is considered as more credible than others.  Before granting any kind of loans and advances facility the credit rating of the company is always checked and the rating can be obtained by checking the bank account transactions. Also, the applicant might require the letter of credit or a guarantee from the bank in which the holder has a bank account.
  3. Ease in Conducting Business – Having a bank account makes it seamless for the LLP to transact business in India and provides more benefits than savings account. With the business account the LLP can undertake ever transactions at their doorstep with the services of internet banking and the doorstep banking.
  4. Offers the Overdraft Facilities – Every business unit requires the funds at every stage for the development of its operation. The over draft facilities offered by the bank are of utmost importance as it acts as an additional source of income. Having the bank account can only enable a person to take the overdraft facilities
  5. Professional – Undertaking the business transaction with the personal account not at all sounds professional. Having the bank accounts creates the good image of the LLP and it shows that the business is operational.
  6. Ease in separation of business and personal transactions – The saving account is for an individual person and the current account is suitable for the business entity. Having the distinct bank account an LLP can distinguish its transactions from the partners. The LLP can ascertain the actual profits of the company and reflects its true position.

In the last if you want to register your company under Limited Liability Partnership click Here.