What are the steps involved in opening a bank account for a subsidiary company in India

To open a bank account for a subsidiary company in India, the following steps and documentation are typically required:

Steps to Open a Bank Account

1. Complete Company Registration: Ensure that the subsidiary is officially registered and has received the Certificate of Incorporation from the Registrar of Companies (RoC).
2. Obtain Necessary Tax IDs: Acquire a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. These are essential for tax compliance and banking operations.
3. Gather Required Documents: Prepare the following documents to present to the bank:
   • Certificate of Incorporation: Proof that the subsidiary is legally registered.
   • Memorandum of Association (MoA) and Articles of Association (AoA): These documents outline the company’s structure and regulations.
   • PAN and TAN: Tax identification numbers required for banking and tax purposes.
   • Board Resolution: A resolution from the board of directors authorizing the opening of the bank account and designating the signatories for the account.
   • Identity and Address Proof of Directors: Valid identification (like passports or Aadhar cards) and address proof for the directors who will operate the account.
4. Choose the Bank: Select a bank that meets the subsidiary’s requirements, considering factors such as service fees, accessibility, and additional services offered.
5. Visit the Bank: Schedule an appointment with the chosen bank to submit the documents. Some banks may allow remote account opening, but this varies by institution.
6. Complete Bank Forms: Fill out the bank’s account opening forms as required. The bank may also require additional information about the subsidiary’s business activities.
7. Initial Deposit: Some banks may require an initial deposit to activate the account. This amount varies by bank.
8. Account Activation: Once the bank processes the application and verifies the documents, the account will be activated, and the subsidiary will receive account details, including the account number and any related banking materials.

Additional Considerations

• Compliance: Ensure compliance with any specific banking regulations or requirements that may apply to foreign-owned subsidiaries.
• Time Frame: The process of opening a bank account can take anywhere from a few days to a couple of weeks, depending on the bank and the completeness of the submitted documentation.

By following these steps and ensuring all necessary documentation is in order, a subsidiary company can successfully open a bank account in India, facilitating its financial operations and transactions.