An LLP must meet various requirements after being incorporated online. In one example, the LLP must open a bank account in its name. Read on for more information.
LLCs, as well as all other business entities, must open a bank account. For its commercial transactions, the LLP needs to be able to receive and transmit funds. Learn how to open an LLP account.
Do You Need An LLP Account?
Post-registration compliance for LLPs begins with a current account. Every business must have a current account. Businesses conduct many transactions on a regular basis, and they can easily do so with a current account. A current account does not earn interest. It’s therefore beneficial to do business smoothly, regardless of the number of transactions.
LLP Current Account Benefits
A current account makes banking easier. Savings accounts do not offer the same convenience. A current account holder has access to many services. Current account holders can currently access online banking, doorstep banking, and 24-hour banking.
Furthermore, having a current account shows that the company is active. Utilizing a current account for transactions enhances the LLP’s goodwill.
Credit is necessary for every LLP to function on a daily basis. An overdraft can be accessed through a current account. Cash shortages will necessitate an overdraft. While the bank charges interest, short-term funding needs will be met.
Opening An LLP Account: Required Documents
To apply for an LLP, you must submit a list of self-attested documents and details
- LLP registration certificate from the registrar
- Provide proof of the LLP’s address if it differs from the address on the Certificate of Registration
- The landline and mobile phone numbers of LLP
- Number of the permanent account of the entity
- The board adopted several resolutions
- A passport-sized color photograph of each authorised signatory
- For the authorized signatory, a government-issued photo ID and proof of residence are required
- Whenever a POA has been granted for account operations, a photograph, identification, and address proof of the POA holder should also accompany the agreement
- Owners who hold 15% or more of the company directly or indirectly (must be on company letterhead).
- Identified beneficial owners must provide proof of their identities.
- Identify the beneficial owners and submit proof of their addresses.
- A contract between LLPs.
- The LLP’s letter
- The list of designated partners has been updated.
- Checks are opened from current accounts.
Experts Can Help You Open An LLP Account
Experts can help you incorporate LLPs and set up bank accounts in a simple and straightforward manner. Our experts can handle the incorporation formalities as well as answer questions post-incorporation regarding tasks such as opening an LLP bank account in a timely and legally sound manner.