Do you want to start your own business? If yes, you should know the basic requirements to run your business smoothly. One of the main requirements to start your business is to apply for an axis bank current account
Usually, there are two types of bank accounts, a current account, and a savings account. This article will tell you the detailed facts of the current account, including the eligibility to open it.
What is the current account?
The current account is the basic type of bank account used to carry out a higher number of transactions every day. Many advanced facilities come with the current account that the savings account is unable to do.
Even if the current account does not provide the interest earned facility, the overdraft facility of the current account benefits the account holder, current accounts are best for business, not for any savings or investment purposes.
Eligibility to apply for current account
A businessperson usually opens a current account. Here are some entities of persons eligible to apply for a current account.
An individual can easily open a current account until they need the documents like an issued ID, PAN card, address proof, etc.
A sole proprietor is the boss of their own business and the sole trader. They are also known as entrepreneurs or proprietors. The current account for sole prop is owned by a single person and runs the business without any legal entity. A sole proprietor is liable to open the current account.
When several people join a group and start a business, they are called partners. They shared the loss and profits among themselves that makes from the business. The single person in the partnership is not responsible for any type of profit or loss. Such an entity needs the current account and is liable to open it.
A company is referred to as a legal entity that is made up of a group of people. such companies are eligible to apply for a current account.
A trust is considered a legal entity that works like an agent, a trustee on behalf of a business, or a person for management, administration, and eventual transfer purposes to a beneficial party.
Features of current account
- It is best to open the current account for business purposes
- The minimum age to become qualified for a current account is 18 years
- There are no limits to making transactions daily through the current account
- There is no interest earned on deposits kept in the current account
- There is less needed to maintain the minimum balance in the current account than in the savings account
Benefits of current account
There are several benefits and advanced features that come with a current or savings account.
- There are no limits on deposits to be made in the current account
- There are no charges on inward remittance
- It can offer the overdraft facilities
- Multi-location transfer
A current account is not used to save and store the savings for a long time. The business’s current account is used to manage the transactions.