Proprietary current account by a company
Jee Education
(Querist) 06 June 2017
This query is : Resolved
I am the MD of a Private company. The company has a current account with state bank of India in its name. Now we are coming up with a new project in education, called XYZ. Now the company, acting as an artificial proprietor, would like open an current account in the name of the project XYZ under the same CIF of the company. The resolution undertakes that the company company will take care of all the statuary requirements including IT and GST related XYZ. Please guide me the procedure to open an account under the name XYZ with SBI.
Dr J C Vashista
(Expert) 07 June 2017
Commercial query, seek professional services from a lawyer, which you can afford and should employ.
Guest
(Expert) 07 June 2017
Mr. Jeevan,
Unable to understand, why you preferred to post your query at LCI, instead of asking from your own bank, where you have already been operating a current account for years together!
If you are really an MD of a company, not a student, you could well have consulted only the bank, where you are already operating a current account, not at the LCI. Even otherwise also, your own CA/ Auditor would have guided you well, if you find yourself unable to afford fee of some consultant, while even thinking big about a new project.
More so, if you think opening of a current account is a matter of legal documents, as per your classification, you are wrong. Being an MD, you could ghave classified your query under the heading of Corporate Laws or Banking Laws, not as legal document. In my view only a student can classify this query wrongly under legal documents, not an experienced MD of a company, if you really are.
Jee Education
(Querist) 07 June 2017
I am still studying, though I am the MD of two companies. The problem is that SBI manager and their legal department is not ready to put time and solve the issue. It is about how the resolution is drafted.
Basically, If I can get a resolution in this effect, I can show it to bank saying that I got it from lawyers club; and solve the issue.
Logically, it is not my problem; but SBI's lethargy.
Guest
(Expert) 07 June 2017
So, why depending solely upon SBI, if not ready to cooperate you? Why not open account at some other commercial bank, who may be interested in business?
Jee Education
(Querist) 07 June 2017
SBI has many branches and the schools in rural areas find it easy to deposit fee in SBI. Helping the people in the rural area is the concern. ICICI is already ok with it
Guest
(Expert) 08 June 2017
No excuse. You should feel free to discuss with the upper management of the bank, if you feel any problem with your present bank branch.
krishna mohan
(Expert) 09 June 2017
For opening current account you need to provide document as done earlier and comply with Banker's requirements. If new set of documents asked for better approach CA who is auditing your accounts and if necessary go along with him/her to Bank to understand the requirement and comply with it if you want SBI only. Else go with ICICI as you say they are OK.
