Business Persons can open their businesses accounts to avail of a variety of privileged services provided by commercial banks in Pakistan which are only meant for business accounts.
We will discuss in this article how a business person can open their business accounts in any commercial bank and what are the required mandatory documents needed for opening business accounts in Pakistan.
Business Accounts can be segregated into two categories
. Business Accounts on Personal Name
.Business Accounts on Business Name(Sole Proprietor)
The business person has options to either open a business account in his personal name or on his business name. Both accounts have different exposures and the requirement of documents is also different.
If a businessperson needs a bank account in his personal name then he will have to produce the following documents
.National identity Card Latest as per NADRA Record
.Proof of Profession which may include business letterhead, request for the opening of personal name account on the letterhead along with business stamp that matches the title of the business.
.Some banks require the provision of utility bills for verification of business address whereas some banks don’t ask for it. If a bank demand a utility bill for business address verification then it must be in the applicant’s name and the address must be as per letterhead.
The branch manager will have to visit the business premises and will provide an official visit report.
But in the case of Account on Business Name then it will become a more complicated account.
For Sole Proprietor account (although it must be a partnership account which we don’t discuss here) the applicant will have to provide the following documents
.National Identity card
.Business Proof (Letterhead) and a written request from the applicant for opening a sole proprietor account
.Business stamp which must be on the business name
.National Tax Number (NTN) on the business name
.Some Banks may ask for utility bills and the criteria for business address verification will be the same as discussed above
It must be noted that a personal account can is used for business receipts and payments. for this purpose business person must open an account on his business name that is a sole proprietor account.
There is a limit of transactions and debit and credit amounts for accounts which is lower for personal accounts and higher for sole proprietor accounts.
Also Read: SBP Increased Policy Rate by 150 Base Points