India corporate bank account
Healy Consultants will assist our Clients with opening corporate banking account in India. Our services will include preparing all the requisite documentation and then submitting them to the bank. Please find more detailed information below.
India banking sector
- India’s commercial banking market is dominated by 26 public sector banks which hold almost 73% of the total assets of the banking sector. In addition, there are 63 commercial banks in the private sector, 43 of which are foreign institutions;
- The State Bank of India is the largest public sector bank in the country, while ICICI Bank is the largest private sector bank. Additionally, international banks like Hong Kong and Shanghai Corporation (HSBC), Standard Chartered Bank and Barclays Bank have also set up their branches in India;
- When operating in India, our Clients can choose to open their accounts in international banks including HSBC and Citibank. Alternatively, they may choose to work with renowned local banks like HDFC and ICICI Bank;
- All companies wishing to open a corporate bank account in India must secure a Permanent Account Number (PAN). A company with a PAN will be deemed tax registered in India;
- It can be challenging to open a corporate bank account in India. On an average, it can take up to two months to obtain bank account approval, account number and internet banking access. The major reasons for these delays are the increased due diligence requirements and generally, sluggish bank bureaucracy.
Healy Consultants services
- Our services include assisting our Clients with i) opening the company bank account and ii) securing access to internet banking facilities. Our fee for this service will be US$3,950. Please note this fees does not include the initial deposit required by the bank;
- Healy Consultants will liaise with the banks to prevent our Clients from travelling for the interview. However, there is still a 10% chance that the bank may require our Clients to travel for a one hour interview. There will be a fee discount of US$950 if you have to travel;
- Following account opening approval, the bank will directly and independently email our Client the corporate bank account number.
Steps to opening a corporate bank account
- Healy Consultants banking team will provide proof of company incorporation to the bank and receive the corporate bank account opening application and a list of supplementary documents;
- Our experts will complete the application form and assist with preparing the supplementary documentation. These documents will be emailed to the Client for their signature and courier return along with notarized copies of passports and proof of addresses for all directors and shareholders;
- Our experts will also prepare a detailed Business Plan relating to our Client’s company to support the account opening application;
- Healy Consultants banking team will submit all the prepared documents to the bank. After we receive the approval from the bank, we will apply for the internet banking facilities on our Clients’ behalf;
- Lastly, our Client receives the i) bank account Internet login and password information and ii) corporate cheque books and iii) corporate cards in a sealed letter.
Foreign exchange controls
- The Indian Government has established a regulatory regime for the exchange of foreign currency under the Foreign Exchange Management Act (FEMA), 1999. Under this act, most forex transactions will be permitted unless specifically prohibited by the RBI;
- In India, the rupee has full current account convertibility for all purposes except for making loans and investments. Hence, our Clients will be able to repatriate their funds from the country. However, all capital account transactions will be monitored by the RBI.
Repatriating Funds from India
While the Indian Government has significantly simplified the process of repatriating funds from the country, certain bureaucratic checks still continue to remain in place. So, in order to remit currency from India, our Clients will be required to submit certain forms to the Income Tax Department, the Reserve Bank of India and their bank. Please find further details below.
- Healy Consultants will prepare and file Form 15CA online on the Income Tax Department website. In this document, following information will be included: i) bank account details of the remittee and the remitter ii) personal details of the remittee and the remitter iii) amount to be remitted iv) amount of tax to be deducted at source (TDS) and v) any tax relief (applicable under DTAAs). We will print a hard copy of the completed form 15CA which will be submitted to the RBI at a later stage;
- Next, our Client must proceed to settle their TDS liability (withholding tax) applicable to the amount being remitted. After this step is completed, Healy Consultants will proceed to prepare Form 15CB. This document is a certificate prepared by your chartered accountant that all tax liability has been settled with the Income tax department. Healy Consultants will be pleased to provide our Client with our accounting and tax services, if required;
- Healy Consultants will now submit the hard copy of form 15CA and form 15CB at the Reserve Bank of India (RBI) for their approval. Kindly note, RBI only needs to confirm if the TDS payment has been successfully made i.e. if the TDS account has been settled, then you should receive the remittance approval from the RBI;
- After receiving approval from the RBI, our experts will prepare Form A2 and submit it to the bank along with the RBI remittance approval document. The bank will verify your documents and proceed to process your payment which should be completed immediately.