India corporate bank account in 2023
Healy Consultants Group PLC 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. If required, our representative will attend the account opening interview on your behalf. Please find below more information regarding business banking in India.
India's 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 HDFC Bank is the largest private sector bank. Additionally, international banks like Citibank, HSBC, SCB and Barclays 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 including HDFC and ICICI Bank;
- 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 in India. The major reasons for these delays are the increased due diligence requirements and generally, sluggish bank bureaucracy.
Healy Consultants Group PLC's services
- Our services include assisting our Clients with i) opening the company bank account and ii) obtaining access to internet banking facilities. As you can appreciate, it is a difficult task to obtain bank account approval through a newly formed company, when the shareholders, directors and bank signatories reside overseas. Healy Consultants Group PLC will prepare a business plan for the bank to optimize the probability of corporate bank account approval. Our fee for this service will be US$4,950. Please note this fee does not include the initial deposit required by the bank;
- Our Team 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$1,450 if you must travel;
- The banks enjoy the ultimate power of approval over corporate bank account applications. Consequently, guaranteed success is outside our control. What is inside our control is the preparation and submission of a high-quality bank application that maximizes the likelihood of approval. To date, we enjoy a 100% approval record because of our global banking relationships and determination;
- 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 in India
- Our 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 on behalf of our Client, and assist them with preparing the supplementary documentation. These documents will be sent to the Client for their signature who will courier them to our India affiliate office along with notarized copies of passports and proof of addresses for all directors and shareholders;
- Further, our experts will also prepare a detailed Business Plan relating to our Client’s company to support the account opening application;
- Our Banking Team will thereafter 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 IndiaWhile the Indian Government has significantly simplified the process of repatriating funds from the country, certain bureaucratic checks continue to remain in place. So, in order to remit currency from India, our Clients will be required to fill out certain forms and submit them to the Income Tax Department, the Reserve Bank of India and their bank. Please find below the steps taken by Healy Consultants Group PLC to assist our Clients repatriate their money from India.
- Healy Consultants Group PLC 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 Group PLC 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 Group PLC will be pleased to provide our Client with our accounting and tax services, if required;
- Our Team will now submit the hard copy of form 15CA and form 15CB to 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.
India: Recommended banks for multicurrency corporate bank account opening
Global banking options Standard Chartered Bank DBS Bank India ICICI Bank Axis Bank Our recommendation in order of preference 1 2 3 4 Does Client need to visit bank? No No No No Can account be opened for a foreign company? Yes Yes Yes Yes Initial deposit for US$ corporate account US$500 US$200 US$200 US$200 Initial deposit for local currency corporate account US$500 US$200 US$200 US$200 How long to receive account numbers? 4 weeks 4 weeks 3 weeks 2 weeks Dedicated relationship manager Yes Yes Yes Yes Our rating of the bank’s customer service Great Great Good Average Internet banking available Yes Yes Yes Yes US$ corporate cheque book No No No No Corporate ATM card Yes Yes Yes Yes US$ corporate debit card (Visa) No No No No Local currency corporate debit card (Mastercard) Yes Yes Yes Yes How long to receive password and login name? 10 days 10 days 12 days 10 days Can local currency transactions be viewed? Yes Yes Yes Yes Can US$ transactions be viewed? Yes Yes Yes Yes Online local currency payments to third parties Yes Yes Yes Yes Online US$ payments to third parties allowed Yes Yes Yes Yes Our rating of local currency Internet banking Good Good Average Average Our rating of US$ Internet banking facility Good Good Average Average Your dedicated bank officer will be located in Delhi/Mumbai Delhi/Mumbai Delhi/Mumbai Delhi/Mumbai Direct office telephone number Yes Yes Yes Yes E-mail instructions to banker allowed Yes Yes Yes Yes Fax instructions to banker allowed Yes Yes Yes Yes Telephone instructions to banker allowed Yes Yes Yes Yes
Frequently asked questions
Which banks would you recommend for opening corporate accounts in India?Healy Consultants will recommend top notch international banks including HSBC, Standard Chartered and Citibank.
What supplementary banking services will be offered if I open a corporate bank account in India?Your firm will have access to the following services: internet banking and telephone banking, checking accounts, savings accounts, debit and credit cards, fixed term deposits and wealth management.
Is online corporate banking deemed a safe option when working in India?Yes. Healy Consultants works only with reputable banks in order to ensure safety during online transactions for all our Clients.