Indicative, not a checklist to bank on
Documentation requirements derive from the RBI KYC framework and PMLA record-keeping rules, but every bank applies its own internal checklist on top, and thresholds have been revised over time. Checked July 2026. Use this to understand why entity types behave differently in your funnel — then work from your own bank's current requirements, not from this page.
The most operationally useful field on a new-business lead is the constitution of business. It determines what documents are needed, who can authorise the account, how long onboarding takes and, consequently, how an RM should run the conversation. Treating a proprietorship and a private limited company as the same lead type is the most common reason a well-sourced list underperforms.
The four paths
Proprietorship
The lightest path, and the highest volume in new registrations.
There is no separate legal entity — the proprietor is the business. So the account is opened for the individual doing business under a trade name, and the bank needs the proprietor's individual KYC plus evidence that the business exists. Banks typically ask for two documents in the firm's name, and a GST registration certificate is one of the most commonly accepted.
- Decision-maker: the proprietor, alone. No resolution, no other signatory.
- Speed: fastest of the four.
- RM implication: the person who answers the phone can say yes. Run the whole conversation in one call.
Partnership firm
- Partnership deed, firm PAN, registration certificate where the firm is registered.
- KYC for the partners, and an authority letter or deed clause establishing who may operate the account.
- Decision-maker: partners jointly, per the deed.
- Speed: moderate — usually gated on producing the deed and getting partners aligned.
- RM implication: ask early who is authorised to sign. The person you reach may not be that person.
LLP
- Incorporation certificate and LLPIN, LLP agreement, PAN.
- KYC for designated partners, plus a resolution or agreement clause on operating authority.
- Decision-maker: designated partners.
- Speed: moderate to slow.
- RM implication: an LLP appears in MCA records, so you can identify the designated partners before calling — see GST data vs MCA company data.
Private limited company
The heaviest path, and the largest accounts.
- Certificate of Incorporation, MOA and AOA, company PAN.
- A board resolution authorising the account and naming signatories — the step that gates everything.
- KYC for directors and authorised signatories.
- A beneficial ownership declaration identifying the natural persons behind the entity. The ownership threshold triggering this is set in the PMLA record-keeping rules and has been revised in recent years; confirm the figure your bank currently applies rather than relying on a remembered number.
- Decision-maker: the board, formally.
- Speed: slowest. The resolution alone can add days.
- RM implication: your first call is not a closing call. It is about identifying the signatory and getting the resolution moving in parallel with everything else.
Side by side
| Proprietorship | Partnership | LLP | Private limited | |
|---|---|---|---|---|
| Separate legal entity | No | No | Yes | Yes |
| Entity PAN | Proprietor's | Firm PAN | LLP PAN | Company PAN |
| Constitutional document | — | Deed | LLP agreement | MOA / AOA |
| Board or partner resolution | Not applicable | Authority letter | Usually | Required |
| Beneficial ownership declaration | Not applicable | Applies | Applies | Applies |
| In MCA records | No | No | Yes | Yes |
| Decision-maker | One person | Partners | Designated partners | Board |
| Relative onboarding time | Fastest | Moderate | Moderate–slow | Slowest |
Why this decides your conversion curve
Two consequences fall straight out of the table.
Your acquisition window differs by entity type. A proprietor can open an account within days. A private limited company cannot move faster than its board resolution. Measuring a single conversion curve across both averages two genuinely different processes into a number that describes neither — split the cohort analysis in the timing window guide by constitution and the picture becomes actionable.
Your competitive threat differs too. Video-KYC and digital onboarding compress the proprietorship path dramatically, which is where fintech competitors are strongest. On the private limited path, documentation is the constraint rather than the channel, and a bank that helps a founder assemble the paperwork competes on service rather than speed.
The two questions that predict whether an account opens
Regardless of entity type, ask both on the first call:
- "Who is authorised to open the account?" If it is not the person you are speaking to, everything else is preparation. Get to that person.
- "Do you already have the constitutional documents in hand?" A company incorporated three weeks ago has its CoI and MOA. Whether it has passed a board resolution naming a bank is a different question, and the answer tells you exactly how far away the account is.
Both questions are short, neither is intrusive, and together they qualify harder than any amount of product pitching.
Where the lead data helps, and where it stops
Registration data gives you the constitution, the registration date, the activity and the address. That is enough to route the lead, pick the script and set expectations on timeline.
It does not tell you whether the business already banks somewhere, whether a resolution has been passed, or who the authorised signatory is. For companies and LLPs, MCA records add directors and designated partners, which gets you closer. For proprietorships and partnerships — the majority of new registrations — nothing public fills that gap. It has to come from the conversation, which is an argument for calling early rather than researching endlessly.
What the data does support well is not wasting a specialist RM on a lead whose documentation path guarantees a six-week cycle when the branch target is monthly. Sorting by constitution before allocation is close to free and materially changes RM productivity. Allocation mechanics are in branch catchment routing.
Common questions
Is a GST certificate enough to open a proprietorship current account? It is widely accepted as one of the business-proof documents, but banks typically require more than one document plus the proprietor's individual KYC. Work from your bank's current checklist.
Can a company use a director's savings account instead? Not practically. A company is a separate legal entity, and under RBI KYC norms the account is opened in the entity's own name. This is the structural reason a new company almost always opens a current account quickly — though, as covered in where current account leads come from, it is practically obligatory rather than statutorily mandated.
Which entity type should a branch prioritise? Proprietorships for volume and speed against a monthly target; companies for balance value and cross-sell. Most branches need both, worked on separate tracks.
How long does a private limited account take to open? Longer than a proprietorship, and it depends on the board resolution and your bank's process. Reported activation times for traditional branch-based onboarding run to roughly five to seven working days once documentation is complete — the documentation itself is usually the longer part.
Does the entity type change the account's value to the bank? Generally yes — companies carry larger balances and more cross-sell surface. But proprietorship volume and speed can make it the better use of a branch's month. Measure both rather than assuming.