Financial terminology: what is a checking account

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

When starting a business or managing money, an organization has to deal with such concepts as registering a current account, registering a register, and so on. Of course, when contacting the relevant structures, services or a private financial consultant, you can get qualified information on such issues. However, having decided to open your own business, so that there are no unforeseen situations with registration, it is necessary to work out all the details before submitting documents. And, of course, for this you need to understand financial terms, such as, for example, what is a checking account.

The concept of "Settlement account"

This concept implies a bank account opened at the request of legal entities (firms, organizations, companies, and so on) to conduct settlement payments when doing business or manufacturing any product. It can be noted that the question: “What is a current account?” - does not exist for individuals.

According to the tax legislation of the Russian Federation, it is providedmandatory conduct of monetary transactions by persons legally registered through banking structures, while for individual entrepreneurs this procedure is not unchanged. Individual entrepreneurs can open this type of account for the convenience of settlements with suppliers, customers and when making other types of payments. This procedure greatly simplifies the management of tax payments, payroll and the like.

Opening conditions

After considering the question: “What is a checking account?” - you can proceed to further coverage of the topic. For a legal entity, when applying to the relevant points, it is necessary to present the following documents:

• a copy of the charter certified by the tax committee;
• constituent documents;
• confirmation from the register maintained by the federal service (EGRLE), this extract is ordered from the tax committee when submitting an application in any form and is considered for about 5 days;
• licenses to organize activities;
• director's passport and application form for a legal entity;
• application with a request to open a current account, a sample of which is provided by the bank.

For individual entrepreneurs, the list of documents is slightly different, the list is given below:

• IP registration certificate;
• statement of registration with the tax service;
• passport and activity patent.

It may be noted that in some banks the list of documents may differ fromthe above information. In addition, a message about opening a current account must be sent to the tax service immediately so that there are no misunderstandings and other unforeseen situations.

Additional information

When choosing a bank, you can use the following criteria:

• payment level for opening an account and connecting additional services (Internet banking and others);
• service charges;
• reliability and reputation of the bank;
• availability of special programs, such as "Salary project" and so on;
• providing additional opportunities, such as opening a line of credit, a deposit account and others.

Also when considering the question: “What is a checking account?” - it can be noted that there are factors of refusal to conduct the procedure for its opening. It can be in such cases:

• when providing false information or false documents;
• indicating a false address;
• facts of opening several accounts in the name of one manager;
• absence of the person in whose name the account is opened.

It is very convenient to carry out settlements and other cash transactions through a current account, and at the same time, this procedure is mandatory for organizations and firms.