| Management Learner

Company Accounts

Private limited company:-These Types of Companies are body Corporate formed and registered under the companies ACT-1994 with Limited number of members and liability having Memorandum of Association and Articles of Association.It needs the Certificate of Incorporation given by the register.Joint stock companies to start business as a private limited company.Lowest limit of members should be two & highest limit of members should be fifty.It can not offer its shares to the market & shares are not transferable.

Public Limited Company:- Such Companies are body corporate formed and registered under the companies ACt-1994 with limited liability of the shareholders and with no upper ceiling of shareholding.It needs the both Certificate of Incorporation and Certificate Of Commencement given by the register,Joint stock companies to work as a public limited company.It must have the Memorandum of Association and Article Of Association. Lowest limit of members should be seven and upper limit be unlimited.It can offer its share to the market and shares are transferable.

Before Opening A Company Account Head Office Permission Is mandatory.

Documents Necessary for Opening Company Account:-

1.Account Opening Form.
2.Specimen Signature Card.
3.List of Directors.
4.Memorandum Of Association.
5.Articles Of Association.
6.Certificate Of Incorporation.
7.Resolution of  Board Of Directors.
8.Certificate of Commencement for Public Limited Company.
9.Photo of Operations.
10.TIN Certificate.
11.NID card Photocopy.
12.Transaction Profile.
13.KYC (Know your Customer) Procedures.

Articles Of Association:

The below mentioned things to be examined.
1.Terms and references to be examined.
2.Credit Receiving Process and Its Limits.
3.Power of Directors relating credit receiving and properties to be mortgaged on behalf of company.
4.Procedure & Power of cheque/bill endorsement & approval

Resolution Of Board Of Directors:

Resolution should be Consists of following Matters:
1.Name of Bank and Branch.
2.Name & Portfolio/Position of Operators.
3.Date of Decision making meeting.
4.Name of the president who presided over the meeting.
5.Name & signature of directors who were present in the meeting.

For getting Credit Facilities:

Following things to be examined:
1.Nature of Credit.
2.Amount of Credit.
3.Security Arrangement.
4.Nominated Directors name who are authorized for documents.

These are very essential for company accounts.