Financial Terminology: What is a Current Account

When opening a business or managing money, organizations have to deal with such concepts as registering a settlement account, registering and so on. Undoubtedly, when you contact the relevant structures, services or a private financial adviser, you can get qualified information about such issues. However, having decided to open a business in order to avoid unforeseen situations with registration, all the details must be worked out before submitting documents. And, of course, for this you need to understand financial terms, such as, for example, what is a settlement account.

The term "Settlement account"

This concept implies a bank account opened by the request of legal entities (firms, organizations, companies, etc.) to conduct settlement payments when conducting business or production of any products. It can be noted that the question: "What is a settlement account?" - for individuals does not exist.

According to the tax legislation of the Russian Federation, it is provided for mandatory conduct of cash transactions by persons legally registered through banking structures, whereas for individual entrepreneurs this procedure is not unchanged. IP for the convenience of calculation with suppliers, customers and for other types of payments can open this type of account. This procedure greatly simplifies the administration of tax payments, payroll and the like.

Terms of opening

Having considered the question: "What is a settlement account?" - it is possible to proceed with further coverage of the topic. For a legal entity, when applying to the relevant points, it is necessary to produce such documents:

• Certified copy of the charter in the tax committee;
• Constituent documents;
• Confirmation from the register maintained by the federal service (USRLE), this statement is ordered by the tax committee when submitting the application in an arbitrary form and is considered for about 5 days;
• Licenses for the organization of activities;
• The director's passport and the questionnaire to be filled in by a legal entity;
• A request with a request to open a settlement account, a sample of which is provided by the bank.

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

• Certificate of registration of IP;
• Statement of registration with the tax service;
• Passport and patent for the implementation of activities.

It can be noted that in some banks the list of documents may differ from the above information. In addition, the message on opening a settlement account to the tax service must be sent without delay, so that there are no misunderstandings and other unforeseen situations.

Additional Information

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

• Level of payment 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 credit line, a deposit account and others.

Also, when considering the question: "What is a settlement account?" - it can be noted that there are factors for refusing to conduct a procedure for its opening. It can be in such cases:

• When providing false information or false documents;
• Indication of a false address;
• The facts of opening several accounts in the name of one leader;
• The absence of the person whose name the account is opened with.

It is very convenient to make settlements and other cash transactions through a settlement account, and this procedure is mandatory for organizations and firms.