Transitioning to a Limited Company: How Do We Ensure Smooth Salary Credits with Our Bank?

Our company transitioned to a limited company on 1st April 2012 from proprietorship. We currently maintain our salary account with your bank. I would like to inquire about the necessary procedure or letter to be issued to the bank for the salary account to ensure regular crediting of our salaries.

Regards,
Dimple Patkar

Every month, you should provide a letter stating that a specific amount is to be debited from the current account via the check number. Additionally, you should include a check for the bank for the same account.

You should also send an Excel statement that includes the name, account numbers, and net amount (the amount to be credited to the employees' accounts).

If you need a sample letter and Excel statement, I can email them to the mail ID that we use. 

We do the same thing or follow the process you mentioned every month. However, our company has now converted into a limited company; previously, it was a proprietorship. I have a doubt: is there any other process or any letter our company needs to provide to the bank as a formality for the conversion of the company into a limited company?

Thanks for the reply.

Regards,
Dimple Patkar

There are many formalities. As it has changed to Pvt. Ltd., you should inform the banks and all other departments of the same. Along with the intimation, you should submit a request for the change of name since the name has been altered. For the name change, you should enclose the ROC certificate, AOA & MOA, Board Resolution, List of Directors, and List of authorized signatories for transactions along with their signatures attested. 

Please let me know if you need any further assistance.