A corporate account is different from a personal or investment bank a/c. This type of account is provided services that respond to business needs and thus has different regulations in regard to the opening process. In this article, we will cover the discussion on Corporate Account In Zerodha, India’s leading broker.
What is a Corporate Account with a Stockbroker?
A Corporate Account with a Stockbroker is an account opened by a company that allows them to trade in the stock market on behalf of the business. Companies often use these accounts to manage investments, monitor performance, and purchase securities for businesses. The broker will typically provide access to resources such as real-time quotes and research reports, insights on upcoming news, or economic events impacting markets. They will also offer guidance and advice regarding suitable securities based on the objectives of the corporate client’s financial strategy.
Companies are basically opening corporate accounts to meet business purposes. The main advantages of opening an account are many offshore jurisdictions offer positive tax benefits for companies who wish to open a corporate account. Also, many companies are opening one overseas with the intention of managing their income and growing their assets in a more profitable offshore environment.
Where to Open a Corporate Account?
When opening a corporate account then it is crucial to choose a recognized worldwide financial center. This account reflects the client’s business needs since each jurisdiction provides different services. Each business center in the corporate account is regulated by a different financial authority. Also, the corporate account is thus critical to make sure that the offshore jurisdiction client selects the bank with will address the client’s business objectives.
Documents Required to open a Corporate Account in Zerodha
- Documents are duly filled with the Trading and Demat or Commodity forms along with the photographs of the Authorized Signatories or Whole Time Directors and signed across by them.
- The PAN card copy of the Company and the PAN card copies of each Authorized Signatory or Whole Time Director of the firm.
- Address proof copy of the Company and the address proof copy of each of the Authorized Signatory or Whole Time Directors of the Company.
- Proof of Bank account which includes a copy of a canceled cheque leaf or Bank statement or Bank passbook or Letter from the Bank.
- Balance Sheet’s copy of the Company for the last two financial years which they need to submit every year.
- Income proof documents of the Company.
Valid Income Proofs
- 6-month Bank statement or passbook of the company account.
- Latest audited Profit and Loss statement.
- Income tax return (ITR) Acknowledgement.
- If the Company is new, then they need a net worth certificate from a Chartered Accountant and an Income Tax Return declaration (ITR). If the Income Tax Return declaration (ITR) return hasn’t been filed, a declaration of Income Tax returns has to be submitted.
KYC and Other Documents
- The Certificate of Incorporation of the Company with the seal and signature of the Authorized Signatory of the company.
- Other necessary documents are the MOA (“Memorandum of Association”) and the AOA (“Articles of Association”) of the company. The first four pages of the MOA and AOA should have the seal and signature of the Authorized Signatory of the company.
- Form 32 filed by the company which the names of present Directors do not appear on the MOA or AOA.
- Photographs of Individual Promoters holding control which depends either directly or indirectly.
- Needed Companies and all the Directors FATCA declaration.
- Duly filled annexures which are attached with the authorized director’s signature and the company’s seal affixed on the authorized director’s signature and board resolution.
Fees and Charges for Trading with a Corporate Account at Zerodha
Account opening charges are for a corporate account: Trading and DEMAT Account for Rs.300 and Commodity A/c for Rs.200.
Annual Maintenance Charges for a Corporate or a Company are Rs.1000+18% GST per year. The charges for trading are: Equity Delivery charges are Rs.20 per executed order or 0.1% of turnover whichever is lower. Equity Intraday charges are Rs.20 per executed order or 0.01% of turnover whichever is lower. Futures charges are Rs.20 per executed order or 0.01% of turnover whichever is lower. Options charges are Rs.20 per executed order. Currency Futures charges are Rs.20 per executed order or 0.01% of turnover whichever is lower. Currency Options charges are Rs.20 per executed order. Call and Trade Services charges are Rs.20 per order placed by a dealer at Zerodha.
Benefits of Opening a Corporate Account
- The main benefits are enjoyed corporate discounts based on the client’s annual training requirements.
- Take advantage of our free student registration program, saving the client and the client’s team time and money.
- Set up flexible invoicing and billing agreements that suit clients’ business and resourcing or training requirements.
Flexible Online Training Programme that Delivers
- Students can learn anytime – anywhere, giving the client the flexibility to train office, home-based, and agency employees seamlessly.
- Students can learn at their own pace.
- They thoroughly test students through online assessments. Students must pass each module’s test before progressing to the next and this is the best process to learn.
- The final end-of-course exam uses an online training program specially designed moderation simulation tool. This is a flavor of a real moderation environment that gives the last assessment and tests the student’s ability to weigh up information and make the correct moderation decision.
Free Manager’s Guide for a Corporate Account
Once the client has signed up for a corporate account they will get a free manager’s training guide. This helpful guide provides clients with an overview of the training for each assessed module enabling the client to support and understand the training path client’s moderators are on.
- Invest In the Client’s Team.
- Protect Client’s Brand.
- Raise Standards.
- Promote Best Practices.
Can Corporate Account Holders at Zerodha Invest in Mutual Funds?
Yes, corporate accounts at Zerodha can invest in mutual funds using their direct mutual fund platform Coin. If clients have opened their accounts before 15th September 2015 they will have to close their DEMAT accounts with IL&FS and open a DEMAT with Zerodha.
Conclusion
In conclusion, corporate trading in Zerodha is a great option for traders looking to take their business to the next level. It provides several advantages like lower commission costs, access to superior research and analytics tools, and comprehensive risk management services. This makes it one of the best brokers for businesses that are capitalizing on the stock market. Most importantly, by separating your personal life from your business accounts with Zerodha’s corporate account feature, you can secure all investments while still taking advantage of benefits such as tax savings.
