How-to corporate MF company folio

How to open a mutual fund folio for a corporate (Company / Pvt Ltd / Pub Ltd)

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~5 min.

Key facts

Entity types	Private Ltd, Public Ltd, OPC (One Person Company), Section 8 (non-profit)
Board resolution	Mandatory; specifies authorised signatories for MF transactions
KYC	Corporate KYC: Certificate of Incorporation, MOA/AOA, board resolution, directors' KYC
Tax	Per Income Tax Act for companies; flat rates

Procedure

Confirm company is eligiblePrivate Ltd, Public Ltd, OPC (One Person Company), Section 8 (non-profit) can invest. LLP is separate (different KYC). Partnership and Sole Proprietorship use individual / firm KYC.
Pass Board ResolutionBoard of Directors passes a resolution authorising MF investments. Resolution specifies: investment amount/types, authorised signatories (typically 2 directors or director + finance officer), AMCs to invest with.
Gather corporate KYC documentsCertificate of Incorporation. Memorandum and Articles of Association (MOA/AOA). PAN of company. Board Resolution. List of Directors with their KYC.
Authorised signatories' individual KYCEach authorised signatory must have personal KYC. Standard NRI / resident KYC procedure.
FATCA / CRS for companyCorporate FATCA / CRS form. Foreign tax residency (if any). Substantial Owner declaration (US-person ownership > 10%). Reportable status determined.
Apply for corporate folioAMC’s institutional application form. Submit at AMC’s institutional desk, CAMS / KFin. Company stamp + authorised signatories’ signatures.
Fund subscription from company bankInvestment funded from company’s current account, not personal. Bank name in company’s name.
Receive folio with company nameFolio in company’s name. Authorised signatories appear on records. All transactions require their signatures.

A corporate mutual fund folio is held in the name of a registered company (Pvt Ltd, Public Ltd, OPC, or Section 8). The Board of Directors authorises investments via formal resolution; authorised signatories operate on behalf of the company. KYC and FATCA documentation is more extensive than individual KYC.

Conflict-of-interest disclosure. This guide is published by webnotes.in for informational purposes. WebNotes has no commercial relationship with any AMC. No affiliate commission is earned. For substantial corporate investments, consult a CA familiar with corporate compliance.

Step-by-step procedure

See the procedure infobox above.

Eligible entities

Type	Eligibility
Private Limited Company	Yes
Public Limited Company	Yes
OPC (One Person Company)	Yes
Section 8 (non-profit)	Yes (with specific approvals)
LLP (Limited Liability Partnership)	Use LLP folio procedure
Partnership	Use partnership folio procedure
Proprietorship	Use individual proprietor’s KYC
Trust	Use trust folio procedure
HUF	Use HUF folio procedure

Board Resolution content

Standard Board Resolution should specify:

Authority: “Board hereby authorises the company to invest in mutual funds…”
Investment amount / categories permitted.
Authorised signatories (typically 2 directors, or director + CFO).
AMC(s) approved (or general authorisation).
Reporting requirements.
Modification authority.

A typical Board Resolution is 1-2 pages. AMC requires certified true copy with company stamp.

FATCA / CRS for corporates

Corporate FATCA / CRS form is more complex than individual:

Question	Detail
Foreign Tax Identification Number	If foreign tax-resident
Active vs Passive NFFE	Active (>50% gross income from active business) or Passive
Substantial owners	Individuals owning > 10% of company
Reportable entity status	Per FATCA / CRS rules

For Indian companies with no foreign ownership: typically classified Active NFFE; minimal reporting overhead.

Tax treatment for corporate MF

Aspect	Corporate MF treatment
Tax rate	Per company tax slab (22% / 25% / 30%)
LTCG	12.5% above Rs 1.25 lakh per Section 112A (equity)
STCG	20% per Section 111A (equity)
Debt MF	Slab rate post FA 2023
Section 80C	Available; limited
MAT (Minimum Alternate Tax)	Applies to companies; complex

Corporate MF income aggregates with other company income for tax computation.

Operational considerations

Aspect	Detail
SIP allowed	Yes
Switch / STP / SWP	Yes
Multiple AMCs	Yes; separate folios per AMC
Authorised signature change	Fresh Board Resolution + KRA update
Audit trail	Maintain corporate records of all transactions

Common corporate scenarios

Treasury investment: Idle cash parked in liquid funds.
Strategic equity allocation: Portfolio of equity MFs.
Risk-hedged debt: Diversified debt MF portfolio.
ESG / sustainability mandate: Sectoral / thematic MFs.

Closing or restructuring

Company dissolution / merger:

Folio holdings included in liquidation / merger.
Special procedure for transfer of MF units in restructuring.
Tax implications via Section 47 (no-tax-merger if qualifying).

External references

References

Companies Act, 2013.
Income Tax Act, 1961.
SEBI (Mutual Funds) Regulations, 1996.
CBDT FATCA / CRS notifications.
AMFI Best Practice Guidelines on institutional investors.

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Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.