E-business
Shripad Joshi
(Querist) 13 December 2011
This query is : Resolved
Hello I want to start an online business and for the payment gateway I need a current account under my firms name. I have registered as a sole proprietor but the bank need's some proof from the state government or local government for the business. I don't want to register a shop as I do business from my home and I will be moving out of Kolhapur in 5-6 months. Is there any other way I can register business with the state or local government? Thanks!
PS: I don't want to register a company ( LLP, PVT etc) until my business has flourished.
adv. rajeev ( rajoo )
(Expert) 13 December 2011
Registration of VAT is mandatory without this you cannot open current account.
Shailesh Kr. Shah
(Expert) 13 December 2011
There is no shortcut.You have to fulfill of requirement of Bank as you already known that how to complete.
prabhakar singh
(Expert) 13 December 2011
You neither want to register under shop Act nor under partnership/llp/company,then you are saying us to take you chowk from a room whose door have been closed from behind by you.Now think how can it be possible unless some one take you out against your wish and that we shall never do.??????????????????????
prabhakar singh
(Expert) 13 December 2011
Sorry!i could not short out it repeated.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 13 December 2011
Please also read the provisions of IPC carefully. In your State the cyber cell is at HQ so be prepared to attend there in case of consumer complaints.
Shripad Joshi
(Querist) 13 December 2011
Thank you all for your replies.
@ Mr. Rajeev I think it is necessary to register a shop before you register for VAT and I will be selling coupons online like snapdeal am I liable for VAT?
@ Mr. Prabhakar Singh : I want to start a new online website and I just require a Current bank account for that. One CA suggested not to register for shop act as I will be moving out of the city and as I will not be stable. To register a company it will cost something around 15-20 thousand and I am just a newbie who just passed college and wants to start a business.
Isn't there any Indian law in which we can just register with the government that we are doing so and so business. So many housewives in India sell some or the other products. There should be a law for small start ups like this.
Raj Kumar Makkad
(Expert) 13 December 2011
You start what ever you deem fit and later on when you start earning, get it registered as per needs arising at that time. There is no need to be worry initially.
Guest
(Expert) 14 December 2011
Normally, e-business is not considered reliable by many people, as several complaints of cheating do arise. That may be the reason the bank may be desirous to be sure whether it is not assisting any fake firm that may cause some money laundering cases later on and the bank may also get bad name.
For reliability sake, I would suggest you to go for registration of LLP.
Shripad Joshi
(Querist) 14 December 2011
@ Mr. Dhingra: The bank is ready to grant me an account but they just need a proof from state govt. or local govt. about the firm as I want to open an account in the firms name.
I think this discussion is taking a different route. Can everyone just tell me different way to register a business other than Shop Act and company formation.
R.Ramachandran
(Expert) 14 December 2011
Dear Shripad,
You say that you have registered as a sole proprietor.
Please indicate with which Authority you registered yourself as a sole proprietor?
What is the documentary proof that you have got to say that?
Guest
(Expert) 14 December 2011
No other alternative except to open a current account in your personal name. If you talk about a firm, you have to produce a valid proof of existence of a firm.
In fact, the discussion is not taking a different route, but you seem to ask the experts to suggest some illegal method of opening a bank account. In my post I have merely pointed out the reason behind the reluctance of the bank to open a current account in the name of a firm doing e-business, but having no legal ground to support that.
However, according to you, if the bank is ready to open your account, why that is not opening the account and imposing conditions before opening such account. Imposition of any condition which you can't afford to fulfill, in itself, is a refusal by the bank.
R.Ramachandran
(Expert) 14 December 2011
Dear Mr. Dhingra,
No one can open a current account in his personal name. Only Savings Bank account can be opened in ones personal name.
Guest
(Expert) 14 December 2011
Dear Shri Ramachandran,
You may kindly like to review your statement. If the transactions are frequent, a current account has to be opened by an individual. You may like to see eligibility conditions of the banks, which clearly provide, Individuals, Joint accounts, Sole proprietary concerns, Partnership firms, HUFs, Companies, Association of persons, Society, Trusts, Body Co-operatives, Charitable and other institutions, being eligible to open a current account.
Advocate. Arunagiri
(Expert) 14 December 2011
I am also having the similar opinion, current accounts can be opened in the name of the individual also.
In the SB account you will earn interest, in the Current account you will not get interest, the terms of charges differ.
For more details I enclose the Current account opening application for of South Indian Bank.
I am also giving the url of Canara bank.
http://www.canarabank.com/English/downloads/SAVINGS%20BANK-CURRENT%20ACCOUNT%20OPENING%20FORM.htm
Shripad Joshi
(Querist) 14 December 2011
@ Mr. Dhingra: I don't want to do it illegally that's why I asked the query here. I just want to know the different ways by which we can register a business.
Please follow the below link for the list of documents a bank requires to open a current account
http://www.icicibank.com/business-banking/transation-banking/cluster-current-ac/documentation.html
I need a proof from table A in the above link. Please let me know if there is any other way to register a business other than shop act or company formation.
As I believe I will be doing business from home and home is not really a SHOP. Isn't there any government law to register home based businesses?
Shripad Joshi
(Querist) 14 December 2011
@ Mr. Ramachandran: I have a certificate from a CA for the registration of a sole proprietor.
Can I get a PAN card for sole proprietor firm? If yes what are the documents required?
Guest
(Expert) 15 December 2011
Dear Shripad,
What is Table A, that is not given in the list of documents or any weblink for that. Can you state what is Table A?
You can register a proprietory firm with the Registrar of Firms, if not interested in registering that as LLP, etc. There is no bar in registration of a firm in your house, as I don't think there would be any objection to the civic body on your IT business from home. Of course certificate from CA may probably not be entertained by the bank.
Shripad Joshi
(Querist) 15 December 2011
Is there any website for Registrar of Firms. I live in Kolhapur Maharashtra guess I'll have to visit Pune office to do that right?
R.Ramachandran
(Expert) 15 December 2011
Dear Shripad,
You are going in circle and you are not coming out with clear answer.
You say that you have a certificate from a CA for the registration of a sole proprietor.
Is the CA any authority who is empowered to grant such registration? And you really believe that is correct?
malipeddi jaggarao
(Expert) 16 December 2011
I would like to add some more points:
a) Individual can open Current Deposit account if the transactions are business in nature. In fact if there are huge transactions in S.B.Account indicating any business-like the S.B.Customer will be advised to close SB and open CD Account. CD account is interest-free for the bank.
b) for opening Current Deposit Account, bank will not insist any proof of registration generally. But as Mr.Dhingra rightly pointed out, if the bank is suspicious of the intention for opening the account other than the legally permitted business purpose, it can insist for some proof to this effect.
c) Normally registration with any authority is not compulsory for opening C.D.Account.
Shripad Joshi
(Querist) 20 March 2012
I found an answer to this by forming an partnership firm. We can apply for a current account by forming a partnership firm.
