Abhishek (Proprietor) 06 July 2011

Bank Account for Preoprietership

I am planning to start an institution to coach students for certain exams and English language as a sole proprietorship. All banks are asking for TWO government issued documents as proofs of the business as per an RBI circular. They don't seem to know WHAT documents are valid in my case. It's not a company so there is no registration certificate and service tax registration is only required if the turnover crosses a certain amount. I am really worried as I can't seem to find out how to get 2 documents. If I try to register for shops and commercial establishment, they too ask for a proof of business like a bill in the name of the business. And the service providers(telephone/electricity) also require some proof to issue bills in a business name. And banks are refusing to accept CA's letter. Please help me as to how to get my bank account opened as I would be accepting fees through demand drafts.

Thanks

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3 Replies

adv. rajeev ( rajoo ) (practicing advocate) 06 July 2011

PAN or voter IDs are sufficient to open the bank account.

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Abhishek (Proprietor) 06 July 2011

Thanks for the reply but the banks are not accepting that. I have been to PNB, SBI, ICICI, Axix, Yes Bank, Canara Bank, OBC, Bank of Baroda and HDFC. They ALL are saying that as per the new RBI circular which came in 2010, they need 2 DOCUMENTS for the firm apart from my individual ID. It is becoming frustrating as this rule makes no sense. Please help as I am sure new business are springing everyday and are getting bank accounts, but how?

Sanjay Arora (Businessman) 18 July 2011

I had a similar problem last week. In addition to PAN Card, Kotak Bank gave a format to be signed by CA, certifying that he had scrutinized books of accounts, rent receipts etc. of the newly formed proprietorship concerned, in place of proof of address.

At first I refused to get any such document and offered an affidavit stating the forming of the firm and that I was the prop. then asked my CA when I saw that the bank would rather lose my business than forego the cert. Even the CA was surprised but then he signed it.

Its getting ridiculous....this blind adherance to documents...my business is in my father's premisis and all legal proof of address documents are in his name....does that mean I forego forming a prop. firm, if I don't have an obliging CA?