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Peeyush Bansal (Manager)     20 September 2012

Can i use saving account for business and start business

Dear Sir/Madam,

I am in process of starting a new e-commerce retail business, but due to, office space will be available only in Nov 1st week, I want to start the business from home. But problem I am facing is, I can't register my proprietership firm as that required a valid commercial address along with proof as per my Lawyer, who is helping me in firm registration. And as I don't have my firm register, I can not get the current account open. So in this case, I am thinking to start this business without firm registration and current account and when I get the office in Nov 1st week, then I will get the same register and open the current account. I need to know, if this is a valid way of working, or I should wait for my firm registartion and current account, and then only I should start my business ? Pls suggest...



 4 Replies

Prasun Chandra Das (Banker)     21 September 2012

I can only reply from banking point of view: If you open a savings a/c, you should not route business transactions in that a/c. If the bank finds out that you are doing this, it may stop transactions in the a/c, and/or freeze transactions in the a/c. The bank is likely to find out because new a/cs are monitored more closely than old a/cs. Alternatively, you can open a current a/c (CA) in your individual name. Some banks allow that, some banks don't. Approach a Pvt bank - they are more likely to entertain your request to open an individual current a/c.

vishak (manager)     22 September 2012

Normally propritership business is not reuired to be registered any where having small set-up not attracting (sale tax/service tax) except in case of statutoriliy required to be registered. However bank insist to produce some registration  to open a current account


(Guest)

I endorse the views of Shri Prasun Chandra Das

 

sumit123   04 September 2016

needed to open a merchant account with Indian Online ... I am not talking about the technical part, I am talking about all the time ... You will need to open a free business account with Paypal which would allow .... but I think I need to have a registered firm and a current account for operating that website. essay proofreading service


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