Every business needs a Bank Account to operate its commerce, receive money from customers, and pay for its expenses. Opening a Bank Account for a Private Limited Company or an LLP is not a problem as the documents required for them is readily available after incorporation. However, when it comes to a Sole Proprietorship business, bank account opening is a little tricky.
Below you will find an indicative list of documents that your banker may ask for to open a current bank account for the sole proprietorship. However, the practice of the banks may differ despite clear guideline issued by the Reserve Bank of India (RBI) on the KYC requirement for opening the bank account. The RBI has issued Master Direction on KYC for various entities and the same is amended from time to time. Please click the following link to read the most updated KYC norms for opening of Bank Account in India.
A careful perusal of the list of documents that is acceptable for opening the current account of sole proprietorship firm, following is the most commonly used documents from the practical point of view [Please note that the list below is solely based on our practical exposure and is not a legal opinion. for the complete list kindly refer to above said Master Circular or Speak to your Banker.
- Shops & Establishment Registration
- MSME or Udyam Registration
- GST Registration Certificate
- CA Certificate (In some cases it is accepted as entity proof)
- KYC of the proprietor in all cases (Photo, PAN, Aadhar and Address Proof)