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Wednesday, 16 November 2011

How to Register Your Proprietorship Firm


Though A Proprietor is Not Required to Register a Proprietorship Firm In India But For Sake of Opening a Bank Account it is advised that he Should.After Latest KYC (Know your Customer) Norms as released by Reserve Bank Of India a Firm shall be Registered with some Statutory Authority for Sake of Opening Bank Account with Any Scheduled Bank in India.


RBI tightened the norms of account opening of proprietary concerns with modification in KYC Norms and Anti Money Laundering Measures. The APEX bank RBI issued circular to banks on 12.05.2010 vide their circular no. RPCD.CO.RF.AML.BC. No. 83/07.40.00/ 2009-10.

The affect of this circular stopped the hands of banks all over the country to open proprietary concerns current account. It is provision that for any business transaction they have to open current account, in which bank are not paying any interest.

The circular is addressed to the Chief Executives of all State and District Central Co-operative Banks, but the implementation made effective by all scheduled commercial banks which includes PSU , private and foreign banks.

As per circular banks should call for and verify the following documents before opening of accounts in the name of a proprietary concern:

i) Proof of the name, address and activity of the concern, like registration certificate (in the case of a registered concern), certificate/licence issued by the Municipal Authorities, sales and income tax returns, CST/VAT certificate, certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities, Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc.

ii) Any two of the above documents would suffice. These documents should be in the name of the proprietary concern.

As per circular, these guidelines will apply to all new customers, while in case of accounts of existing customers, the above formalities should be completed in a time bound manner and should be completed before December 31, 2010.


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