Opening an Accounts in bank
Raghav
(Querist) 02 May 2011
This query is : Resolved
Dear Sir,
As per our discussion with bankers we required to submit some registration paper of new entity at the time opening an account with bank.
Sir I have to know since in case of service industry or saling goods we need to have some turnover and when we cross the exemption limits then we may go for registration ( Service Tax 9 lakhs, VAT :2 Lakhs).
Sir please suggest if we do not have any this kind of paper how can we open an account in bank in case of proprietorship business.
Thanks
Advocate. Arunagiri
(Expert) 02 May 2011
If you open a office you should have registered your office as per the shop establishment act. That is enough for opening the bank account.
Raghav
(Querist) 02 May 2011
Respected Sir,
Please let me know who comes under the shop establishment act and brief details about this act. I will be obliged.
Thanks
Advocate. Arunagiri
(Expert) 02 May 2011
This is an state specific Act and hence, the provisions will differ from one state to another.
Any corporate office functioning separately from factory are covered under Shop and Establishment act,1948. If corporate office attached to a factory then it comes under factories act.
You need to take a license to run your mall,shop,Commercial Establishment issued by the Municipality Office with application form,shop layout,fee draft,NOC from Landlord.
you may search on Google for the same mentioning your state.
Guest
(Expert) 03 May 2011
I endorse both the replies of Mr. Arunagiri.
R.Ramachandran
(Expert) 03 May 2011
I do not know whether Mr. Raghav is talking about any real issue or imaginary issue.
He is already working as an Accounts Executive according to his profile.
That means his establishment is already established - either a proprietorship or partnership or whatever.
They might have already opened a current account with any of the banks.
If they want to open another bank account for either the same establishment or for an establishment to be set up afresh, it is possible to approach the bank and finish the formalities.
I really do not know what the issue is about.
For opening a proprietorship business, all that one needs is a self-declaration, the papers related to the premises of business - if it is self owned then the electricity or telephone bill received by the proprietor in his own name with the address of the premises, or if it is a leased premises then the copy of the lease deed (duly notorised) and the electricity / telephone bill of the lessor in the premises, PAN Card of the proprietor, photograph of the proprietor that is all. The bank will not ask for any other details.
malipeddi jaggarao
(Expert) 03 May 2011
I fully agree with the last para remarks of expert Mr.R.Ramachandran. In addition, this new account has to be introduced by one of the existing customers of the Bank, having satisfactorily bank dealings for more than 6 months/one year. Identity of Proprietor, address proof, proprietorship delcaration are sufficient for opening a current deposit account in a bank in the name of proprietorship concern.
Raghav
(Querist) 03 May 2011
Dear R.Ramachandran Sir,
I do not mean that being an accounts professional I do not know how to open or which documents is required to open an bank account related to any running entity.
I mean to say if any one wish to set up new entity and that have no registration certificate under state government / central government how can entity open an account as bankers are not accepting his application without these kind of registration as per rules and regulation of RBI norms.
Kindly suggest me the same.
Advocate. Arunagiri
(Expert) 03 May 2011
Any body (including the corporates) wishes to open the bank account has to provide the address proof.
Without any supporting paper he can not open the bank account. Please go through the account opening form, it will say what are the documents needed for opening the bank account.Comply with it and open the bank account.
