The KYC Norms for Proprietorship concern for opening of bank account makes it mandatory to have any two of the following documents:
- Registration Certificate (in case of a registered concern)
- Certificate/ licence issued by Municipal Authorities under Shop & Establishment Act or any other similar documents indicating the activities of the concern.
- Sales and Income Tax Returns
- CST/VAT Certificate
- Certificate/ Registration document issued by Sale tax/ Service Tax/ Professional Tax authorities.
- License 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
Now this means that a Chartered accountant seeking to open a bank account in his firm name - in addition to submitting a license issued by Institute of Chartered Accountants of India required to submit one more document which looks beyond any logic.
Again a web-developer working from his home as a proprietorship concern and who is not required to be registered under any of these acts mentioned above needs to register at two acts only for the sake of opening bank account, which is not only illogical and unjustified but a blatant abuse of RBI power to restrict free business in the name of KYC.
If under the law I am not required to register my business under any of the statutes mentioned above, why on earth I should be compelled to get myself registered only for opening of Bank account.
Should court should not act suo-moto to restrain RBI from issuing such guidelines, which makes it difficult to do business for proprietor acting like an agent of MNC and killing the proprietorship form of business.
