Documents Required for Proprietorship Bank Account Opening
Proprietorship firm is the most common form of business entity in India. In a proprietorship firm, the Proprietor and the Proprietorship firm are considered as one and the same for all legal purposes. However, a proprietor can open a bank account in a proprietorship firm name. In this article, we look at the documents required for opening proprietorship bank account.Documents of Proprietor
To open a bank account in the name of a proprietorship firm, the identity and address of the proprietor must first be validated by submitting the following documents. An “Officially valid document” (OVD) which includes:- Passport
- Driving licence
- Permanent Account Number (PAN) Card
- Voter's Identity Card issued by the Election Commission of India
- Job card issued by NREGA duly signed by an officer of the State Government
- Letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number.
- Utility bill, which is not more than two months old, of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
- Property or Municipal Tax receipt;
- Bank account or Post Office savings bank account statement;
- Pension or family Pension Payment Orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
- Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation; and
- Documents issued by Government departments of foreign jurisdictions or letter issued by Foreign Embassy or Mission in India.
Opening Bank Account in Sole Proprietary Firm Name
In case of opening an account in the name of a sole proprietary firm, a certified copy of an OVD as mentioned above with any two of the following documents as a proof of business/activity in the name of the proprietary firm must be submitted.- GST Registration
- Shop and Establishment Act License.
- Certificate of Practice issued by any professional body incorporated under a statute.
- Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated/acknowledged by the Income Tax authorities.
- Utility bills such as electricity, water, and landline telephone bills.
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