FREQUENTLY ASKED QUESTIONS
1. Who can be a Proprietor?
–The Proprietor must be an Indian citizen and a Resident of India.
2. Will Proprietorship Firm have Certificate of Incorporation?What are the requirements to be a Director?
– Proprietorship firms do not have a Certificate of Incorporation.
3. How much money do I need to invest upfront in starting the business?
– There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.
4. How to open a Bank account for a Proprietorship firm?
– To open a bank account for a Proprietorship, Reserve Bank of India mandates that the proprietor must provide two forms of registration for the Proprietorship firm along with the PAN Card, identity proof and address proof of the Proprietor. The two forms of registration can be any two of the following: service tax registration, MSME registration, VAT/TIN/CST registration, Shop & Establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.