Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
This query is : Resolved
Quick Summary
RAKESH KUMAR
(Querist)
18 April 2026
Hello Everyone,
I have a sole proprietorship firm with Udyam Registration Certificate. I am developing a software app (library management system) in which I plan to charge monthly subscriptions from clients. I will be using Razorpay as the payment gateway.
Current situation:
- Udyam Registration Certificate available
- Turnover is zero (just starting)
- No GST registration (not required as turnover is zero)
- No Shop & Establishment registration yet
My queries:
1. Can I open a current account in PNB or Punjab & Sind Bank with only Udyam Registration Certificate as business proof? Will any additional documents be required?
2. Will zero turnover be a problem while opening a current account?
3. For Razorpay payment gateway integration, is a current account compulsory or can I use my personal savings account?
4. Is Shop & Establishment registration necessary right now or can it be done later when business grows?
Kindly guide me.
Thank You 🙏
I have a sole proprietorship firm with Udyam Registration Certificate. I am developing a software app (library management system) in which I plan to charge monthly subscriptions from clients. I will be using Razorpay as the payment gateway.
Current situation:
- Udyam Registration Certificate available
- Turnover is zero (just starting)
- No GST registration (not required as turnover is zero)
- No Shop & Establishment registration yet
My queries:
1. Can I open a current account in PNB or Punjab & Sind Bank with only Udyam Registration Certificate as business proof? Will any additional documents be required?
2. Will zero turnover be a problem while opening a current account?
3. For Razorpay payment gateway integration, is a current account compulsory or can I use my personal savings account?
4. Is Shop & Establishment registration necessary right now or can it be done later when business grows?
Kindly guide me.
Thank You 🙏
18 April 2026
1. Either GST registration or Shop & establishment license is required to open current account along with Udyam certificate.
2. No.
3. Better to have current account from beginning rather than changing it afterwards.
4. Mandatory within 30 days if business commencement.
2. No.
3. Better to have current account from beginning rather than changing it afterwards.
4. Mandatory within 30 days if business commencement.
RAKESH KUMAR
(Querist)
18 April 2026
Sir, mera kaam poora online hai, abhi zero employees hain. Main ek software/platform bana raha hoon jisme Razorpay payment gateway integrate karna hai. Razorpay ke liye Current Account mandatory hai — isliye current account chahiye. Abhi sirf Udyam Registration hua hai. Aage current account ke liye kya karna hoga?
18 April 2026
Shop & establishment registration kara lo...
With these two certificates & your individual KYC; proprietorship current account can be opened.
With these two certificates & your individual KYC; proprietorship current account can be opened.
14 November 2026
1. Documents. Under the RBI KYC Master Direction, a bank normally needs any two documents proving the proprietorship's activity. Udyam is one. A second can be a GST certificate, Shop & Establishment registration, a utility bill in the firm's name, or the bank may accept the ITR later.
• RBI allows a bank to accept only one document (such as Udyam) if it does a contact-point verification and is satisfied the business exists. Ask PNB or PSB for this if you have only Udyam.
2. Zero turnover is not a bar. Banks look at KYC, not revenue.
3. Payment gateway. Gateways like Razorpay generally allow individuals or unregistered businesses to start with a personal savings account, within KYC limits. A current account in the business name is cleaner: subscription income is kept separate, settlements are not flagged in a savings account, and you won't need to re-onboard later.
4. Shop & Establishment. Whether it is required depends on your state's Act. Many states exempt or allow simple intimation for small or home-based units with few or no employees, but some require registration within 30 days of starting. Check your state portal.
5. GST, which the earlier reply did not cover. SaaS subscriptions are services, so registration is required once turnover crosses Rs 20 lakh (Rs 10 lakh in special category states). Supplying services to other states doesn't force registration below that threshold. Registering voluntarily early also gives you a second KYC document.
Overall Summary: Udyam plus one more activity document opens a current account; with Udyam alone, ask for contact-point verification. Zero turnover is fine. Start with a current account for the payment gateway. Shop & Establishment depends on your state, and GST becomes compulsory above Rs 20 lakh in service turnover.
• RBI allows a bank to accept only one document (such as Udyam) if it does a contact-point verification and is satisfied the business exists. Ask PNB or PSB for this if you have only Udyam.
2. Zero turnover is not a bar. Banks look at KYC, not revenue.
3. Payment gateway. Gateways like Razorpay generally allow individuals or unregistered businesses to start with a personal savings account, within KYC limits. A current account in the business name is cleaner: subscription income is kept separate, settlements are not flagged in a savings account, and you won't need to re-onboard later.
4. Shop & Establishment. Whether it is required depends on your state's Act. Many states exempt or allow simple intimation for small or home-based units with few or no employees, but some require registration within 30 days of starting. Check your state portal.
5. GST, which the earlier reply did not cover. SaaS subscriptions are services, so registration is required once turnover crosses Rs 20 lakh (Rs 10 lakh in special category states). Supplying services to other states doesn't force registration below that threshold. Registering voluntarily early also gives you a second KYC document.
Overall Summary: Udyam plus one more activity document opens a current account; with Udyam alone, ask for contact-point verification. Zero turnover is fine. Start with a current account for the payment gateway. Shop & Establishment depends on your state, and GST becomes compulsory above Rs 20 lakh in service turnover.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Due date for filing return for the partner in partnership subjected to Tax Audit
- GST on reimbursement of expenses
- Visiting card purchase
- Query on effect of registration of property
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Equity Share Sale and Purchase
- Wrong CMPo8 file
- Whether output tax is taken credit by purchaser
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
