Partnership firm

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  1. Bhavisha186

    Bhavisha186 New Member

    huf has open a saving account , but now they want to start a business , registration is pending & bank will not open current account , is there any option? or should wait....
     
  2. ZED

    ZED Well-Known Member

    Why bank does not want to open a current account?
    Is the HUF deed ready? PAN available?
    If deed and PAN is available , and now it also got a saving account, the HUF may start undertaking some activities. It is not necessary to wait.

    The HUF will not be able to transact business properly w/o a current account as saving bank account is not primarily for business purposes and the number of transactions are also limited as compared to current.
    Try in some other bank?
     
  3. Bhavisha186

    Bhavisha186 New Member

    As they ask / required govt. registration certificate.
    Bank is already open saving account on the name of karta, & karta wan't to run business on other name under the this HUF. karta have pan of his name as huf .
    detail like this _ Mahesh suthar (HUF)
    Saving account is also open on this account. but now mr. mahesh run a business as 'POPULAR STUDIO'
    my que. is - is it possible to run business as 'popular studio' with pan - mr.mahesh suthar (huf)
     
  4. ZED

    ZED Well-Known Member


    It should not be done. It can be treated as business of HUF and not the business of Mr. Mahesh.

    One thing can be done, we can show that the expenses or incomes, as the case maybe, are being reimbursed to Mr Mahesh, or reimbursed by Mr.Mahesh (in his individual capacity) for paying,or accepting the money from third parties .

    Payment to Mr.Mahesh's personal account should be made by the HUF via bank when the HUF gets its bank account for transacting commercially.

    I further invite suggestions from the following experts for approval of my view aswell as sharing alternative views.
    @Karan Batra ,and @V K Khanna
     
  5. Karan Batra

    Karan Batra Well-Known Member

    Yes, the Bank will ask for some form of govt. registration

    It is a pre-requisite for opening a current account.

    If you are doing a business - I would advise you to get the registration done.

    PS: As per Bank norms - you are not allowed to do business transactions from savings account
     
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