How To Open Axis Bank Current Account? Eligibility, Process, Documentation 

Pradhan Mantri Mudra Yojna Kaise

 

 

Pradhan Mantri MUDRA Yojana (PMMY)

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in . Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.

BENEFITS OF UDYAM REGISTRATION

 

Udyam Registration offers a range of compelling benefits to registered Micro, Small, and Medium-sized Enterprises (MSMEs). These advantages are instrumental in fostering their growth and development:

• Access to Government Schemes: Udyam registration is a prerequisite for MSMEs to avail themselves of various government schemes and programs the Ministry of MSME offers. These schemes include the Credit Linked Capital Subsidy, Credit Guarantee, Public Procurement Policy, and more. Registering under Udyam ensures that MSMEs can tap into these initiatives and receive essential financial support and incentives.
• Seamless Integration: The Udyam portal seamlessly integrates with other critical government systems, such as the income tax portal, GST identification systems, and government e-marketplace. This integration streamlines various administrative processes, making it easier for MSMEs to manage their financial and tax-related affairs efficiently.
• Priority Sector Lending: With Udyam registration, MSMEs become eligible for priority sector lending from banks. This special lending consideration enables them to access credit facilities more efficiently and at favorable terms, further supporting their business expansion and investment plans.
• Extended MAT Credit: MSMEs with Udyam registration are entitled to carry forward Minimum Alternate Tax (MAT) credit for 15 years instead of the previous ten years. This extension provides them additional tax benefits, facilitating better financial planning and stability for their long-term growth.
• Lower Interest Rates: One of the most significant advantages of Udyam registration is the ability to secure bank loans at lower interest rates. Typically, MSMEs with Udyam registration can avail of loans as low as 1% to 1.5%, reducing their financial burden and enhancing their capacity to invest in business expansion and innovation.

In conclusion, Udyam Registration serves as a gateway for MSMEs to unlock a host of benefits and support the government provides.

DOCUMENTS REQUIRED FOR OPENING THE CURRENT ACCOUNT

There are several documents needed as per the constitution of your business , whereas we will discuss about the basic documents needed:-

1) Proprietor/ Individual:- A proprietorship firm is a business owned by a single person or individual. In case of Proprietor/Individual, we would the below mentioned documents:-

PAN CARD

AADHAAR CARD

PASSPORT SIZE PHOTOGRAPHS

UDHYOG AADHAR

GST REGISTRATION( If available)

BUSINESS ADDRESS PROOF

2). Partnership:- A Partnership firm is a type of business which is owned by more than one person but not more than 20 persons. A partnership   can be registered Partnership or unregistered partnership.  In case of Partnership, we need the below mentioned documents

PAN CARD OF FIRM

PARTNERSHIP DEED 

AADHAAR CARD+ PAN CARD OF PARTNERS

PASSPORT SIZE PHOTOGRAPHS

UDHYOG AADHAR

GST REGISTRATION( If available)

BUSINESS ADDRESS PROOF

3). Pvt. Ltd./LTD.:- Pvt. Ltd/ Ltd. companies are governed under the companies act and is registered with the ministry of corporate affairs(www.mca.gov.in) . The below mentioned documents are required for opening the current account.

PAN CARD OF COMPANY

MOA/AOA OF COMPANY

CERTIFICATE OF REGISTRATION 

CERTIFICATE OF INCORPORATION

AADHAAR CARD+ PAN CARD OF DIRECTORS

DIN NUMBER OF DIRECTORS

PASSPORT SIZE PHOTOGRAPHS

UDHYOG AADHAR

GST REGISTRATION( If available)

BUSINESS ADDRESS PROOF

HOW TO CHOOSE YOUR CURRENT ACCOUNT

 HOW TO CHOOSE YOUR CURRENT ACCOUNT

while opening the current account with any of the bank,  we should keep the following factors in mind. a good choice of current account can help in growing your business. It also helps in reducing the business expenses. some of the factors are as below:-

1). Total expected turnover and number of transactions-different banks provide the different type of current account to their customers. The same helps the businessman in smooth functioning of the current account. As if you are having large number of cash transactions , you can choose the current account which allows you which high value of cash transactions,

2). Banks Location:- In today's world where everything is shifting to the online. Many people think that the branch location doesn't matter. Whereas in practicle the location of the branch plays a major role in your business. you have to choose a branch which is near to your business premises or Residence.

3).Type of transactions in your business:- while choosing a good bank and good type of current account as per your business needs , you must give a due importance to the type of transactions needed in your business. As if your business needs lots of transactions in NEFT/RTGS, then you should look for the bank which is providing the low cost or NIL charges for the NEFT/RTGS/IMPS. 

4). Internet Banking Interface:- While choosing the Current account for your business, you must keep in mind the requirement of a simple yet power packed internet banking interface. You must choose a current account which gives you the access for NEXTGEN Banking.

5). Charges:- while deciding on your banker you must compare the charges of different facilities and services in your account. These charges could be , Cheque Book Charges, Cheque Bouncing Charges, Non- Maintenance Charges, Ledger Folio Charges etc.

There are several other factors which could be a deciding factor while choosing your banker who can help you in your Business Growth.

CURRENT ACCOUNTS - ALL YOU NEED TO KNOW ABOUT CURRENT ACCOUNT

 Hello friends

In the process of starting your business in MSME( micro, small and medium enterprises), earlier we have learned about the process of registering for UDHYOG Aadhar for your business for different type of businesses and the documents required. after registering for the UDHYOG Aadhaar, our next step is to find open the current account for your business. In this article we will make a detailed analysis of the process of the opening of current account. we will also guide on how to choose the best suited current account for your business and what are the documents your prospective banker can demand from you for opening the current account.

WHAT IS CURRENT ACCOUNT?

Basically the current account is a account which is used for the purpose of the business.A Current Account is a non-interest-bearing bank account, mainly used to service the needs of the businesses. Current Accounts allow for more transaction limits on cash deposits and withdrawal within or outside city.

BENEFITS OF CURRENT ACCOUNT ?

The current account provides you the access of unlimited transactions as per the needs of the business. The current account holder can have access of various facilities of transactions through his account for inwards as well as payments. The current account holder also gets the access for international payments and receipts pertaining to its business.

WHO CAN OPEN A CURRENT ACCOUNT?

Any businessman can open a current account. whereas  the facilities and documentation are different for different type of the businesses. It depends on the nature of the business, constitution of the business, place of the business.

WHAT TO LOOK FOR WHILE OPENING THE CURRENT ACCOUNT

while opening the current account with any of the bank,  we should keep the following factors in mind. a good choice of current account can help in growing your business. It also helps in reducing the business expenses. some of the factors are as below:-

1). Total expected turnover and number of transactions-different banks provide the different type of current account to their customers. The same helps the businessman in smooth functioning of the current account. As if you are having large number of cash transactions , you can choose the current account which allows you which high value of cash transactions,

2). Banks Location:- In today's world where everything is shifting to the online. Many people think that the branch location doesn't matter. Whereas in practicle the location of the branch plays a major role in your business. you have to choose a branch which is near to your business premises or Residence.

3).Type of transactions in your business:- while choosing a good bank and good type of current account as per your business needs , you must give a due importance to the type of transactions needed in your business. As if your business needs lots of transactions in NEFT/RTGS, then you should look for the bank which is providing the low cost or NIL charges for the NEFT/RTGS/IMPS. 

4). Internet Banking Interface:- While choosing the Current account for your business, you must keep in mind the requirement of a simple yet power packed internet banking interface. You must choose a current account which gives you the access for NEXTGEN Banking.

5). Charges:- while deciding on your banker you must compare the charges of different facilities and services in your account. These charges could be , Cheque Book Charges, Cheque Bouncing Charges, Non- Maintenance Charges, Ledger Folio Charges etc.

There are several other factors which could be a deciding factor while choosing your banker who can help you in your Business Growth.

DOCUMENTS NEEDED WHILE OPENING THE CURRENT ACCOUNT

There are several documents needed as per the constitution of your business , whereas we will discuss about the basic documents needed:-

1) Proprietor/ Individual:- A proprietorship firm is a business owned by a single person or individual. In case of Proprietor/Individual, we would the below mentioned documents:-

PAN CARD

AADHAAR CARD

PASSPORT SIZE PHOTOGRAPHS

UDHYOG AADHAR

GST REGISTRATION( If available)

BUSINESS ADDRESS PROOF

2). Partnership:- A Partnership firm is a type of business which is owned by more than one person but not more than 20 persons. A partnership   can be registered Partnership or unregistered partnership.  In case of Partnership, we need the below mentioned documents

PAN CARD OF FIRM

PARTNERSHIP DEED 

AADHAAR CARD+ PAN CARD OF PARTNERS

PASSPORT SIZE PHOTOGRAPHS

UDHYOG AADHAR

GST REGISTRATION( If available)

BUSINESS ADDRESS PROOF

3). Pvt. Ltd./LTD.:- Pvt. Ltd/ Ltd. companies are governed under the companies act and is registered with the ministry of corporate affairs(www.mca.gov.in) . The below mentioned documents are required for opening the current account.

PAN CARD OF COMPANY

MOA/AOA OF COMPANY

CERTIFICATE OF REGISTRATION 

CERTIFICATE OF INCORPORATION

AADHAAR CARD+ PAN CARD OF DIRECTORS

DIN NUMBER OF DIRECTORS

PASSPORT SIZE PHOTOGRAPHS

UDHYOG AADHAR

GST REGISTRATION( If available)

BUSINESS ADDRESS PROOF

What is Udyog Aadhar Benefits?

Udyam Registration (earlier known as Udyog Aadhar) is a government registration process that certifies MSMEs with a unique identification number and a certificate. The sole motive behind the launch of the Udyam Registration was to grant benefits to all the MSMEs registered under this process. If you own a medium, minor, or micro-enterprise, you should consider registering your MSME via Udyam Registration to reap countless Udyam Registration benefits.

Benefits of Udyog Aadhar/ Udyam Registration

• Anyone may obtain the Udyam Registration for the enterprise.
• Udyam Registration/ Udyog Aadhar Registration will be an enterprise’s permanent Registration and primary identification number. There will be no need for renewal of Registration.
• The process for Udyam Registration is fully digitalized and Paperless. There is no need to upload any document, and it’s based on self-declaration.
• Any activities, including manufacturing, service, or both, may be specified or added in one Registration.
• The registration process is free. No Costs or Fees are to be paid to anyone.
• An e-certificate, namely, the “Udyam Registration Certificate.” shall be issued online on completion of the registration process. This certificate has a dynamic QR Code from which details about the enterprise can be accessed.
• The online system is fully integrated with Income Tax and GSTIN  systems, and details on investment and turnover of enterprises are taken automatically from Government databases.
• Along with the Udyam Registration, Enterprises may simultaneously register themselves on GeM (Government eMarket place, a portal for G to B) & SAMADHAAN Portal.
• MSMEs can also be onboard on the TReDS Platform through three available platforms.

Benefits offered to Udyam Registered Entity.

Following are some of the Udyam Registration benefits that MSMEs would be entitled to upon Registration.

• The Udyam Registration may also help MSMEs in availing the benefits of Schemes of the Ministry of MSMEs :
  • Credit Guarantee Scheme
  • Public Procurement Policy
  • Additional edge in Government Tenders
• Udyam Registered MSME becomes eligible for priority sector lending from Bank.
• Bank loans for registered MSMEs are available at an attractive interest rate.
• Udyam Registered MSMEs are qualified to get bank loans without collateral or security.
• Registered MSMEs are eligible for up to a 50% incentive for patent registration of their business idea and process.
• Registered MSMEs can receive up to a 1% discount on the interest they pay at any bank or financial institution.
• Under numerous government programs, registered MSMEs can receive industrial promotion subsidies to spread awareness of their firm worldwide.
• When a registered MSME provides goods or services to another company, and if the payment isn’t made within 45 days, the government gives the MSMEs the authority to levy compound interest on the unpaid balance each month. And the interest that must be paid is three times the rate that the RBI has authorized.
• Particularly in the case of manufacturing facilities, registered MSMEs are also qualified for rebates on Electricity.
• ISO certification costs are expensive. However, the government provides reimbursement benefits to MSMEs seeking ISO 9000/ISO 14001 Certification.
• Only registered MSMEs are eligible for the maximum 15-year extension of the minimum alternate tax (MAT) credit, as opposed to the standard 10-year extension for all other companies.
• Since the Udyam Registration Portal is directly connected to several governments’ e-marketplaces and State Government portals for issuing tenders, registered MSMEs can receive additional assistance and a boost in acquiring government contracts.
• Licensing, approvals, and registrations are accessible.
• Special considerations are given to international trade
• Production/manufacturing sectors have particular reservation policies
• Direct tax laws rule exemption
• Subsidy on NSIC performance fees and credit rating
• Barcode registration subsidy