Can a sole proprietorship issue public deposits?

Public Deposits means any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India.

There are some limited persons who can issue public deposit with a due permission of RBI such as banks, Non Banking Finance Companies etc. as mentioned under RBI guidelines. Hence, a Proprietorship firm cannot issue public deposits as it is a criminal offence.

Know about Sole Proprietorship Firm Registration from our experts by contacting us at support@legalwiz.in