When you apply for an SME loan, one of the business KYC documents you need to provide is proof of business address.
“What document can I use to validate my business address?” is one of the most common questions we get asked as credit experts. So, let’s discuss this.
What is a Proof of Business Address?
Your business address is the physical location where you conduct business. When you apply for an SME loan, lenders ask you for documentation to establish proof of business address, to ensure that your business place is, in fact, the address you have told them. Your proof of business address must be a legally recognized document issued by a central, state or municipal authority.
Which documents can I use to establish my proof of business address?
When applying for an SME loan, you may fall into two categories, businesses with a GST registration and those without GST registration. Below are the most commonly used proofs of business addresses submitted with SME loan applications.
1. For GST registered businesses:
- If you are still operating out of the location used on your GST certificate, then your proof of business (your GST certificate) also establishes your proof of business address. Your “Address of Principal Place of Business” is used as your business address.
- If, however, your business address is now different from your registered principal place of business, then you need to submit an alternative document to validate your company address. In such a case, the Rental Agreement you signed will help you establish your business address.
E.g., If the “Address of Principal Place of Business” on your GST certificate is a location in Delhi and you moved your business to Punjab, then you need to submit a copy of the signed Rental Agreement for the location in Punjab to establish your proof of business address.
This Rental Agreement can be in your name (if your business constitution is a Proprietorship) or in the name of the company, firm, Director of the company, or the Partners to be a valid proof of address.
- Alternatively, if your company address is now different from your “Principal Place of Business” and you own the property, you can submit the following to establish proof of business address:
- Your electricity bills
- The registration agreement (Sale Deed)
- Your property tax receipt
2. For non-GST registered businesses:
If you don’t have a GST registration, then you can use any other valid Business Proof as your proof of company address. These include*:
- CST/ VAT/ Service Tax Certificate
- Registration certificate/license issued by Municipal authorities such as Shop & Establishment certificate
- A license issued under Indian Medical Council
- A license issued by Food and Drug Control Authorities
*This is not an exhaustive list.
Here is a larger list of acceptable documents to establish proof of business address.
When you apply for a business loan using CreditEnable’s technology platform, we tell you upfront what supporting documents you will need to apply for the loan. This way, you have enough time to get the required documents together, including updating any expired ones and making digital copies of the ones you already have, before submitting your business loan application.
The basic individual and business KYC documents you’ll need are your Aadhaar, PAN (and Company PAN, if applicable), and your bank statements from the last 12-months.
After we check your eligibility for a business loan and assess your business and financial requirements based on the information you provided, our award-winning lender-matching algorithm matches you with the most appropriate lender partner for your financial needs. Then we send our lender partner your complete application package, including all your documents, so that they can efficiently conduct their credit assessments and you get your loan fast!
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