List of Indian Payment Gateway documents you need to know to invest in India www.deekpay.com

Main types of business in India

1. LLP (Limited Liability Partnership)

An LLP is a combination of a corporation and a partnership. As the name suggests, the partners involved in the business have limited liability. This simply means that the personal assets of the partners are not used to settle debts under any circumstances. Typically, audit firms, IT companies, dental practices and business consultancies register LLPs.

2. NGO

NGO stands for Non-Governmental Organisation. Such organisations are non-profit institutions that operate independently and are not subject to governmental obligations; NGOs are established at the local, national or even international level to achieve common political or social goals.

For example, Goonj is a company inIndiaNon-governmental organisations that carry out humanitarian assistance, disaster relief and community development in several states. Another good example is Amnesty International. This is an international NGO that aims to end human rights violations.

3. Private limited companies

A limited company or a private limited company is a company run by a small number of people. Such companies do not issue shares to the public for investment. A common example of a private Ltd. Ltd. is Google India Pvt. Ltd.

4. Partnership

A partnership firm or business is a company in which an agreement exists between two or more individuals who are co-owners. Everything from income and losses to liabilities within the organisation are distributed in a partnership arrangement.

5. Listed companies

A listed company is an organisation that issues shares to the public with limited liability. Common examples of listed companies are SAIL Ltd, ONGC Ltd. and BHE Ltd.

6. Sole proprietorships

A sole proprietorship is a business entity that is owned, controlled and managed by a single individual who is responsible for all profits and losses generated by the business. Typically, small business owners (e.g., local clothing shops, freelancers, consultants, etc.) register this type of business.

7. Trust

A trust is a relationship in which the principal allows the trustee to hold title to assets, such as cash or property, for the benefit of a third party, usually a family member (beneficiary). Trusts are created primarily to legally protect the assets of the principal.

8. HUF (Hindu Undivided Family)

A Hindu undivided family is a type of business in which all individuals are direct descendants of a common ancestor, including wives or unmarried daughters.

What is KYC?

KYC stands for Know Your Customer. It's a way for banks and other NBFC The main purpose of KYC is to prevent fraud and only allow genuine customers to join the platform. Only if the KYC process is successful can a customer access a company's products or services.

Usually, the client has to submit government-issued documents such as proof of identity, address, full name, and date of birth. These documents are then verified against official records and the results are announced. Fortunately, for most businesses, all of this is done online (eKYC).

Recommended Reading:Non-Banking Financial Corporation of India NBFC

What is KYB?

KYB representatives know your business. Think of KYB as the business counterpart to KYC. In KYB, the business acts as the customer and the other company (host) verifies their identity. Additionally, in a KYB situation, the business may have to provide more documentation than a single individual.

For example, as a business, a payment gateway may require you to submit the following documents:

certificate of registration Business Name Unique Identifier Date of Establishment Place of business Nature of business

Similar to KYC, most businesses integrate the eKYB solution. This allows businesses to submit all documents online and instantly verify their identity, no matter where they are.

Why do payment gateways need KYC/KYB?

Payment GatewayThe main purpose is to allow merchants to accept, process, settle and manage payments. As this involves confidential user data, business data and most importantly monetary assets, the risk of fraud increases. However, using the KYC/KYB process, businesses can ensure that their customers are indeed who they claim to be and no one else. In this way, businesses can protect themselves and their customers from money laundering and other types of fraud.

Recommended Reading:What is a payment gateway?

Type of business and required documents

Below are the documents required for the different types of business:

Business Type Proof of Business Documents Supporting Documents Limited Liability Partnership / Private Limited Company / Listed Company Proof of Business Identity Proof of Business Existence Proof of Business Owner and Authorised Signatory Identity Certificate of Incorporation Certificate of Income Tax Registration (Company) PAN Card) Government-approved identification (e.g. Aadhar Card/Voter's Card/DL/Passport etc.) Proof of identity and existence of sole proprietorship Proof of operation of business Proof of identity of business owner Proof of address of business owner VAT registration or Shops and Establishment Certificate or Trade Licence, TIN or Sales Tax Registration or GST Certificate Current Account Company Bank Statement (for last three months) or voided cheque or clearing account front page Income Tax Registration (PAN Card) Government Approved Owners Proof of identity and address (e.g. Aadhar Card/Voter Card/DL/Passport). Proof of partnership Proof of existence of the business Proof of operation of the business Proof of identity of the owner and authorised signatories of the business Proof of registration of the partnership deed Sales Tax Registration or any of the VAT/TIN Registration or Shop and Establishment Certificate or Trade Licence Income Tax Registration (PAN card for companies) Statement of current account (for last three months) or cancelled cheque or clearing account front page Government approved proof of identity (e.g. Aadhar Card/Voter's Card/DL/Passport etc.) Authorised Signatory PAN Card Details. Proof of identity and existence of the trust/NGO business Proof of existence of the business Proof of operation of the business Proof of identity of the owner and authorised signatory Registered Trust Deed Sales Tax Registration or VAT/TIN Registration, Trade Licence etc. Income tax registration (company PAN card) Current account statement (last three months) or cancelled cheque or clearing account front page Government approved identity proof (e.g. Aadhar card/voter's card/DL/passport etc.) Authorised signatory PAN card details

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