Can a sole proprietor operate without a current account?

A sole proprietor is not required to have an account with a bank. They may carry out all settlements under transactions using cash funds only, and pay taxes using a payment slip.

Why is a current account with a bank needed?

A sole proprietor's operations without an account may be limited by several factors:

• the amount of one contract settled in cash must be less than one hundred thousand rubles;
• most companies operate on a cashless basis; without a current account, a sole proprietor narrows the range of possible business partners;
  
• the bank may suspect the entrepreneur of laundering illegal income;
  
• funds for arranging a loan and leasing are provided by the bank on a cashless basis.

Advantages of a current account for a sole proprietor:

• New clients and suppliers – a current account makes it possible to conclude contracts with any counterparties, including government authorities and corporations;
• No limits on the contract amount;
  
• Access to subsidies, participation in public tenders and procurement;
  
• Ability to connect merchant acquiring and internet acquiring;
  
• Ability to connect a payroll project;
  
• Convenience and security – the ability to manage funds via the mobile app or personal account, without using cash or visiting a bank.

Does a sole proprietor need a current account if they cooperate with companies abroad?

For sole proprietors cooperating with foreign partners, having a bank account is a mandatory requirement.

A current account can be opened at any time, at any stage of a sole proprietor's business activity.