How business owner can get credit card

Hello,

I run a business online since 2010, have a current bank account in my company name, and a personal savings account in my name. I have never obtained any loans from banks, have no credit cards til date.

I would like to get a new credit card and need some advice on that.

As an employer, should my own company deduct the income tax for me and remit that tax amount to the IT department every month, or should I file on my own at the end of each financial year?

On the other hand, please advice me on getting a credit card in my company’s name.

Thanks in advance.

: Hi,

If your company is registered as a sole proprietorship company, you can report your business income as well as business losses in your personal income tax return. So, the taxation will be on an individual basis. Your company will not be considered a separate legal entity. You can deduct your business expenses from your business income before you report it and pay taxes. The income from such business is usually reported under the head ‘income from profit and gains of business or profession’. We suggest that you get in touch with a chartered account to understand taxation better.

As regards getting a Credit Card, you might need to build a Credit Score to get a Credit Card. Click here to check your Credit Score. You will have to build your Credit Score before you can get a loan or a Credit Card because this is the first thing banks look at. If you haven’t taken any loans or used a Credit Card, your Credit Score would be nil. The best way for a first-timer to build a Credit Score is to become a co-applicant for a loan. You could be a co-applicant along with your parents, spouse or a close relative who already has a good Credit Scores and who make regular and timely loan repayments. Every time they repay the loan, your Credit Score goes up. You can also try and get a Credit Card against a Fixed Deposit. This will also help you build your Credit Score. Since your company is not a separate legal entity, you cannot get a Credit Card in your company’s name. You can get a Credit Card for your name.

Click here to apply for a Credit Card.

Cheers,
BB Expert