Our Offices Location

Delhi
Gurugram
Mumbai
Lucknow
Jaipur
Kolkata
Allahabad
PREACH LAW LLP
Kolkata Office at
Chamber No.215, High Court Of Kolkata West Bangal -: 700001
PREACH LAW LLP
Opposite Road No.3, GTI Area,
Sikar Road, Jaipur, Rajasthan - 302013
PREACH LAW LLP
Office at: 805-B, Sector-K,
Ashiana, Lucknow, Uttar Pradesh, India,
PREACH LAW LLP
Office at: Chamber no.-145,
Shaheed Sukhdev Singh Block,
Near Gate No-1,District Court, Gurugram.
PREACH LAW LLP
(Advocates & Attorney)
Reg. Office:E-111-B, Nawada Housing Complex,
Uttam Nagar, New Delhi-110059
PREACH LAW LLP
Antop Hill Ware Housing Co. Limited,
Unit No. C-339, V.I.T. College Road,
Wadala (East), Mumbai - 400 037
PREACH LAW LLP
Allahabad Office at
138-A/1,Ram Priya Road,
Prayag Allahabad, Uttar Pradesh
  • Delhi
    PREACH LAW LLP
    Delhi Office at
    Plot No.B-34, Second Floor, Arjun Park, South West Delhi, New Delhi – 110043, India
  • Gurugram
    PREACH LAW LLP
    Gurugram Office at
    Chamber no.-145, Shaheed Sukhdev Singh Block, Near Gate No-1,District Court, Gurugram.
  • Mumbai
    PREACH LAW LLP
    Mumbai Office at
    Unit No. C-339, V.I.T. College Road,
    Wadala (East), Mumbai - 400 037.
  • Lucknow
    PREACH LAW LLP
    Lucknow Office at
    805-B, Sector-K, Ashiana, Lucknow, Uttar Pradesh, India,
  • Jaipur
    PREACH LAW LLP
    Jaipur Office at
    Opposite Road No.3, GTI Area, Sikar Road, Jaipur, Rajasthan - 302013
  • Kolkata
    PREACH LAW LLP
    Kolkata Office at
    Chamber No.215, High Court Of Kolkata West Bangal -: 700001
  • Allahabad
    PREACH LAW LLP
    Allahabad Office at
    138-A/1,Ram Priya Road, Prayag Allahabad, Uttar Pradesh

Chit fund Company

Chit fund Company

In the context of sub section (b) of section 2 of Chit Fund Act, 1982, Chit Fund/Chit/ Chitty/Kuri under which a person enters in to an agreement with a specified number of persons that every one of them subscribe a certain sum of money by way of periodical installment over a definite period and that each such subscriber shall, in his turn, as determined by lot or auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.There are three types of chit funds in India.

Chit Funds run by State Government This kind of chit funds are run by state governments. These types of chit fund are completely transparent like Kerala State Financial Enterprise and Mysore Sales International Limited are examples of these types of chit funds.

Private Register Chit Funds In this category there are number of privately held register chit fund Company available in India. These funds are registered as per Chit Funds act 1982.

Unregistered chit Fund Company It is illegal to run by unregistered chit fund companies. However, you will find many unregistered chit funds across the country. These funds are usually run by a closed group such as relatives, friends, neighbors etc.

Documents required for Chit Fund Company

Primary requirement

  • 1. First obtain a certificate of incorporation from the Registrar of Companies for operating Chit Fund Companies in India.
  • 2. Minimum capital required for the commencement of Chit Fund business unless it has a paid-up capital of not less than Rs.100000/
  • 3. Visit Registrar of Chit Fund after incorporation/ registration of New Co.
Secondary requirement
  • a) Memorandum and Articles of Association
  • b) Incorporation Certificate
  • c) Form No. 2 regarding shares allotment.
  • d) Form No. 18 regarding registered office.
  • e) Form No. 32 regarding appointment of Directors.
  • f) R.O.C. Receipt for filing of form No. 2, 18, 32.
  • g) Bank certificate for deposit of Rs.1,00,000/- as paid-up capital.
  • h) Resolution for appointment of foreman of the company.
  • i) Affidavits of the Directors regarding
  • Age, good health and sound mind;
  • Insolvency;
  • Non-conviction
  • Membership/Directorship in other chit fund company.
  • j) Proof of ownership of the office premises.
  • k) No objection certificate from the landlord.
  • l) Rent Receipt of premises.
  • m) Lay out plan of premises.
  • n) Photo-copies of Ration Cards of the Directors.
  • o) Photographs of all the Directors duly attested.
  • p) Papers regarding financial soundness of the Directors
  • Proof of property, if any;
  • Assessment order, if any;
  • Balance sheet(s) of the company whether partnership or proprietorship;
  • Other financial documents.
  • q) Form CF-1 in duplicate (application for registration)
  • r) Bye-laws in duplicate
  • s) Cash Voucher for Rs.50/- (Bye-laws fee).
Basic requirements for approval of first BYE-LAWS
  • 1. All Directors/Partners should be adults, possess good health and sound mind, should not have been convicted in any case, and should be financially sound. Preferably, the Directors should not be related to each other.
  • 2. The Company should have at least an amount of Rs.1,00,000/- in the bank as paid-up capital.
List of documents to be submitted at the time of approval of BYE-LAWS
  • 1. Form CF-1
  • 2. Bye-laws (in duplicate).
  • 3. Form regarding details of company’s business and deposit of fee.
  • 4. Certificate of Registration in Form CF-II (in duplicate).
  • 5. Bye-laws fee amounting to Rs. 50/- for each Bye-law to be deposited in cash with the Cashier.
  • 6. Residential proof of Directors/Foreman in the shape of ration card, election I-Card, or passport.
Inspection of proposed registered office by Inspecting Officer

When all are the prescribed requirements are fulfilled, spot inspection of the proposed registered office of the company will be made by the Chit Fund Department through an Inspecting Officer.For this purpose, the registered office should be

  • ● Havingat least 150 square feet of office area.
  • ● Well-furnished to conduct chit fund business.
  • ● Have an Auction Hall.
  • ● A sign board displayed on the front side of the premises.
  • ● Preferably, the company should also display the registered groups with it showing tickets and monthly subscription and the chit value.
  • ● In case any vacancy is likely to come up in a group, this may also be displayed.
Drafting / Framing of bye-laws

The Bye-Laws submitted for registration shall contain the following particulars

  • 1. The full name of foreman conducting chit business.
  • 2. The complete address of the foreman, registered address, in the case of a company being a foreman.
  • 3. The name under which chit business is done or is proposed to be done.
  • 4. The full details of the working of the chit.
  • 5. The area of operation of the chit.
  • 6. The circumstances under which withdrawals of subscriber shall be permitted.
  • 7. The procedure to be followed for returning the money of the subscribers in case withdrawal, ineligibility, or death of the subscriber.
  • 8. The condition under which the transfer of a chit or the interest of a subscriber shall be permitted.
  • 9. The full name and designation of the officer entitled to sign documents on behalf of the foreman.
  • 10. The rate of commission to which the foreman is entitled.
  • 11. The language in which the accounts shall be kept.
  • 12. The mode of custody and investment of money.
  • 13. The settlement of disputes touching or concerning the chit.
  • 14. On receipt of application, the Registrar shall examine the application and Bye laws in order to satisfy himself that the bye-laws are
  • In conformity with the Chit Fund Act, 1982 and Rules;
  • Suitable for carrying out the object of the chit;
  • Suitable for carrying safe and fair conduct of the business.
  • And shall grant a certificate of registration in Form CF-II.
Amendment of BYE-LAWS

After the Bye-laws have been registered, the chit fund company can apply for the amendment of these bye-laws, if necessary.

Documents required for amendment of BYE-LAWS

  • ● Application alongwith a Court fee stamp of Rs.5/-
  • ● Approved Bye-laws (in original)
  • ● Proposed Bye-laws (in duplicate).
  • ● When the proposed amendments in Bye-laws are approved, one copy of Bye-Laws duly endorsed for registration of amendment will be issued to the company. No application for amendment of Bye-laws will be entertained, if the chit group of such Bye-laws has commenced. Under prevailing practice of the departmentamendment of bye-laws is allowed only once.
  • ● After the Registrar, Chit Funds Delhi is satisfied that all the requirements are fulfilled; a certificate for registration of first Bye-laws will be issued to the company. The Certificate of registration or the attested copy thereof shall be displayed prominently at every place of chit business.
Our services for establish your proposed Chit Fund Company
  • Name reservation for your proposed Chit Fund Company
  • ● Digital Signature Certificate (DSC)
  • ● Director Identification Number (DIN)
  • ● Drafting of MOA & AOA
  • ● MCA Government Fees and XBLR filling
  • ● Obtain Corporate Identification Number (CIN)
  • ● PAN No. of Company
  • ● Drafting Bye-Laws of Chit Fund.
  • ● Filling Chit Fund application before Registrar of Chit Fund
  • ● Submission report to registrar of chit fund time to time.
  • ● GST Registration.
  • ● VAT & CST Registration.
  • ● Drafting Lease Deed and its registration.
  • ● Compare your business entity with NIDHI Company.
  • ● Trademark search and registration
  • ● Assistance to open your current account
  • ● Assistance for Seed Capital / Angel Investor.
  • ● Assistance to inspection of Chit Fund registered office.
  • ● Amendment in Bye-Laws
  • Certificate of the Registration

Request a Call Back

* Enter name * Enter Email * Enter Phone Number * Enter Location * Enter your message

Our Clientale

cs
cs
cs
cs
cs
cs
cs
cs
cs
cs


cs
cs
cs
cs
cs
cs
cs
cs
cs

© 2015-2021. Preach Law LLP All Rights Reserved

Top