Registration Department

Government of Puducherry

Chit Funds Registration

Requirements for registration of New Company with Registrar of Chit Fund

  1. First a certificate of incorporation from the Registrar of Companies
  2. Memorandum and Articles of Association
  3. Incorporation Certificate
  4. Form No. 2 regarding shares allotment
  5. Form No. 18 regarding registered office
  6. Form No. 32 regarding appointment of Directors
  7. R.O.C. Receipt for filing of form No. 2, 18, 32
  8. Bank certificate for deposit of Rs. 1,00,000/- as paid-up capital
  9. Resolution for appointment of foreman of the company
  10. Affidavits of the Directors regarding:-
    1. Age, good health and sound mind
    2. Insolvency
    3. Non-conviction
    4. Membership/Directorship in other chit fund company
  11. Proof of ownership of the office premises
  12. No objection certificate from the landlord
  13. Rent Receipt of premises
  14. Lay out plan of premises
  15. Photo-copies of the Election Card/Passport etc. of the Directors
  16. Photographs of all the Directors, duly attested by the CA
  17. Net-worth certificate issued by CA of the company in respect of all the Directors of the chit fund company alongwith supporting documents
  18. Balance sheet(s) of the company/ partnership/proprietorship
  19. Bye-laws in duplicate

Procedure for Registration of Chits

Inspection of the Registered Office

After all the prescribed documentary requirements are fulfilled and submited, spot inspection of the proposed registered office of the company will be carried out by the Chit Fund Department through Inspector of Chits. For this purpose, the registered office should be:-

  1. Having atleast 150 square feet of office area
  2. Well furnished to conduct chit fund business
  3. Having an Auction Hall
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 chits

After the Registrar of Chit Funds Puducherry, is satisfied that all the requirements are fulfilled a certificate for registration 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