How do I start a Chitty business?
Let us understand the complete procedure in the following steps:
- Apply for Digital Signature and DIN numbers.
- Apply for Name approval of Chit Fund Company.
- Prepare all the documents according to Chit Fund Company objectives.
- Minimum Capital Requirement for Chit Fund Company.
- Apply for Chit Fund Company registration.
What is the process of chit fund?
A chit fund is both a savings and credit product. It bears a pre-determined value and is of a fixed duration, mostly two to three years. Each scheme admits a specific number of members whose monthly contributions adds up to the total value of the chit fund at the end of the term.
Are chit funds regulated by RBI?
Chit funds in India are not regulated by the Reserve Bank of India (RBI), nor the Securities and Exchange Board of India (SEBI). According to the Chit Funds Act, 1982, the chit funds are registered and regulated only by the respective state governments.
Is the chit fund business a banking business?
Although being a type of non-banking financial firm, the registration of chit fund businesses is excluded from registering with the Reserve Bank of India, as is the standard. This is because, unlike other NBFCs, chit funds are controlled by their regulators rather than the RBI.
What are the documents required for chit fund registration?
Mentioned below are the documents required while registering for Chit Fund Company:
- PAN card.
- ID proof.
- Bank statement/Electricity bill/Mobile bill/telephone bill – Anyone.
- Other documents as per Chit registrar.
Is chit fund money taxable?
Tax on Income from Chit Funds The dividend income earned per month is neither tax deductible nor taxable. The overall income is taxable as income from other sources. The overall loss can be claimed as business loss.
Who is the regulator of chit fund?
the Registrar of Chits
Chit funds in India are governed by the Chit Funds Act, 1982. Under this Act, the chit fund businesses can be registered and regulated only by the respective State Governments. Regulator of chit funds is the Registrar of Chits appointed by respective state governments under Section 61 of Chit Funds Act.
Is Pocketly approved by RBI?
It is categorized as a Non-Systemically Important Non-deposit taking NBFC. The Company has incorporated the FPC guidelines issued by the Reserve Bank of India (RBI) vide its Circular dated September 28, 2006 which was modified from time to time.
How do chit fund companies make money?
The money is collected from the chit group and is put up for auction every month. The investor who bids the lowest for the total sum will win the lot. A commission has to be paid to the Chit Fund Company. The surplus is distributed to all other investors.
How can I register chit in Karnataka?
Required Documents[edit]
- Application form.
- Memorandum and Articles of Association.
- Incorporation Certificate.
- Form No. 2 regarding shares allotment.
- Form No. 18 regarding registered office.
- Form No. 32 regarding appointment of Directors.
- R.O.C. Receipt for filing of form No.
- Bank certificate for deposit of Rs.