Chit fund registration in individual name

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 hi,

I want to register a chit fund in Karntaka in individual name, can some body guide me on the process and the procedure?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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17 March 2012 As a first step in the formation of a group or scheme, prior sanction needs to be obtained from the Registrar. The prior sanction is granted at the filing of an application and at the payment of fees. Subsequently the company needs to file a chit agreement with every member in that particular group. Once the chit agreement is filed and approved, the certificate for commencement of the scheme is issued. The Company needs to deposit 100% of the chit value with the Registrar prior to the commencement of the scheme. This deposit will be refunded on the successful completion of the chit cycle. Normally, in the first month of each scheme, there will be no auction, and the amount collected from the members would be taken by the company to compensate for the deposit made. However, as this would be considered unfair to the members (who will lose the entire contribution in that particular month) the Foreman also takes part in the group and makes regular monthly contributions to the scheme. Therefore, in essence, the Foreman is the bidder in the first month.

There is no subsequent requirement for renewal of the registration. Once the scheme commences, company has to file the minutes of each auction with the Registrar of chits every month. A registered chit fund needs to have its accounts audited by a qualified Chartered Accountant. The fixed deposit made at the beginning of the scheme will be refunded only on the submission of the audited Balance Sheet and Statement of Accounts.

for more information:

http://chitfundkarnataka.com/index.php?option=com_content&view=article&id=6&Itemid=11

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 Thank you Ramesh, but the client is interested in opening the chit fund in his individual name, is this possible? because the given details are for the company.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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19 March 2012 Read the below mentioned link:

http://chitfundkarnataka.com/index.php?option=com_content&view=article&id=6&Itemid=11

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