Few days back i had applied for the name approval of a newly chit fund company in Form INC-1. but ROC rejcets it and sent for resubmission error shows:-
FILL UP COLUMN 15(a) AS YES SINCE THE ACTIVITY REQUIRES THE APPROVAL OF ANOTHER REGULATORY AUTHORITY.
Now i have resubmitted the form by ticking column 15(a) as YES and name also gets approved. but i have not attached any approval letter because it can be attached while uploading FORMS INC 7, 22 and DIR 12.
Now from which regulatory authority am i required to take a approval. and is it necessarry because chit fund company is a residuary NBFC and not carrying any type of business which other main NBFC carries.
20 July 2025
Hey! About your chit fund company name approval and the ROC's query on Form INC-1, Column 15(a):
When you tick "YES" in Column 15(a), it means the activity your company proposes requires approval from another regulatory authority before company incorporation. For a Chit Fund Company, the regulatory authority is typically the Registrar of Chits or the State Government authority under the Chit Funds Act, 1982 (state-specific). Additionally, since chit funds fall under the purview of NBFC regulations, approval from Reserve Bank of India (RBI) may also be required if the chit fund company is categorized as an NBFC. Yes, this approval is necessary before or soon after incorporation because chit funds are highly regulated due to risk involved. You can attach the approval documents while filing INC-7 (company incorporation) or other relevant forms, but do ensure you actually apply and get the approval in time to avoid compliance issues. In short: Identify your State Registrar of Chits and apply for chit fund registration/approval there. Check RBI’s NBFC guidelines for chit funds — sometimes RBI approval is required if certain thresholds are met. Keep all approval documents handy for ROC filings and future inspections.
CAclubindia
