Legal procedure of Registration of chit fund

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A Chit fund company means a company managing, conducting or supervising, as foremen, agent or in any other capacity, chits According to Section 2(b) of the Chit Fund Act, 1982, "Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified of persons that every one of them shall subscribe a certain sum of money by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount". Such chit fund schemes may be conducted by organized financial institutions or may be unorganized schemes conducted between friends or The business of chit fund is legL in rajasthan and for registration one has to First obtain a certificate of incorporation from the Registrar of Companies of respective region

Advocate Tarpit Patni LawRato