435+ Lawyers are online 
Legal advice regarding finance startup
07-Jul-2023 (In Startup Law)
Hi,
I wanted to start a small money lending business like daily collection finance business,
where borrowers will have to repay the amount on daily basis.
For example, for 9000 debt, 1000rs will be the interest, (10,000 total amount), borrowers will be paying 100rs per day and complete it in 100 days.
I have 2 doubts regarding this,
1. What are the legal documents that are required to register this business (proprietorship firm)
2. What kind of assets or documentation should i collect from the borrowers for security purpose or is there any other way to safeguard my money?
Please let me know.
Thanks
Dear client, Greetings. New business ideas can only be started in Startup category, for example like Ola or Zomatto. Only if you lend your money and get maximum 2% interest per month. You can register with Tamilnadu Registration Act and give a mortgage loan. Otherwise,if you collect interest as you said, you will come under the money laundering act,2002
Helpful?
Adv. Rajinikanth
Chennai | 25+ Answers
CONTACT NOW
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
Connect with top Startup lawyers for your specific legal issue
No Comments! Be the first one to comment.
"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."
