A Company is the most acknowledged and accepted form of Business Structure worldwide. Not only it attracts investors but also encourages the entrepreneurs to represent their business in a form which is common and familiar to all. Further, it provides other benefits too such as that of having a perpetual succession and limited liability. Since a company has a separate legal identity from that of its promoters, it is capable of holding funds and properties and to sue and be sued in its own name. It is also eligible to borrow funds in different forms such as loans, debentures, etc.
A Chit Fund Company is a company that manages, conducts and supervises chit schemes for an “organising charge” as their source of their income. It is very important to know the concept of Chit Fund and how it works before starting a Chit Fund Company. Although it is a class of NBFC, it is exempted from the requirement of being registered under the Reserve Bank of India Act. A license for carrying on this business from Chit Registrar of respective State is required instead.
20 to 30 working days subject to ROC processing time