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Kerala - Get Chit Fund Business License or Permit

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Apply In-Person:

  1. Any valid registered Private or Public limited company intends to carry Chit Fund Business should apply for registration of the company with the District Registrar office of the Registration Department (shall be the Deputy Registrar of Chits of the respective Districts) and Sub-Registrar office (shall be the Assistant Registrar of Chits within the local limits of his jurisdiction).
  2. Link for the office contact details: Link1 AND link2 please use contact us menu for contact details.
  3. Go to the respective office.
  4. Meet the designated staff at the registration counter/desk. The applicant shall get the advice from the authority to be followed to apply for this licence.
  5. Please get information on updates / new amendment to establish the by-laws (A set of rules and regulations as per the government norms).
  6. Please collect the application form or write on a plain A4 sheet as advised.
  7. Application form can also be obtained using the following Link refer page number 33
  8. Complete the application form. Attach the entire required document as per our “Required Documents” section and submit it along with the applicable fees (trough treasury receipt / as per acceptable format) to the designated receiving authority.
  9. After receiving the application, authorities will check the submitted application and document set. If all are in place the application will be accepted.
  10. Authorities will make entries about this application in the manual record or electronically using computer. #Acknowledgement receipt will be given against every application form received. So, collect it and please keep it safe for future reference.
  11. This application will be processed further.
  12. Applicant will get update about the progress of their application through SMS in their registered mobile number or through email.
  13. This application will be verified and documents will be scrutinized.
  14. After all the prescribed documentary requirements are fulfilled, the department will forward this application to the inspector of chits / designated authority for spot inspection of the proposed registered office of the company.
  15. On the scheduled date Inspection will be carried out by the inspection team.
  16. The outcome of the inspection will be submitted as a report back to the issuing authority.
  17. Based on the outcome of the above report and other internal processing the issuing authority will make a decision.
  18. The status, viz. Approval or Rejection if any will be conveyed to the applicant through an SMS or email.
  19. If approved the licence shall be signed by the Registrar and shall bear his official seal. Along with licence, the duplicate copy of the by-laws endorsed by the Registrar will be delivered.
  20. The licence will be delivered by post to the registered office address as per the address mentioned in the application form or as per applicable norms.
  • It is advised to submit additional set of copy of the documents and get countersigned for your safety while applying with government department.
  • Visit your nearest chit fund firm in your region and consult with them for any latest update requirements.


Required Documents[edit]

  • Application form
  • Memorandum and Articles of Association.
  • Incorporation Certificate.
  • Form No. 2 regarding shares allotment.
  • Form No. 18 regarding registered office.
  • Form No. 32 regarding appointment of Directors.
  • R.O.C. Receipt for filing of form No. 2, 18, 32.
  • Bank certificate for deposit of Rs. 1,00,000/- or for the specified value as paid-up capital.
  • Resolution for appointment of foreman of the company.
  • Affidavits of the Directors regarding:-
    • Age, good health and sound mind.
    • Insolvency.
    • Non-conviction.
    • Membership / Directorship in other chit fund company if any.
  • Proof of ownership of the office premises.
  • No objection certificate from the landlord if rented.
  • Rent Receipt of premises.
  • Lay out plan of premises.
  • Photo-copies of the Election Card/Passport etc. of the Directors.
  • Net-worth certificate issued by CA of the company in respect of all the Directors of the chit fund company along with supporting documents.
  • Balance sheet(s) of the company / partnership / proprietorship.
  • Bye-laws in duplicate.
  • ID Proof of the foreman (PAN/DL/Passport/Bank Passbook)
  • Address Proof of the foreman (DL/ Passport/Bank Passbook)
  • Letter head
  • Aadhaar Card of foreman
Note:Apart from the above listed documents, authorities may ask for additional information or document. Please provide them for smooth processing.

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Office Locations & Contacts[edit]

Inspector general of registration
Department of registration, Kerala,
Phone-0471-2472118, 2472110
Contact Link1 AND link2 please use contact us menu for contact details.



  • Those who are 18 years and above are eligible to apply.
  • The applicant must not have any criminal records.
  • Business must be legally permissible.
  • The Company should have at least an amount of Rs.1,00,000/- or the amount specified in the bank as paid-up capital.
  • All Directors/Partners.
    • who are 18 years and above are eligible to apply.
    • who possess good health and sound mind.
    • who should not have been convicted in any case.
    • Should be financially sound.
  • Also the registered office should be:-
    • Having at least 150 square feet or as per state government norms of office area.
    • Well-furnished to conduct chit fund business.
    • Having an Auction Hall.
Note: Preferably, the Directors should not be related to each other.


  • Bank certificate for deposit of Rs. 1,00,000/- or for the specified value as paid-up capital.
  • Fees structure is different for different states. So, please pay as authority’s advice at the time of applying in the prescribed format.
  • Don’t forget to take the receipt for the payment.


  • If the Chit amount is Rs.5.00 lakhs Fees of 0.25% of the proposed Chit amount or Rs.250 (or the fees advised) whichever is higher should be paid.
  • If the Chit amount is Rs.5.00 lakhs and above then the fee to be paid is 0.5% of the Chit amount or Rs.10,000 (or the fees advised) whichever is lower.
  • Please refer page number 89 for fee details: link.


  • This licence or permit is valid forever until the government has any changes to incorporate.
  • In every case of amendment of by-laws, whether by addition of new-laws or by alteration or rescission of some existing by-laws by a foreman an application accompanied by a fee prescribed for the purpose affixed with a court fee stamp shall be submitted to the Registrar along with the complete by-laws, in duplicate as so amended and as proposed to be registered.

Documents to Use[edit]

Application form Link refer page number 33


Sample Documents[edit]

Please attach sample completed documents which would help other people who would like to follow this procedure.

Processing Time[edit]

The whole process shall be completed within thirty (30) days of receipt of the application.

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Related Videos[edit]

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe,
myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url " Video ID is "Y0US7oR_t3M".



  • The Certificate of Registration or the attested copy thereof shall display prominently at every place of chit business.
  • Any change in the ownership, name or place of a business of a foreman shall be notified to the concerned Registrar within 14 days of such charge.
  • Don’t forget to take all the originals of the document along with copy for applying.
  • Avoid spelling mistakes while filling the application form.
  • Ensure that the application is complete before submission.
  • Incomplete application will be rejected.
  • The failure to comply with prerequisites of the registration of a Chit Fund Business shall result in rejection of the application form.
  • Following particulars are required while framing of by-Laws:
    • The full name of foreman conducting chit business.
    • The complete address of the foreman, registered address, in the case of a company being a foreman.
    • The name under which chit business is done or is proposed to be done.
    • The full details of the working of the chit.
    • The area of operation of the chit.
    • The circumstances under which withdrawals of subscriber shall be permitted.
    • The procedure to be followed for returning the money of the subscribers in case of withdrawal, ineligibility or death of the subscriber.
    • The condition under which the transfer of a chit or the interest of a subscriber shall be permitted.
    • The full name and designation of the officer entitled to sign documents on behalf of the foreman.
    • The rate of commission to which the foreman is entitled.
    • The language in which the accounts shall be kept.
    • The mode of custody and investment of money.
    • The settlement of disputes touching or concerning the chit.

Required Information[edit]

  • Name of the foreman
  • Address of the foreman
  • Registered office address
  • Name of the company
  • Name of the Chit fund
  • Area of business
  • Mobile number
  • email ID
  • Photographs of all the Directors, duly attested by the CA
  • GST Number


Need for the Document[edit]

  • Any person or company intends to carry chit’s business shall apply and obtain this licence.
  • No centre shall operate without proper permission and licence.
  • Apply and obtain this licence for a legitimate operation.
  • As the chit fund frauds mount in recent times, the government has laid these regulations and amended them by registering these chit fund companies. So that, if there is any problem or fraudulent complaints it will be easy for the government to trace and track the culprits.

Information which might help[edit]

  • Application for Chit Fund Business shall be signed by...
    • The Foreman (individual proprietor / firm).
    • Hindu undivided family.
    • Cooperative society or a company incorporated under the companies Act.
    • Partner.
    • karta.
    • President or Secretary or any member duly authorized in this behalf, or by the principal officer managing the business, respectively.
  • However, the licence does not allow the holder to do any other trade or business.
  • Please follow the government’s announcement to avoid unnecessary actions for not following the policy.

Other uses of the Document/Certificate[edit]

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links[edit]

Please follow this link for additional information: link1 AND Link2


More information which might help people.