List of documents to be submitted at the time of approval of BYE-LAWS:

1. Form CF-1
2. Bye-laws (in duplicate).
3. Form regarding details of company’s business and deposit of fee.
4. Certificate of Registration in Form CF-II (in duplicate).
5. Bye-laws fee amounting to Rs. 50/- for each Bye-law to be deposited in cash with the Cashier.
6. Residential proof of Directors/Foreman in the shape of ration card, election I-Card, or passport.

Inspection of proposed registered office by Inspecting Officer:

When all are the prescribed requirements are fulfilled, spot inspection of the proposed registered office of the company will be made by the Chit Fund Department through an Inspecting Officer.For this purpose, the registered office should be:-

• Havingat least 150 square feet of office area.
• Well-furnished to conduct chit fund business.
• Have an Auction Hall.
• A sign board displayed on the front side of the premises.
• Preferably, the company should also display the registered groups with it showing tickets and monthly subscription and the chit value.
• In case any vacancy is likely to come up in a group, this may also be displayed.

Drafting / Framing of bye-laws:

The Bye-Laws submitted for registration shall contain the following particulars:–

1. The full name of foreman conducting chit business.
2. The complete address of the foreman, registered address, in the case of a company being a foreman.
3. The name under which chit business is done or is proposed to be done.
4. The full details of the working of the chit.
5. The area of operation of the chit.
6. The circumstances under which withdrawals of subscriber shall be permitted.
7. The procedure to be followed for returning the money of the subscribers in case withdrawal, ineligibility, or death of the subscriber.
8. The condition under which the transfer of a chit or the interest of a subscriber shall be permitted.
9. The full name and designation of the officer entitled to sign documents on behalf of the foreman.
10. The rate of commission to which the foreman is entitled.
11. The language in which the accounts shall be kept.
12. The mode of custody and investment of money.
13. The settlement of disputes touching or concerning the chit.
14. On receipt of application, the Registrar shall examine the application and Bye laws in order to satisfy himself that the bye-laws are:–

• In conformity with the Chit Fund Act, 1982 and Rules;
• Suitable for carrying out the object of the chit;
• Suitable for carrying safe and fair conduct of the business.
• And shall grant a certificate of registration in Form CF-II.

Amendment of BYE-LAWS:

After the Bye-laws have been registered, the chit fund company can apply for the amendment of these bye-laws, if necessary.

Documents required for amendment of BYE-LAWS:

• Application alongwith a Court fee stamp of Rs.5/-
• Approved Bye-laws (in original)
• Proposed Bye-laws (in duplicate).
• When the proposed amendments in Bye-laws are approved, one copy of Bye-Laws duly endorsed for registration of amendment will be issued to the company. No application for amendment of Bye-laws will be entertained, if the chit group of such Bye-laws has commenced. Under prevailing practice of the departmentamendment of bye-laws is allowed only once.
• After the Registrar, Chit Funds Delhi is satisfied that all the requirements are fulfilled; a certificate for registration of first Bye-laws will be issued to the company. The Certificate of registration or the attested copy thereof shall be displayed prominently at every place of chit business.