Registration under which act?, Other Topics

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my friends is providing a small type of loan to individuals and shop keeper i.e. the amount involved from 25000/- to 500000/- against which he is taking negotiable instrument like promissory note / Cheque as security.

He needs to do this business legally. If any cheque's got bounced, he needs to initiate the complaint before the court by legally.

Where do we register? Even I have verified the Tamil Nadu money lenders act, wherein we can register only when the lending amount is only up to 10000/-.

If we register this company under companies act, it has to be register only under NBFC wherein we have to deposit minimum of ₹ 2 Crore investment required. My friend does not have that much money to register as NBFC.

Please help us, in this situation.

Thanks in Advance.

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

The Central Government is going to decriminalize in Negotiable Instruments Act also.