Chit Funds Act 1971 · 2020 Revised Edition · Part 3 · Licensing of Chit Fund Companies
7. Application for licence
Feedback & supportA public company which desires authority to carry on chit fund business in Singapore must apply in writing to the Authority for a licence under this section and must supply —
public company
“public company” means a company limited by shares incorporated in Singapore other than a private company;
a copy of the memorandum of association and articles of association or other instrument under which the company is incorporated, duly verified by a statutory declaration made by a senior officer of the company;
a copy of the latest balance sheet of the company; and
any other information that may be called for by the Authority.
In considering any application by a public company for a licence, the Authority may require to be satisfied as to —
the financial character of the company;
the character of the management of the company;
the adequacy of the capital structure of the company and earning prospects of the company;
the objects of the company as disclosed in its memorandum of association;
the convenience and needs of the community to be served; and
whether the public interest will be served by the granting of a licence.
The Authority may, with the approval of the Minister, grant a licence, with or without conditions, or refuse to grant a licence.
The Authority may at any time vary or revoke any existing conditions of a licence or impose conditions or additional conditions thereto.
Where a licence is subject to conditions, the chit fund company must comply with those conditions.
chit fund company
“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7. All branches and offices in Singapore of the company are deemed to be one chit fund company for the purposes of this Act;
Any chit fund company which fails to comply with any of the conditions of its licence shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction.