hire purchase license
Manish Raj Verma
(Querist) 12 October 2010
This query is : Resolved
hello sirs'/madam,
a client of mine has asked me that, he wants to the business of vehicle finance on hire purchase. and how he can take the license of hire purchase,
so, i would like to know, how to get such license, who is the comptent authority to issue such license. etc. etc.
kindly let me know.
Thanks,
Manish Raj Verma,
Advocate
9359427713
Raj Kumar Makkad
(Expert) 12 October 2010
Money laundering in India is governed under Money laundering Act according to which permission from RBI is must to deal in the money matters.
R.Santha Moorthy
(Expert) 12 October 2010
For doing Hire-purchase finance business, no licence is required under law. Hire-purchase Act is still not codified. Any one can enter into Hire-purchase Agreement with any vehicle owner by signing a HP agreement document (a formate is available at cost at Reliable Stores, Sowcarpet, Chennai), which should affixed with necessary stamp being supplied by the local Treasury and get his name or finance company name endorsed in the RC Book of the vehicle by applying to the Transport Registering Authority concerned. All such forms of applications are also available at the store mentioned.
Guna Shekaran R
(Expert) 13 October 2010
Your client has get license under Local Shops and Commercial Establishment Act to do business. I agree with Mr.R.Santha Moorthy and disagree with Mr.Raj Kumar makkad with great respect as there no Money laundering involved
Sri Vijayan.A
(Expert) 13 October 2010
There is no license is needed to run a hire-purchase business.
There are some license available for pawn broking, money lending.
There are certain rules governing the rate of interest.
To run this business, one shall have good tie-up with vehicle sellers and transport offices
DEFENSE ADVOCATE.-firmaction@g
(Expert) 19 October 2010
Hire purchase act is most wonderful act even it is passed but not notifies still giant financial lenders doing buinsess.
As pointed out no need to take any permission except under vat / sales tax if the turnover is beyond the limits prescribed.
