Liscense & doc req for small finance business

Sir, I am planning to start up a small finance business at CHENNAI of lending money to shops say for  example  B2B , finance to shop from Rs5000 to Maximum Rs10000 and collect the lended money on daily basis say for example Rs10000/100 days = Rs 100 per day collection. I want to do it properly will necessary liscense and document, can any one throw light on this. Please let us know the liscense and document required on this.

Regards,

Babu

The license is mandatory, contact /liceses PAN a local Chartered Accountant who is also an advocate for guiding you properly and helping in getting such permissions, PAN, GST numbers etc.

Most of the States have enacted law prohibiting money lending without a valid license.

Thanks Venu sir for your reply, iam from Chennai could you please tell me what kind of liscense and document required to start up.

Money lending by private persons (other than Banking and Non-Banking financial institutions) is governed by State Laws qua grant of licence, contact and consult a local prudent lawyer for professional guidance and necessary proceeding