The Inspector General of Registration shall be the head of Chitty administration.An application for previous sanction to start and conduct a chitty shall be in form No I. It shall be either presented in person or sent by post to the Registrar of Chitties(Sub Registrar) in triplicate with three copies of the Variola with the prescribed fees.

No chitty shall after the commencement of Kerala Chitty Act 1975 be started and conducted, unless the previous sanction of the Government or of such officer as may be empowered by the Government in this behalf of (District Registrar) is obtained therefore and unless the chitty is registered in accordance with provisions of this Act.Previous sanction obtained shall lapse unless the chitty is registered before the expiry of six months from the date of such sanction. 

 No foreman shall be entitled to conduct at a time chitty is, the aggregate amount of which exceeds –

(a)   Where a foreman is a banking company as define in the Banking Regulation Act,1949(Central Act 10 of 1949) or a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Under takings) Act, 1970(Central Act of 5 of 1970),60 percent  of the net assets of the foreman

(b)   In other cases, 50 per cent of the net assets of the foreman:Provide that nothing contained in this subsection shall apply in case of any chitty of  which the foreman is a company owned by the Government of Kerala.
 
  Every foreman shall before the first drawing of the Chitty;-(a)    Execute a bond in favour of or in trust for the other subscribers for the proper conduct of the chitty, charging immovable property sufficient to the satisfaction of the Registrar for the realization of twice the chitty amount; or

(b)   Sit in an approved bank an amount equal to the chitty amount or invest in government securities of the face value of not less than one and a half times the chitty amount and transfer the amount so deposit or the Government securities in favour of the Registrar to be held in trust by him as security for the due conduct of the chitty.
 
 Variola shall be presented for registration in duplicate along with the order of sanction for the starting of the chitty, in person direct to the Registrar of chitties by the foreman or by his duly authorised agent. And the bond execute by the foreman shall be duly registered under the Registration Act 1908.Where a chitty is registered outside the state and twenty per cent or more of the subscribers are persons normally residing in the state, the foreman of the chitty shall open a branch in the state and obtain sanction and registration under provisions of the Act.