A firm or institution which provides administrative services for insurers and other associations having health insurance policies. The TPA in addition to being the liaison between the insurer and the insured is also involved with certifying eligibility, preparing reports and processing claims. TPA offers such services at a cost. Only a company with a share capital and registered under the Companies Act 1956 can function as a TPA whose primary object shall be to carry on business in India as a TPA in the health services and on being licensed by the Authority the Company for the purpose. The minimum paid up capital in equity shares amounting to Rs. 1 crore. At least one of the Directors shall be a qualified Medical Doctor. The aggregate holdings of equity shares by a foreign company shall not at any time exceed 26% of the paid up equity capital.