there is association of insurance agents called as "LIFE INSURANCE AGENTS ASSOCIATION". It is not registered under any act.
Now members want to form the same as section 25 company. object of the association is to colled annual fees from members and utilise the same for their training and development.
I have checked the named availability on mca website and the same is available.
Can i apply for the name as "LIFE INSURANCE AGENTS ASSOCIATION PRIVATE LIMITED" ?
12 May 2012
No. While applying for the name, you should apply it as "Life Insurance Agents Association." Dont use the word Private Limited. If you do so, you will not get the license for the same under Section 25.
Any association desirous of being incorporated as a company with limited liability, without the addition of the word “Limited” or the words “Private Limited” as the case may be shall make an application in writing to the ROC on behalf of such company/proposed company for grant of licence under section 25 of the Companies Act, 1956. Section 25 companies are those companies which are formed for the sole purpose of promoting commerce, art, science, religion, charity or any other useful object and have been granted a licence by the Central Government recognizing them as such. Such companies should intend to apply its profits, if any, or other income only in promoting its objects and must also prohibit payment of dividend to its members. Thus there are three criteria for determining whether a particular company is section 25 company or not: (a) The object for which the company is proposed to be formed or already formed is to promote commerce, art, science, religion, charity or any other useful object; (b) Profits, if any, earned in carrying out the object and other income are proposed to be applied only for promoting its objects; and (c) The company intends to prohibit the payment of dividend to its members.
Sir there is association of insurance agents more than 100 who contribute annual membership fees and that money is utilised for the purpose of training and development of the members. surplus if any left is kept in bank account which is further utilised for training and development of members. outside agents(non members) are not allowed to particiapte in the programme.
so can we say that object is to promote commerce, art and it can be incorporated as sec.25 company ?
As you are using the word insurance in your company name so i think, you will required to complete minimum authorised capital requirement and also you will take approval from IRDA, because of using such word.
As you says you are incorporating company for only your company members so ROC will object that it is not the promotion of commerce or art, but it is only for your members(agent).
I think they will not provide licence under section 25 of the Companies Act.But i m not sure.
There is no problem in registering the company in the given name, "Life Insurance Agents Association". There are many such associations already registered and also to whom license u/s 25 has been granted. So go ahead, the name will be approved and the license will be granted.
Here the word insurance is not alone. So no question of registering under IRDA or no question of having higher authorised capital. Here the company is not doing insurance business but is providing collective facility to insurance agents. This in turn is development of commerce and is a valid ground for grant of license. So there is no problem in applying for the given name.
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