Procedure for Incorporation of Section 25 company

Page no : 3

Hiren (C.A.) (45 Points)
Replied 04 February 2009

Originally posted by :Guest
"	If we are forming a new Non Profit Company and are not into the board of any other company or not having any registered company by our name , then is it nesseary to be have any company by the name of any of the promoter , and can the members of thesame family form a non profit company , as in the case of society the members should not be in blood relation of each other , is it same in the case of non profit companyï¿½U.S 25 of the company act 1956. Please guide me in this forum or please mail me the details at bajajnishhant @ gmail.com ï¿½ Thanking you in anticipation ï¿½	"

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Hiren (C.A.) (45 Points)
Replied 04 February 2009

Originally posted by :Guest
"	I want to know the procedure for incorporation of a section 25 company.Please mail me the details at cahirenparekh @ gmail.com Thanking you in anticipation Hiren Parekh.	"

J. Manivannan (Advocate & IP) (242 Points)
Replied 04 February 2009

Originally posted by :Hiren

Originally posted by :Guest

"
I want to know the procedure for incorporation of a section 25 company.Please mail me the details at cahirenparekh @ gmail.com

Thanking you in anticipation

Hiren Parekh.
"

PROCEDURE FOR INCORPORATION OF COMPANIES UNDER SECTION25

1. Find out whether the proposed objects are fall under ambit of section 25.

2. Choose your desired name and Check Availability of desired name from Ministry of Corporate Affairs through E-form-1A.

3. Prepare MoA & AoA of Section 25 Company with using availability name.

4. Application makes to Regional Director of Company affairs for issue of license under section 25 through e-Form-24A. The following documents need to be prepared and same should be attaching with e-Form-24A.

MoA and AoA of section 25 Company (should be signed by all subscribers )
Declaration by directors through Form-v of Companies regulation Act,1956
Prepare budget of section 25 company like investment and expenditure of initial stage.
Declarations by either Advocate or Charted Accountant or Company secretary regarding MoA and AoA have been drawn in conformity with provisions of the Act.
Detailed of Applicant Company Promoters (if proposed sec25 company is private, in this case minimum two members required or in case of public minimum 7 members required.)
The applicant company directors shall be disclosed their complete details together with name of companies in which those are interest or director or other valuable position held in any other organizations.
Brief descripttion of proposed activities of section 25 company (like what kind of to be done.)

Note. What are the documents enclosed in form 24 A, the physical copies of same should be filed to Regional Director along with paid challan of form24-A.

5. If you are obtain License from Regional Director, then you will be start incorporation proceeding as like other company incorporation mode, such as filing of Form-1, Form-18, Form -32. Incorporation fees applicable as similar to the other Companies. however stamp duty exemption avail for MoA and AoA preparation.

SANJAY AGARWAL (Tax Advisor) (48 Points)
Replied 24 March 2009

Dear Sir,

I want to convert an existing Private Limited Company in U/S 25 Company if possible pleaase mail details procedure for it in my mail id sanjay.tradewings @ yahoo.com

I shall ever greatful to you for this act of kindness

SAYED REHMAT ALI (STUDENT) (25 Points)
Replied 18 July 2009

PLEASE SEND ME THE PROCEDURE FOR FORMATION O SECTION 25 COMPANIES WHICH IS A PUBLIC LIMITED AND IS A UNLIMITED CO.

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Rajarethinam (Consultant) (26 Points)
Replied 17 August 2009

Originally posted by :Poornima N Ramakrishna
"	Hey Guys!, I found some useful stuff with registering section 25 companies.. see if its of some use to u all... NON - PROFIT COMPANY A Non-Profit Company can be formed for any non-profit activity. It is identical to an ordinary company in all respects except that it is not established for profit and commercial gain. It is also called a Section 25 Company and is a voluntary association of people, registered under the Indian Companies Act, 1956. The accountability aspect of a non-profit company because of statutory disclosure requirements is a relevant advantage of a company's operational transparency and ability to invoke and maintain public faith. Objectives of a Non-profit company: - Objectives of a non-profit company can be including promotion of commerce, art, science, religion, charity or any other useful object. Profits are applied for promoting only the objects of the company and no dividend is paid to its members. (Section 25 (1) (a) and (b) of the Companies Act, 1956). A non-profit company may be Public or Private. If the non-profit company is a private company a minimum of only two members are required to form it. However, if the non-profit from is for a public purpose, then a minimum of seven are needed. A 'Section 25 company' and is eligible for certain exemption from provisions of law and concessional rate of fees etc. Steps for establishing a section 25 Company 1. Application for a name Applying for availability of name to the Registrar of Companies is the first step towards registration of the non-profit company. Four names are to be suggested to the Registrar in prescribed Form. 2. Memorandum and Articles Memorandum and Articles of the non-profit company are required to be approved by the Regional Director and the ROC. The documents required for submission of application are: i) Three printed copies of the memorandum and articles of association of the applicant company, signed by all the promoters with full name, address and occupation (No stamp duty is payable on the Memorandum and Articles of Association) ii) A declaration by an advocate or a chartered accountant that the memorandum and articles of association have been drawn up in conformity with the provisions of the Act and that all the requirements of the Act and the rules made there under have been duly complied with, in respect of registration; iii) List of the names, addresses and occupation of the promoters, members of board of directors, name of companies, associations and other institutions in which promoters of the applicant company are directors or hold positions, descriptttion of the positions held by them (three copies) iv) A statement of assets and liabilities v) Source of income of the Applicant Company and estimate of annual expenditure; vi) A statement giving a brief descriptttion of the work, if any, already done by the association and of the work proposed to be done by it after registration in pursuance of section 25; vii) A statement on grounds on which the application is made under section 25 of the Companies Act, 1956; viii) A declaration by each of the persons making the application that he/she is of sound mind, not an undischarged solvent, not convicted by a court for any offence and does not stand disqualified under section 203 of the Companies Act, 1956 for appointment as director. 3. License under section 25 An application for the license under 25 for the company is to be submitted to the Regional Director (Department of Company Affairs). The license essentially permits the word 'Limited' or 'Private Limited' to be deleted from name of the company. It could take upto 12 weeks after application to receive the license under section 25 of the Companies Act 1956. Pursuant to application to the Regional Director (within seven days thereafter), the applicant company has to publish a notice in a newspaper where the registered office is situate and certified copy of the notice to filed with the Regional director. 4. Registration with ROC Registration certificate is normally granted within one month after filing section 25 license; Converting existing company to section 25 company The Companies Act, 1956 also facilitates the conversion of an existing company to a non-profit company. Foreign Director There is no bar under Indian law for a foreigner to be a Director in a section 25 company, (relevant permissions prescribed under the Foreign Exchange Management Act.)	"

Rajarethinam (Consultant) (26 Points)
Replied 17 August 2009

Can you ple

Rajarethinam (Consultant) (26 Points)
Replied 17 August 2009

Please give the model articles for sec.25

mcsaju (pcs) (25 Points)
Replied 09 January 2010

pl.find attached the procedure.

cs mc saju

Attached File : 39 procedure for registration as section 25 company.doc downloaded: 448 times

Nehal H Shah (CA) (23 Points)
Replied 19 March 2010

Hi Shilpa, Can u pls mail me a copy of the Memorandum and Articles of Associatin for a section 25 company. Thanks. My mail id is nehal.shah @ tcs.com

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Nehal H Shah (CA) (23 Points)
Replied 19 March 2010

Hi, can anyone let me know what are the tax and audit requirements for a sectin 25 company and is it liable for paying any tax ? Can it apply for a 80 G issuer certificate. Pls reply to me at nehal.shah @ tcs.com

Vaishakhi Shukla (Company Secretary) (25 Points)
Replied 16 April 2011

Hi Shilpa, Can you pls send me the whole procedure for Incorporation of Sec. 25 Company with details of requiered documents on my email id cs.vaishakhishukla @ gmail.com ?