Himani (NA) (54 Points)
13 May 2010Could anyone pls tell as to what type of company is a Section 25 company? As in Form 1A to be filed for applying name one has to tick whether it is a public co or a pvt one.
Next, whether Section 25 company is formed as a guarantee co.?
KIndly advise.......
student
(.)
(76 Points)
Replied 13 May 2010
Conferring of corporate personality to associations that promote cultural and charitable objectives, but exempting them from the operation of some cumbersome requirements (which are essentially for regulation of business bodies but are difficult for compliance by non-profit companies), are the noteworthy features that are provided under the companies act, 1956.
According to section 25(1): "Where it is proved to the satisfaction of the Central Government that an association is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful objectives, intends to apply its profits, if any, or other income in promoting its objectives, and to prohibit the payment of any dividend to its members, the Central Government may, by license, l direct that the association may be registered as a company with limited liability, without addition to its name of the word "Limited" or the words "Private Limited"
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