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Discussion > Corporate Law >

Procedure for Incorporation of Section 25 company

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Legal Consultant

[ Scorecard : 358]
Posted On 04 December 2007 at 09:58 Report Abuse

Dear Freinds,


Can anyone detail out the procedure for incorporating Section 25 Company.


Thanking you in advance,



Online classes for CA CS CMA

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Posted On 28 December 2007 at 17:22

I would like to know how to start a section-25 companu

company secretary in practice

[ Scorecard : 148]
Posted On 02 January 2008 at 14:11

give me your mail id. i can mail you the detailed procedure My mail id is cs.shilpa07 @

Legal Consultant

[ Scorecard : 358]
Posted On 09 January 2008 at 08:31

Dear Shilpa, My mailID is royrakes @ Please forward the procedure. With Best Wishes, Rakesh

Legal Consultant

[ Scorecard : 358]
Posted On 09 January 2008 at 14:14

Dear Shilpa, My Id is royrakes @ Thank you for reply. Best Regards, RK

Poornima N Ramakrishna
Finance Manager

[ Scorecard : 66]
Posted On 10 January 2008 at 12:14

Hi Shilpa, Even I am looking for these details.. could you please mail me same... my id is poornima.ramakrishna @ Thanks and regards, Poornima

Poornima N Ramakrishna
Finance Manager

[ Scorecard : 66]
Posted On 10 January 2008 at 14:17

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, descripttion 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 descripttion 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.)

Total thanks : 2 times

Posted On 12 February 2008 at 17:53

Hi Shilpa ,Plz send me the procedure for incororation of Section 25 Company

Posted On 12 February 2008 at 17:55

Hi Shilpa ,Plz send me the procedure for incororation of Section 25 Company Email ID - s.maheshwari85 @

Company Secretary

[ Scorecard : 1233]
Posted On 13 February 2008 at 08:06

Hi all I have uploaded the same in the share files section.Once it is approve u all can use the same.

There are 48 Replies to this message

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