Section 25 Companies

Non Profit Making Organisation (Section 25 Company)

Section 25 companies: A Company which is 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. .There are three criteria for determining whether a particular company is section 25 company or not:

 A.) Its objects should be only to promote commerce, art, science, religion, charity or any other useful object

 B.) It should intend to apply its profits or other incomes only in promoting its objects

 C.) Central government should have granted a licence to such a company recognising them as such

Privilages Enjoyed by Non Profit Making Organisations (Section 25 Companies):

The section 25 company enjoys all advantages that any other limited company registered under companies act enjoys. But apart from these advantages there are some specific privileges conferred upon them that distinguish them from other companies

 A.) Section 25 companies are allowed to dispense with the use of term limited or private limited from their names

B.) As per the provision of section 3 of the companies act a private company is required to have a minimum share capital of rupees one lakh and public company is required to have minimum share capital of five lakh rupees. However Section 25 Companies have been exempted from this requirement regarding minimum share capital by insertion of sub-section (6) through Amendment Act of 2000. As such they can be registered even if they have share capital less than the statutory minimum.

C.) Section 25 Company without a share capital is required to file returns with the Registrar as required by section 160 but it has been exempted from mentioning the particulars of the members who are presently with the company or have ceased to be members since holding of its last AGM

D.) Every company is required to hold its Annual General Meeting during business hours and on a day that is not a public holiday and has to be held at its registered office or at a place within the limits of city, town or village where its registered office is situated. Section 25 Company has been exempted from this provision As such they are free to determine the date, place and time of its AGM according to their convenience and feasibility the only condition being that time, place and date of such meeting should have been pre determined by the Board of Directors

E.) Section 25 Company is required to maintain books of account relating to a period of only four years instead of eight years immediately preceding the current year.

 F.) Section 25 Companies are free to increase the number of its directors without seeking approval of central government

 G.) A person seeking appointment as director for first time need not file his consent in advance with the company for working as a director if appointed under section 25 Companies

 F.) Under section 285 the meeting of Board of Directors should be held atleast once in every three months and four meetings should be held in a year. But section 25 companies are allowed to hold Board meetings only once in six months but should have held four meetings in a year.

 G.) The fees payable by a Section 25 Company at the time of registration and further increase of its share capital has been kept very low in comparison to other companies

We are Providing following services in respect of companies :

* Formation of Private/Public limited company/Non Profit Making Organisations.

* Drafting of memorandum and article of association of companies.

* Conversion of a private company into a public company and public Ltd. into a private Ltd .

* Changing the name of company.

* Change of registered office.

* Alteration of main objects of the company.

* Inclusion of new business in the memorandum of the company.

* Statutory meeting and statutory report.

* Appointment of directors and their remuneration