Section 25 Companies In India

Section 25 Companies in India
We have been helping our clients by offering services for the clients who want to set up NGOs under Section 25 Companies in India. Offering consultancy for these services we have been helping our clients to overcome major and minor issues related to the same.

Features of Section 25 Companies:

Regulated by Indian Companies Act, 1956
Jurisdiction by Registrar of companies
Registration Document required is Memorandum and articles of association.
No stamp paper required for memorandum and articles of association.
Members required are minimum three trustees and no upper limit is there.
Boards of management are directors/ Managing committee.
Mode of Succession on Board of Management is through election by members of the general body

Limitation of Section 25 Companies :

A Long and time consuming process normally takes between Three to Four Months
Cannot use words Limited or Private Limited
Costly as compared to other form of NGO
Prohibition from declaring dividends

Some Important Definition :

Legislation: Section-25 companies are registered under section-25 of the Indian Companies Act. 1956.

Main Instrument: For a section-25 company, the main instrument is a Memorandum and articles of association (no stamp paper required)

Trustees: A section-25 Company needs a minimum of three trustees; there is no upper limit to the number of trustees. The Board of Management is in the form of a Board of directors or managing committee.

Notes:

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