Section 25 Company

Procedure for Registration of Section 25 Company (NGO)

Procedure for Registration of Section 25 Company

The following is a brief procedure for registration of section 25 company.

1. Apply for and Get Director Identification Number.

The first step is to get DIN Numbers for all the proposed directors of the company. The minimum directors required are three

2. Apply for Name Approval.

After obtaining DIN Nos, the company must apply for name approval

3. Application for grant of license.

After receiving Name Approval, the company must submit an application to the Registrar of Companies (ROC) in form 24A along with relevant documents. This application requests a license to remove the words ‘Private Limited’ or ‘Limited’ from the name, as applicable. It also requests registration of the company as a section 25 company

4. File Memorandum and Articles of Association and necessary forms.

After obtaining the license from the Registrar of Companies, the company must file further forms 18, 32, and 1 with the ROC and obtain the Certificate of Incorporation.

Documents Required for Section 25 Company

 

  1. For Director Identification No (DIN) (required for all directors):
    Photo Identification Proof Of Directors (PAN Card Mandatory)
    Color Passport Size Photograph – 2
    Address Proof (If address not included in Photo ID Proof)
  2. For Digital Signature (required for at least one director):
    Photo Identification Proof Of Directors (PAN Card Mandatory)
    Color Passport Size Photograph – 2
    Address Proof (If address not included in Photo ID Proof

Additional Documents Required for Form 24A

  1. For form 24A
    1. 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.
    2. A declaration by an advocate or a chartered accountant confirming that the memorandum and articles of association conform to the provisions of the Act. This declaration must also confirm that the applicant has duly complied with all requirements of the Act and its rules regarding registration
    3. A list of the names, addresses, and occupations of the promoters and members of the board of directors (three copies). This list should also name any companies, associations, or other institutions in which the promoters are directors or hold positions, along with a description of the positions held.
    4. A statement of assets and liabilities
    5. Source of income of the Applicant Company and estimate of annual expenditure;
    6. A statement briefly describing any work already done by the association and the work it proposes to do after registration under section 25;
    7. A statement of the grounds for making the application under section 25 of the Companies Act, 1956;
    8. A declaration by each applicant that he/she is of sound mind and not an undischarged solvent. This declaration must also confirm that a court has not convicted the applicant of any offense and that the applicant is not disqualified under section 203 of the Companies Act, 1956 for appointment as director.