What is the significance of Section 25 companies Act?

A “Section 25” company is registered under Section 25 of the Companies Act, 1956. This section provides an alternative to those who want to promote charity without creating a Trust or a Society for the purpose.

What is Section 25 of the Companies Act?

Section 25 in The Companies Act, 1956. 25. Power to dispense with” Limited” in name of charitable or other company. (4) A firm may be a member of any association or company licensed under this section, but on the dissolution of the firm, its membership of the association or company shall cease.

Can Sec 25 companies alter their objects clause?

3) Section 25 Company cannot alter its objects clause in its Memorandum without seeking the written approval of central government [sub section (8)].

What is the difference between Section 8 and Section 25 company?

A Section 8 Company is the same as the popular Section 25 company under the old Companies Act, 1956, which was one of the most popular forms of Non- Profit Organisations in India. But, as per the new Companies Act 2013, Section 25 (as per the old act) has now become Section 8.

Can private limited company accept donations?

Yes, a private ltd. Also just be careful that you don’t accept donations “in your company’s name” as there will be a lot of legal hassles as yours is a private limited company and private limited companies are strictly prohibited from accepting public deposits, as such.

Is section 25 company a limited company?

Under the Companies Act (“Act”), 1956, Section 25 company can be defined as a limited company formed for the sole object of “promoting commerce, art, science, religion, charity, or any other useful object, and intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of …

Which of the following can be registered under Section 25 of the Companies Act 1956?

An association having objects to promote commerce, art, science, religion, charity or any other useful purpose and not having any profit motive can be registered as Non Profit Company under Section 25 of the Companies Act,1956.

Which is better trust or society?

Unlike trusts, a society has a more democratic set up with membership and an elected body to manage the society. The original members of a society can continue to remain in control as long as they are elected to the managing committee, but at the same time can opt out of the society if they wish, which trustees cannot.

What is a Section 25 company in India?

Can a partnership firm become a member of Section 25 company?

❖ Partnership firm – A partnership firm is allowed to be a member of the Section 25 Company. ❖ Minimum Paid up Share Capital – The Companies Amendment Act, 2000 introduced the concept of minimum paid-up capital.

Which is the purpose of a section 25 company?

Section 25 companies are those companies which are 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.

What are the requirements of Section 25 of Companies Act 1956?

1) All companies having limited liability are required to use the term ‘limited’ or ‘private limited’ as the case may be in their names as required by section 13. But section 25 companies are allowed to dispense with the use of term ‘limited’ or ‘private limited’ from their names [sub-sec. (6)].

Can a partnership be a section 25 company?

Partnership firm – A partnership firm is allowed to be a member of the Section 25 Company. Minimum Paid up Share Capital – The Companies Amendment Act, 2000 introduced the concept of minimum paid-up capital.

Is there a minimum share capital for Section 25 companies?

No Separate minimum share capital is prescribed for the section 25 companies. However, depending on the portfolio or Organizational Structure like Private or Public Company, Section 25 companies require having INR 1 lac or 5 Lacs as authorised Share capital respectively.