Offering legal consultancy services for society formation, we have become a leading choice of our clients. Consultancy services that we offer are aimed at maximum client satisfaction and the features of a society are:

• Regulate by Societies Registration Act, 1860
• Jurisdiction by Registrar of societies
• Registration Document required is Memorandum of association and rules
• No stamp paper required for memorandum of association and rules and regulations
• Members required are minimum seven managing committee members
• No upper limit
• Boards of management are governing body or council/managing or executive committee
• Mode of Succession on Board of Management is through Appointment or Election by members of the general body

Important Legal Terms :

According to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act:

Charitable societies :

• Military orphan funds or societies established at the several presidencies of India
• Societies established for the promotion of science
• Literature or the fine arts, for instruction, the diffusion of useful knowledge
• The diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs

Legislation: Societies are registered under the Societies Registration Act, 1860, which is a federal act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act, but also, additionally, under the Bombay Public Trusts Act.

Main Instrument: The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined.

Trustees: A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committee

Trust or NGO Incorporation has become easier while rendering our well managed consultation services for Trust Formation. Our team of professionals holds an ample industrial experience and has been helping NGOs, trusts, societies and other allied entities to get established as well as registered in India.

The establishment of trust is based on the nature of operations of the organizations and the companies can get them registered under the following acts:

• As a Charitable Trust
• As a society registered under the Societies Registration Act
• As a Company licensed under section 25 of the Companies Act
• Registration of Co-operative Societies
• Registration of Company under Section - 25 of Companies Act, 1956
• As a Society registered under the Societies Registration Act
• Registration of NGO under Income Tax for Tax exemption u/s 12A
• Registration of NGO under Income Tax for u/s 80G

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 license by the central government recognizing them as such. Such companies should intend to apply its profits, if any or other income only in promoting its objects and must also prohibits payment of dividend to its members.

Thus there are three criteria for determining whether a particular company is section 25 company or not:

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

2) It should intend to apply its profits or other incomes only in promoting its objects; and

3) Central government should have granted a license to such a company recognizing them as such.

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.

Minimum Share Capital: 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 les than the statutory minimum.

 

Notes: According to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established `for promoting commerce, art, science, religion, charity or any other useful object, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Note: An association already registered as a company, may also apply for a license u/s 25.