Posted By admin on December 25, 2013 2 Comments
| BASIS OF DIFFERENCE |
SECTION 25 COMPANY |
SOCIETY |
TRUST |
| BASIC DOCUMENT |
Memorandum of AssociationArticles of Association |
Memorandum of AssociationArticles of Association with rules & regulations. |
Trust Deed – which contains objects of the trust (bye-law) |
| FORMATION |
Little Hard |
Simple |
Easy |
| JURISDICTION |
Registrar of Comapnies |
Registrar of Societies – (Maharastra Charity Commissioner) |
Deputy Registrar / Charity Commisioner |
| LEGISLATION / STATUTE |
Indian Companies Act 1956 |
Societies Registration Act 1860 |
Relavent state Trust Act |
| OBJECTS |
Nonprofit Activities |
Literary, Charitable, Scientific and resource oriented |
Social benefits & Charitable |
| MODIFICATION OF OBJECTS |
ComplicatedLegal Procedures |
EasyLegal Procedures |
Alteration can be undertaken only by the Founder.If the founder is deceased alteration of objects is impossible |
| REQUIRED MEMBERS |
Minimum = 7Maximum = No limit |
Minimum = 7Maximum = No limit |
Minimum = 2Maximum = No limit |
| REGISTRATION |
As per Companies Act under Section 25 |
As Society with Society Registrar |
As Trust with the Registrar. |
| STAMP DUTY |
No Stamp paper required for Memorandum of association and articles of association. |
No stamp paper required for Memorandum of association, and rules and regulations. |
4% of Trust property Value will be executed in non judicial stamp paper with the registrar |
| NAME |
Prior approval required from Registrar of Companies. |
Very easy to choose |
Very easy to choose |
| MANAGEMENT BOARD |
Board of Directors & Management committee |
Governing Body |
Trustees |
| SUCCESSION IN MANAGEMENT |
By Appointment |
By Election |
By Election |
| MEETINGS |
Quite Extensive as per the provision of Company Law |
Annual Meeting As per Law. Governing Body meeting as per the rules of Society. |
No provisions |
| LEGAL STATUS |
Full Legal Status |
Limited Legal Status |
Limited Legal Status |
| STATUTORY REGULATIONS |
Exhaustive |
Limited |
Nominal |
| MEMBERSHIP TRANSFER |
Free or Control as per desire. |
Impossible |
Impossible |
| MEMBER ADMISSION |
General Body or Board Control through issue of Capital. |
Governing Body Control |
Not applicable |
| DISSOLUTION OR TAKE OVER BY STATE |
Very risky and difficult |
Possible |
Possible |
| PAYMENT TO MEMBERS |
As approved by Company & State. |
Not restricted |
As notified in Trust deed |
In case you need any further information
Contact us at 9818092002
Email : info@companyindia.co.in
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Posted By admin on December 25, 2013 No Comments
- In today’s globalised world, business houses are planning to diversify and expand its operations across the territorial borders to increase its market share and have a international presence .For raising finance to meet the diversification plans, business houses are also looking for the foreign investments. And NGO’S are no exception to this.
- But the NGOs cannot take foreign contribution directly. For this purpose they should be registered under the Foreign Contribution Regulation Act 1976, commonly known as the FCRA.
- Foreign contribution can be received either one time or many times. For any one time contribution the NGOs can receive the amount by seeking prior permission of the FCRA Section of the Ministry of Home Affairs, Government of India; whereas for multiple and regular contributions of the foreign source it is advisable to seek permanent registration from the said Ministry.
Contact us at 9818092002
Email : info@companyindia.co.in
- For this purpose an application is to be made by the NGO (working for at least three years after its due registration), in the prescribed Form FC-8 along with the desired enclosures
- It is essential to receive foreign contribution only in one designated bank account.
Registered organization are required to maintain separate account under the FC head and submit a return along with the audited statement of accounts of the previous year by 31 July every year.
- The registered organization, should inform to the Ministry about any change in name of the organisation, its Registered Office and aims and objects within 30 days of the applicable change. .
- The management should be well aware of various provisions of the FCRA and should strictly follow the same otherwise they may face a number of rigorous punishments under the Act.
In case you need any further information
Contact us at 9818092002
Email : info@companyindia.co.in
Are you looking to form Section 25 Company?
Do you want to apply for DIN ?
Are you looking for compliance with FCRA rules?
Do you want to get FEMA APPROVAL?
Do you want to apply for PAN ?
Advantages of a Section 25 company
Disadvantages of a Section 25 company
Differentiate among Section 25 company, society and trust
Do you want to form a trust?
Do you want to form a society?
Filed under section 25 company Tagged with Tags: CAN NGO ACCEPT FOREIGN CONTRIBUTION DIRECTLY, can nri invest in section 25 companies?, fdi requirements for sec 25 companies, what are the fcra requirements for section 25 companies?
Posted By admin on December 25, 2013 No Comments
- Section 25 company if formed as a private limited company, requires atleast two directors and if formed as a public limited company, then requires atleast three directors.
As per Section 275 of Companies Act,1956,a person can’t become director of more than 15 companies, this limit doesn’tinclude directorship of private limited companies and Section 25 companies.
- Under section 259 a public company is not allowed to increase the number of it directors beyond the permissible limits under its articles without the approval of Central Government provided such increase results in total number of directors to go beyond twelve. But Section 25 Companies are exempted from this section and are thus free to increase the number of its directors without seeking approval of central government.
- Filing of Consent for Directorship:A person seeking appointment as director for the first time of Section 25,company needn’t file his consent in advance for working as a director if appointed.
- For Section 25 companies also, Section 274(1)(g) applies relating to disqualification of directors.
In case you need any further information
Contact us at 9818092002
Email : info@companyindia.co.in
Filed under section 25 company Tagged with Tags: applicability of sec 259 on sec25 company, applicability of sec 274 on sec25 company, applicability of sec 275 on sec25 company, Five points regarding directorship of a section 25 company, sec25 company's directorship requirements
