(PTI) The government today eased rules for incorporating not-for-profit companies, by giving the Registrar of companies the power to directly issue licences. Besides, it has reduced the time taken for setting up Section 25 companies by doing away with some mandatory provisions, Ministry of Corporate Affairs Joint Secretary Avinash Srivastav told reporters here.

“Now, the power to issue licence under section 25 companies has been delegated to Registrar of Companies…It will reduce the time taken in incorporation of Section 25 companies (Companies not for profit). The 30-day mandatory notice period before incorporating such a company has also been done away with,” Srivastav said.

At present, any company seeking approval for issue of licence under Section 25, makes an application to Regional Director (RD) in eForm 24A. The application is then processed and approval/rejection order is passed by the RD concerned.

Further, Srivastav said that the ministry has also taken initiatives to refund fees wrongly paid by the stakeholders while availing various services at MCA 21.

It is also working on ensuring that ”Dormant Companies” — companies that have not been filing their annual reports for 3 consecutive years — do not file for new company name in anyway.

Besides, the MCA has also introduced payment of stamp duty fee for Jammu and Kashmir, mandatorily in electronic manner through MCA 21 e-portal system.

“Now 30 States and UTs are covered by estamps leaving only 2 States and 2 UTs (Nagaland, Goa, UTs Daman & Diu and Dadar & Nagar Heveli),” it said.

More Under Company Law

Posted Under

Category : Company Law (3412)
Type : News (12552)
Tags : section 25 company (15)

0 responses to “Govt eases rules for incorporating not-for-profit (Section 25) companies”

  1. DR.PANNA LAL NAWALKHA says:

    in my earlier comment please add eligible to become members with no permanent directors in place of eligible——-to become such companies

  2. DR.PANNA LAL NAWALKHA says:

    under corporate identity number :U91990RJ2010NPL031564 YOU HAVE REGISTERED GEEJGARH RESIDENTS CLUB AND MAINTANANCE SERVICES,PROMOTED BY GOPALDASS RATHORE & YOGESHWARSINGH RATHORE ON 13.01.2010,AS AN EXCLUSIVE PRIVATE COMPANY UNDER SECTION 25 .,IN REFERENCE TO THEIR APPLICATION 25.11.2009(SRNA73448235). This company started maintanance services of 100 flats,constructed and sold by promotors of this company in partnership with Ganpathy constructions of MANGLAM GROUP. Being one of apartment owner ( FLAT NO.812 B),I wanted maintanance services under maintainance contract tobe managed by society/company with full PARTICIPATION OF ALL APARTMENT OWNERS..UNDER EXISTING PROVISIONS THIS COMPANY CAN NOT MAKE ALL 100 OWNERS AS MEMBERS(,AS AS PER YOUR GUIDELINES IT IS LIMITED UPTO 50). CAN THIS EXCLUSIVE PRIVATE OWNED COMPANY BE MADE PUBLIC WITH PARTICIPATION OF ALL 100 OWNERS? YOUR VALUED GUIDANCE SOLICITED TO ME ,A LAYMAN ,A RETIRED PERSON .DO YOU HAVE ANY GUIDELINES GIVEN /PRESCRIBED FOR 25 SECTION COMPANIES TO SEE THAT THEY ARE WORKING WITHOUT ANY PROFIT/MOTIVE OF PROFIT/CLANDESTINE PECUNIARY GAIN. AS THIS COMPANY IS NOT WORKING ABSOLUTE WITHOUT PROFIT ,CAN YOU LOOK INTO THE AFFAIRS WITH INFORMATION FROM APARTMENT OWNERS. IN apartment management ,permitting such companies is encouragement to unscrupulous trader( builder-vendor) to hide their ‘cheatings’. Unless all apartment owners are eligible to become such companies should be debarred from maintanance work of multistoreyed apartments . Permission to such companies is in contravention to spirit/core of apartment act and other regulatory guidelines of act. I have observed clandestine mode of gains/profits ,,thus violating your 25 act company with no profit.

  3. pramod khanna says:

    Can a Section 25 company restrict its directors to maximum number of elected terms? E.g., a director after completion of 2 elected terms of 3/4 years must step down and cannot offer himself for election for one term.

Leave a Reply

Your email address will not be published. Required fields are marked *