Section 25 Company
Section 25 company is one of the popular forms of Non- Profit Organisation in India. Section 25 companies, under the Companies Act 1956, are companies formed for promoting commerce, art, science, religion, charity or any other useful object. The profits accrued or any other income obtained is used in promotion of its objectives and it prohibits payment of any dividend to its members. It may be registered as a Company with limited liability without the addition of words “limited” or “private limited” in its name. As per the Companies Act 1956, the minimum share capital required by a public company is Rs Five lakh and by a private company is Rs One lakh. However a Section 25 company is not required to have any minimum paid up capital. Further this category of company is required to maintain book of accounts relating to a period of four years only instead of eight years stipulated for other companies under the Companies Act 1956. The list of Section 25 companies may be viewed at the following link; http://www.mca.gov.in/MCA21/dca/RegulatoryRep/pdf/Section25_Companies.pdf
References
- Companies Act 1956
