Company Registration under Sec 25

As per Indian Law , the following forms exists for Non Profit organizations :

  • Trusts
  • Societies
  • Section 25 companies

Sec 25 company is one of the popular form of Non-Profit organization in India. The companies under Sec 25 comes under The Companies Act , 1956. The companies may be registered to for promoting commerce, art, science, religion, charity or any other useful object. The profits accrue 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 5 lakhs and by a private company is Rs 1 lakh. Sec 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 4 years only instead of 8 years stipulated for other companies under the Companies Act 1956.

As per the new Companies Bill 2012, Sec 25 has now become Sec 8. The new bill provides for provision of person or an association of persons to be registered under this Act as a Limited Company whereas the Companies Act 1956 mentioned only an ‘association’ to be registered as a Company.

Requirement to incorporate a Limited company:(Normal Company)

Proposed Name of the Company:Minimum 4 names required.
Nature of Business:Object of business you want to carry on
Directors:Minimum 2 directors
Shareholder:Minimum 2 shareholders
Authorised Capital:Minimum Rs. 1 lacs
DIN:DIN of all the persons appointed as directors
DSC:One Digital Signature of Promoter

Documents required for persons appointed as Director their DIN & DSC:

(A) Two Passport Size Photographs of all persons to be appointed as director:

(B) Proof of Identity (any one of the following)

  • Copy of Passport
  • Copy of Election I Card
  • Copy of driving Licence
  • Copy of PAN Card(must)

(C) Proof of Residence (any one of the following)

  1. Copy of Passport
  2. Copy of Election I Card
  3. Copy of driving Licence
  4. Copy of Ration Card
  5. Copy of Electricity Bill
  6. Copy of Telephone Bill
  7. Copy of Bank Statement


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